Do you know that:
Victims of burglars often are elderly people who keep money at home under the pillow, mattress, buried in the garden or hidden in any other unsafe place, therefore it is very important to keep money safe and protected from swindlers or thieves.
Money kept at home devaluate. Inflation “eats money away” like moles do with worn clothes. Money must be in circulation and work for you!
Deposits held in credit unions are insured under the same conditions as in commercial banks – with a state enterprise Deposit and Investment Insurance.
For what amount are deposits insured?
Sum insured is equal to the depositor’s deposit placed in a commercial bank or a foreign bank branch, or in a credit union on the day of initiation of bankruptcy proceedings, however it may not exceed:
1) LTL 45,000 – by 31 December 2003;
2) LTL 50,000 – from 1 January 2004;
3) LTL 60,000 – from 1 January 2007;
4) EUR 20,000 equivalent in litas – from 1 January 2008
What are the insurance benefits?
Amounts of insurance benefits:
1) 100% of deposit up to LTL 10,000 – by 31 December 2007;
2) 90% of deposit from LTL 10,000 to 45,000 – by 31 December 2003;
3) 90% of deposit from LTL 10,000 to 50,000 – between 1 January 2004 and 31 December 2006;
4) 90% of deposit from LTL 10,000 to 60,000 – between 1 January and 31 December 2007;
5) from 1 January 2008 – 100% of deposit up to EUR 3,000 equivalent in litas and 90% of deposit from EUR 3,000 equivalent in litas to EUR 20,000 equivalent in litas.
Examples of calculation of insurance benefit for a deposit
(NB: not all credit unions accept deposits in EUR; these calculations are only examples taken from SE “Deposit and Investment Insurance” internet website: www.idf.lt )
By 31 December 2003 maximum sum insured is LTL 45,000.
1. A customer has a deposit – LTL 15,000 and EUR 10,000.
His deposit will be calculated as follows: LTL 15,000 and EUR 10,000.
Therefore, the deposit amount will be: LTL 15,000 + EUR 10,000 x 3.4528 = LTL 49,528.
Amount of insurance benefit (K) due to the customer will be:
K = 10,000 x 100% + 35,000 x 90%, or K = 10,000 + 31,500 = LTL 41,500.
2. A customer has a deposit – LTL 5,000 and EUR 3,000.
Deposit amount: LTL 5,000 + EUR 3,000 x 3.4528 = LTL15,358.40
Sum insured: LTL 15,358.40
Insurance benefit: 10,000 x100% + 5,358.40 x90% = LTL 14,822.56
As the sum insured keeps growing depositors who have larger deposits will benefit from better insurance cover.
The benefit payable to a depositor holding a deposit described in the first example will be as follows:
10,000 x100% + 40,000 x 90% = LTL 46,000 (1 January 2004 – 31 December 2006)
10,000 x100% + 50,000 x 90% = LTL 55,000 (1 January 2007 – 31 December 2007)
