Choice of bank: Deposit insurance crucial for construction projects

We never had the loan money in the account, but rather passed the installment invoices on to the bank and they paid.

Where do you all actually want to know where the money coming into the account is from?! What if it’s not a loan, but proceeds from something? Or the profit from the lottery? Or Or

So once again, joint account each 100,000€ per customer, so 200,000€.

The likelihood that there is more on a mortgage loan account is not high but already possible. However, I would rather open a savings account at some other bank and distribute the funds instead of limiting myself in the decision of the financing bank.

Regardless, depending on the bank, one should keep an eye on the additional securities and realistically ask oneself what one is afraid of. But before it costs you your sleep...

However, their deposit guarantee is 100,000 euros. Meanwhile, there will be considerably more in the account.

So: why should there be more euros there? The loan is not paid out to you but transferred directly according to the construction status report. According to your question, you yourselves probably won’t lose anything on this account?!

You must not always assume others are like you ;) For example, we received a lump sum of 100k at the start of construction and when that was gone, another 70k. So far, I have not provided a single invoice and transfer everything personally via online banking. I have not worried at all about deposit insurance. To me, it feels like the equivalent of insurance against lightning strikes outdoors.

An interesting as well as unusual question.

If I understand the OP correctly, the account is not only supposed to serve the loan, but also, for example, for equity capital deposited there. With a sufficiently large property value, it is then not impossible that the value exceeds 200K.

On the topic of deposit insurance:
200K are safe with a joint account, as face wrote. (pay attention to German deposit insurance). After that, basically nothing. Period (Google: Cyprus bank failure, for example).

Everything over 200K (now the question begins what if):
Building on that, there are further voluntary protection systems (savings banks, deposit protection fund of the German Banking Association, Protektor for insurance companies).
My assessment: In individual insolvencies, e.g. of smaller savings banks or smaller insurance companies, these systems apply. (a small number of savings banks go bankrupt per year, so this is nothing unusual)
In a banking and/or financial crisis where banks like Commerzbank collapse, they will bring nothing because they are not properly equipped for that.

Then it gets political.
My opinion: Here the principle of "closeness to the customer" could count.
Savings banks and cooperative banks, which are especially rooted in Germany and where federal states (savings banks) are partially owners, would be more likely to be saved. Deutsche Bank possibly with the explanation "no alternative." With subsidiaries of foreign European banks, it gets more interesting. Etc. Will the German state still help a German subsidiary of a Turkish bank? If the bank only has foreign protection (e.g. Austria), it also gets interesting.

If things go badly - see Cyprus - it could also come down to 100K or then 200K.
That probably also depends on many other factors, e.g. the creditor structure.
Many small savers (see Monte dei Paschi di Siena) rather argue for a rescue.

With all the risks that occur in construction, I see the issue of deposit insurance as a rather small risk. I would be interested in concrete risks such as construction delays, etc.

If the topic of deposit insurance worries you:
Find yourself a reputable German bank or, as face suggested, spread the amounts over 200K in increments of 100K across other overnight money accounts at other banks.