Financial experts advise limits on single-bank deposits

Financial experts advise individuals to limit the amount of savings held in a single banking institution to the legal guarantee threshold of 100,000 euros per person, per bank. This protection mechanism within the European banking system ensures that deposits up to this limit are covered in the event of a bank's insolvency. However, amounts exceeding this threshold are not automatically protected, and recovery of such funds is uncertain if a bank fails.

To mitigate risk, experts recommend distributing large sums across multiple competing banks to ensure each deposit remains within the insured limit. For joint accounts, the protected amount can double to 200,000 euros.

Additionally, specialists suggest maintaining a liquid emergency fund equivalent to two or three months of net salary to cover unforeseen expenses without relying on credit. While keeping money in bank accounts provides security against insolvency up to the limit, experts also warn that excessive cash holdings in standard accounts may lose value over time due to inflation.