The following examples are for guidance only. For the purposes of the following examples, the following information is applicable throughout:

• The failed bank is established in Malta.
• Compensation Date: 1 January 2016. This is the date when the MFSA has formally determined that the failed bank is unable to honour its obligations towards its depositors and therefore unable to repay deposits.
• The payment date is within seven (7| business days of the Compensation Date.
• The bank pays interest annually on 30 June of each financial year. This is the last time the bank has paid interest to depositors.

Situation 1 – Savings Account paying zero per cent interest

Mr A has deposited €16,300 in a savings account with a bank. The bank suspends payments. Mr A is entitled to receive compensation of €16,300 within seven business days of the compensation date.

Situation 2 – Savings Account with 0.1 per cent interest

Mr A has deposited €16,300, £10,000 and U.S $80,000 in three savings accounts with a bank. The bank suspends payments. Mr A is entitled to receive compensation in euro, calculated as follows:

Accrued Interest (1 July 2015 to 1 January 2016)  Exchange rate as at 1 January 2016  Amount in euro 
€16,300 €8.15  N/A  €8.15
£10,000 £5.00  1GBP =1.35388 EUR  €6.77
U.S $80,000 U.S $40.00  1USD = 0.917410 EUR  €36.70
Total =  €103,283.22

Mr A will therefore receive compensation of €100,000 (as the maximum payable under the Scheme). within seven business days of the compensation date.

Situation 3 – Fixed Deposit Account
Mr A has deposited €16,300 in a deposit account with a bank which will mature in two years’ time. The bank suspends payments. Mr A will receive compensation of €16,300 with accrued interest, if any, within seven business days of the compensation date.

Situation 4 – Savings Accounts
Mr A has 5 savings accounts with a bank, with which he has no outstanding loan. The bank suspends payment. The total amount in these accounts is €120,000. Mr A is entitled to receive compensation of €100,000 within seven business days of the compensation date.

Situation 5 – A deposit and a loan
Mr A has a savings account of €24,000 with a bank. He also has a home loan with an outstanding amount of €200,000 which is not yet due. The bank suspends payments. Mr A is entitled to receive compensation of €24,000, with accrued interest if any within seven business days of the compensation date

Situation 6 – A deposit and a loan
Mr B has a savings account of €15,000 with a bank. He also has a home loan with an outstanding amount of €25,000 which is due. The bank suspends payments. Mr A  is entitled to receive compensation of €15,000 , with accrued interest if any within seven business days of the compensation date

Situation 7 – A deposit and an overdraft
Mr C has a savings account of €15,000 with a bank. He has also drawn €200,000 on his overdraft account. The bank suspends payments. Mr C is entitled to receive compensation of €15,000 with accrued interest if any within seven business days of the compensation date

Situation 8 – A deposit and a credit card account
Mr C has a savings account of €15,000 with a bank. He has also a credit card account in which he had just deposited €1,000 and is therefore in credit by such amount. The bank suspends payments. Mr C  will is entitled to receive compensation of €16,000 with accrued interest if any within seven business days of the compensation date.

Situation 9 – Joint Account
Mr A has deposited €50,000 with a bank. He also has a joint account with Mrs B amounting to €120,000. Mrs B has no other accounts with the bank. The bank suspends payments. In respect of Mr A, the Scheme calculates compensation as follows: €50,000 in respect of his personal account and his 50% share of the joint account, i.e. €60,000. Although Mr A has €110,000 in deposits, the maximum payment to Mr A would be €100,000. Mrs B is entitled to €60,000, her 50% share of the joint account.

Situation 10 – Two banks fail
Mr A has deposited €100,000 with Bank A. He has another deposit of €100,000 with Bank B. Both banks suspend payments. Mr A is entitled to compensation of €200,000 – €100,000 in respect of each bank.

Situation 11 – Temporary High Balances (1)
On the date a bank has been declared in default, Mr A has € 250,000 in his savings account. He does not have any other accounts with the failed bank. Mr A received €100,000 from the Scheme by way of compensation. However, the Scheme informs him (by way of adverts in the newspapers) that he might be eligible for additional compensation of up to €500,000 if the account at the bank might have had transactions relating to particular life events (see question 5). Mr A submits a claim to the Scheme saying that in his savings account, he had deposited an amount of €150,000 derived from a sale of private residential property exactly one month before the bank failed. Following detailed verifications, the Scheme pays Mr A an additional €150,000 by way of additional compensation.

Situation 12 – Temporary High Balances (2)
On the date a bank has been declared in default, Mr A has € 250,000 in his savings account. He does not have any other accounts with the failed bank. Mr A received €100,000 from the Scheme by way of compensation. However, the Scheme informs him (by way of adverts in the newspapers) that he might be eligible for additional compensation of up to €500,000 if the account at the bank might have had transactions relating to particular life events (see question 5). Mr A submits a claim to the Scheme saying that in his savings account, he had deposited an amount of €150,000 derived before a life insurance pay out in February 2015, more than six months from the date when the bank was declared in default. Following detailed verifications, the Scheme rejects Mr A’s claim for additional compensation because the Scheme is only obliged to pay for such additional compensation if the balances were credited in the depositor’s account within six months before the date the bank is declared in default.

Situation 13 – Temporary High Balances (3)
On the date a bank has been declared in default, Mr A has € 500,000 in his savings account. He does not have any other accounts with the failed bank. Mr A received €100,000 from the Scheme by way of compensation. However, the Scheme informs him (by way of adverts in the newspapers) that he might be eligible for additional compensation of up to €500,000 if the account at the bank might have had transactions relating to particular life events (see question 5). Mr A submits two claims to the Scheme saying that in his savings account, he had deposited (a) an amount of €150,000 derived from a life insurance pay out and (b) €300,000 from proceeds from sale of residential property. Both balances were credited in his account in November 2016, within the six months from the date when the bank was declared in default. Following detailed verifications, the Scheme accepts Mr A’s claim for additional compensation of €400,000 as the limit of €500,000 in additional compensation is per life event.

Situation 14 – Appeal
Mr A has deposited € 40,000 with a bank. He has € 100,000 deposited in another account which he claims to be part of a Temporary High Balances for the purchase of a private residential property. The Scheme has decided after viewing all evidence that the claim made by Mr A does not fall within with meaning of Temporary High Balance under the Regulations.

Mr A, who feels aggrieved by the decision, may request the Scheme to reconsider its decision. The Scheme shall within two months from such request provide the said depositor with a reasoned decision. This however does not prejudice the right of Mr A to  bring forward any claim he may also have against the Scheme before a competent court or tribunal of civil jurisdiction.

Situation 15 – Prescription / Time barred
Mr A has deposited € 10,000 with a bank. When the bank failed he did not receive compensation by the Scheme within 20 business days. Two years have elapsed after the 20 business days within which he should have received compensation. Mr A would not be entitled to receive compensation since the right to claim repayment has elapsed.