In some cases, eligible deposits which are categorised as ‘temporary high balances’ are protected above £120,000 to the maximum limit of £1 million (or the currency equivalents) for 6 months after the amount has been credited or from the moment when such eligible deposits become legally transferable. Eligible deposits are classified as ‘temporary high balances’ if the cause of the high balance is a qualifying life event, such as the proceeds of a house sale, a redundancy payment or benefits that were paid when you retired.

The Gibraltar Deposit Guarantee Scheme cannot confirm the eligibility of a particular temporary high balance unless/until the bank has failed. This is because we’d need to review all the available evidence to check that there was a sufficient connection between the relevant life event and the sums in the depositor’s account.

There are some details to be aware of:

• You do not need to contact the DGS to make or register a THB claim unless your deposit taker has failed.
• The additional limit is per person, per qualifying life event. For joint accounts with a temporary high balance, each named person would benefit from DGS protection up to £1 million.
• The protection begins on the date the money becomes legally transferable to you, or from when it is first credited to your account or to a client’s account on your behalf. You can move the funds to another account in your name and maintain the protection, but the six-month period would not begin again.
• Proceeds from second homes or buy-to-let properties are not covered. If your temporary high balance exists because of a real estate transaction, it must relate to your main residence for DGS protection to apply.

Qualifying life events and evidence required

Eligible deposits connected with certain events to have caused a temporary high balance in your bank account might include:

• Real estate transactions (This does not have to be a Gibraltar property but must relate to your main residence).
• Benefits payable under an insurance policy.
• Personal injury compensation.
• Disability or incapacity (state benefits).
• Claim for compensation for wrongful conviction.
• Claim for compensation for unfair dismissal.
• Redundancy (voluntary or compulsory).
• Marriage or civil partnership.
• Divorce or dissolution of their civil partnership.
• Benefits payable on retirement.
• Benefits payable on redundancy.
• A claim for compensation in respect of a person’s death.
• Inheritance.
• Proceeds of a deceased’s estate held by their personal representative.

To prove a Depositor has held a temporary high balance, evidence will be required (but not limited to) the following:

• A property sale receipt or agreement.
• A court judgement.
• A will.
• A letter from an insurer regarding an insurance payout.
• A letter from a lawyer, conveyancer, mortgage provider, former employer, pension trustees.
• Court orders.
• Social security statements.
• Probate/letters of administration.
• Death/marriage certificate.
• Land registry records.

This list isn’t exhaustive and the evidence we need will depend on your individual circumstances.