There are two Deposit Protection Schemes currently in operation in Ireland. If an event were to occur that would require compensation from the Schemes, the Irish Government, through a combination of the Irish Central Bank and the National Treasury Management Agency, would make the payouts due to depositors.
This is a high level overview of the two Schemes;
|
Scheme |
|
Expiry |
Guarantee Covers |
|
Deposit Guarantee Scheme |
(DGS) |
None |
Eligible* Deposits up to €100,000. For joint accounts each party is covered for up to €100,000. |
|
Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 |
(ELG) |
31st December 2012 |
Portion of all deposits above €100,000 and the first €100,000 where the Deposit Guarantee Scheme does not apply. |
*Under the Deposit Guarantee Scheme, Eligible Deposits include personal customers, sole traders and small businesses, partnerships, trusts, small companies, charities, voluntary organisations, and accounts held in trust by solicitors.
To be a small company at least two of these three conditions must be met;
1. Average employee numbers 50 or less
2. Balance sheet value not exceeding €1,904,607
3. Turnover for that year not exceeding €3,809,214
N.B. The ELG expiry is subject to six monthly review and approval by the European Commission.
What does this mean?
- The sum of balances across all of your eligible* current, demand deposit, notice deposits and fixed term deposit accounts of up to a total of €100,000 are cover under the DGS;
- Amounts above €100,000 are covered under the ELG until the 31st of December 2012. In the case of Fixed Term Deposit accounts which were invested after your deposit provider entered into the ELG Scheme (AIB being 21st January 2010 – PTSB being 04th January 2010) they are covered until their maturity up to a maximum of a 5 year term even if that is beyond 31st December 2012;
- FIXED TERM DEPOSITS INVESTED BEFORE JANUARY 2010 are not covered under ELG unless they have subsequently been re-invested.
You can check dates when participating institutions joined the ELG scheme on the website of the Department of Finance together with detailed FAQs.
In summary;
|
Your Account |
Demand Deposit & Current Account |
Notice Deposit |
Fixed Term Deposit (invested between January 2010 & 31/12/2012 |
|
€100,000 or less |
Eligible* Deposits covered under Deposit Guarantee Scheme |
||
|
Above €100,000 |
Covered by ELG until 31st December 2012 |
Covered by ELG until 31st December 2012.
If notice is served before 31/12/2012 deposit is covered until expiry of notice period. |
Covered by ELG until maturity up to a maximum of a 5 year term even if this is beyond 31st December 2012. |
|
Examples |
|||
|
Personal Customer with €250,000 |
. First €100,000 covered under DGS indefinitely
. Remaining €150,000 covered under ELG until 31st December 2012-01-03 |
. First €100,000 covered under DGS indefinitely
. Remaining €150,000 covered under ELG until 31st December 2012
. If one month’s notice is served on 13th December 2012, due to expire 13th January 2013, deposit is covered until expiry of notice period on 13th January 2013. |
. Fixed Term Deposit invested on 13th June 2012 for two years, maturing on 13th June 2014.
. First €100,000 covered under DGS indefinitely
. Remaining €150,000 is covered under ELG until 13th June 2014. |
For more information on these Schemes see http://www.itsyourmoney.ie/ or http://www.ntma.ie/
The information as set out above is for information purposes only and is correct as at the 31st December 2011. E & OE apply.