Fiona is a sole trader with €60,000 in a personal deposit account and €80,000 in a business deposit account at the same bank. What is the maximum total amount she could claim under the Deposit Guarantee Scheme for these two deposits?

• A. €60,000
• B. €126,000
• C. €140,000
• D. €100,000

Answer: (D)

The amount covered by the Deposit Guarantee Scheme is up to a fixed limit per depositor per credit institution. For Fiona, as a sole trader, the personal and business deposits to the same bank are considered one depositor. So, even though she has €140,000 in total across her accounts, only up to €100,000 is guaranteed for that bank. The remaining €40,000 would not be covered if the bank failed. If the deposits were at different banks, she could have up to €100,000 at each bank, potentially €200,000 in total.