In Montenegro money in a bank is insured up to 50,000 euros per depositor at each bank, regardless of the number of accounts, and the Deposit Protection Fund must pay it out within seven working days of a bank failure. Money from selling a home you lived in, severance pay, a divorce or an insurance payout is protected by an extra 30,000 euros for six months after it is credited. Since 28 May 2026 deposits of shareholders with 10% or more, bank board members and auditors, previously excluded, are also protected. Interest on savings is taxed as capital income at 15%, withheld by the bank. The average deposit interest rate in June 2026 was 0.30%.
This guide explains how much money is protected, how the guaranteed deposit is calculated, what the temporary high balance is, who is not protected, how payout works and how interest is taxed.
How much money is protected?
- The guaranteed deposit is 50,000 euros per depositor at one bank, regardless of the number and type of accounts; when Montenegro joins the European Union, the amount rises to 100,000 euros.
- Current and giro accounts and savings deposits of individuals and companies, residents and non-residents, are protected.
- Deposits in a foreign currency are paid out in euros at the Central Bank exchange rate on the day the protected event occurs.
- Protection is free for depositors, because the banks pay the premium to the Fund.
- A protected event occurs when the Central Bank opens bankruptcy proceedings against a bank or declares deposits unavailable.
How is the guaranteed deposit calculated?
- All deposits of one depositor at that bank are added up, including interest to the day of the protected event, and the depositor's matured debts to the bank are deducted.
- Interest on term deposits is calculated at the agreed rate up to that day, even if the term has not ended.
- Money on a joint account is split into equal shares, unless the holders prove different shares.
- A sole trader's business accounts are added to the same person's personal accounts.
- If you keep money in two banks, each is insured separately up to 50,000 euros.
What is the temporary high balance?
- On top of the basic 50,000 euros, an extra 30,000 euros is protected for six months after crediting if it comes from selling residential property where the depositor lived.
- The same applies to money from a marriage, divorce, retirement severance, dismissal, disability or death.
- The extra protection also covers insurance payouts and compensation to victims of crime or of errors by state bodies.
- The Fund's director decides on the right to this amount, and the decision can be challenged in an administrative dispute.
Whose deposits are not protected?
- Deposits of insurance companies, the state and municipalities, compulsory insurance funds, voluntary pension funds, investment firms and funds, banks and other financial institutions.
- Deposits from transactions that a court has finally linked to money laundering or terrorist financing.
- Deposits whose owner has not been identified by the day of the protected event, as well as bonds and other instruments issued by the bank itself.
- The amendment in force since 28 May 2026 deleted the exclusions for shareholders with 10% or more, board members, group companies, the bank's auditors and persons who contributed to the bank's poor condition, so their deposits are now protected too.
How does payout work?
- Within two working days the Fund announces in the press and on its website that a protected event has occurred.
- Within five working days the Fund chooses the bank through which it pays out and announces the place and start date.
- The money must be available within seven working days of the protected event; the deadline can be extended if the deposit is in a court dispute, under a freezing order or part of a temporary high balance.
- The right to payout expires three years after the protected event.
- All banks licensed by the Central Bank are Fund members: Addiko, Adriatic, CKB, Erste, Hipotekarna, Lovćen, NLB, Prva banka, Universal Capital, Zapad and Ziraat.
How is interest taxed?
- Interest is capital income and is taxed at 15% of the gross interest.
- The bank calculates and withholds the tax when paying interest, so the depositor receives the net amount.
- Since November 2025, interest on bonds issued by the state, the Central Bank or municipalities is not treated as capital income.
What are interest rates and how much is saved?
- The weighted average effective interest rate on deposits in June 2026 was 0.30%.
- Bank deposits at the end of June 2026 stood at 6,055.97 million euros, of which 84.27% were sight deposits and 15.48% term deposits.
- Among term deposits, those from one to three years (39.85%) and from three months to one year (37.80%) are the largest groups.
- The Central Bank prescribes how banks calculate and show the effective interest rate on deposits, so compare offers by the effective rather than the nominal rate.
Opening an account is covered in our guide to bank accounts for foreigners, and tax on selling a flat in our guide to capital gains tax. Bringing and paying cash is covered in our guide to bringing cash, and the annual return in our guide to the income tax return.
Frequently asked questions
How much money in a bank is insured in Montenegro? Up to 50,000 euros per depositor at each bank is insured, and money from selling a home you lived in has another 30,000 euros of protection for six months.
How many days does the Fund take to pay out deposits? The money must be available within seven working days of the day the Central Bank opens bankruptcy or declares deposits unavailable.
Are foreigners' deposits protected? Yes, deposits of individuals and companies, residents and non-residents alike, are protected.
What is the tax on savings interest? Interest is taxed at 15%, and the bank withholds the tax when it pays the interest.
Is money in a foreign currency protected? Yes, foreign currency deposits are paid out in euros at the Central Bank rate on the day of the protected event.
What is the average interest rate on savings? The weighted average effective interest rate on deposits in June 2026 was 0.30%.
Sources
The amount of protection, the temporary high balance, calculation, exclusions and payout deadlines are set by the Law on Deposit Protection (Official Gazette 72/2019 and 70/2026; Articles 6 to 9, 45 and 55), and the deleted exclusions by the Law amending the Law on Deposit Protection (Official Gazette 70/2026). Members and payout procedure are published by the Deposit Protection Fund. The 15% rate on capital income was introduced by an amendment to the Personal Income Tax Law (Official Gazette 146/2021), and the exemption for government bond interest by the 2025 amendment (Official Gazette 133/2025). Interest rates and deposits are published in the Central Bank Bulletin 7/2026. The information was checked on 27 September 2026. Fijaka is a classifieds platform; this text is not financial advice.