Deposits with Irish banks-Guarantees available
Issues to be considered by deposit holders in relation to guarantees!
Up until 30 September 2008 deposits with Institutions listed below were guaranteed up to €100,000 under the deposit guarantee scheme.This scheme remains in place with no time limit.
During the banking crisis that gripped the world in 2008 the Government extended the guarantee on deposits to balances over €100,000.Whilst the €100,000 guarantee remains and will remain into the future,the special guarantee extension introduced in September is due to expire later this year.
Holders of deposits greater than €100,000 may wish to consider taking advice with a view to spreading their deposit holdings in line with changing conditions .
If your deposit with an institution listed below is less than €100,000 it is guaranteed under the Deposit Guarantee Scheme .
- ACC Bank
- AIB
- Anglo Irish Bank
- Bank of Ireland
- Bank of Scotland(Halifax)
- Credit Unions
- EBS Building Society
- ICS Building Society (The Mortgage Store)
- Irish Life and Permanent (Permanent TSB)
- Irish Nationwide Building Society
- KBC Bank Ireland plc (IIB Bank plc)
- National Irish Bank (Danske Bank) is also included. In addition Danske is covered by the Danish Government guarantee scheme.
- Northern Rock (also covered by the UK scheme)
- Pfizer International Bank Europe
- Postbank Ireland Limited
- Ulster Bank
On 30 September 2008, the Government announced a guarantee that covers, among other things, all deposits greater than €100,000 with certain institutions. The guarantee is based on two pieces of legislation :
- The Credit Institutions (Financial Support) Scheme 2008 (CIFS Scheme)
- The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (ELG Scheme).
The ELG Scheme commenced in December 2009 and will be subject to ongoing six monthly approval from the European Commission. Currently, it is due to run until 31 December 2010.
What is covered under the guarantee?
The following institutions are covered by both schemes (the CIFS Scheme and the ELG Scheme):
- AIB
- Anglo Irish Bank
- Bank of Ireland
- EBS Building Society
- ICS Building Society
- Irish Life & Permanent plc
- Irish Nationwide Building Society
Credit Unions are covered under the Deposit Guarantee Scheme for up to €100,000 per person.
All deposits in An Post are guaranteed by the State.
The first €100,000 in all banks and building societies listed is covered by the Deposit Guarantee Scheme and any balance in the institutions listed above is covered by either the CIFS Scheme or the ELG Scheme.
Demand deposit accounts
This includes all deposits where you can withdraw your money on demand (including current accounts). If you have a demand deposit with a balance greater than €100,000, the first €100,000 is covered under the Deposit Guarantee Scheme and there is no time limit to that scheme. The Government guarantee covers the balance until 31 December 2010.
Term deposit accounts
If you have a term deposit with a balance greater than €100,000, the first €100,000 is covered under the Deposit Guarantee Scheme.
The treatment of the balance depends on whether your institution was a member of the ELG scheme when you placed your deposit. Amounts over €100,000 will be guaranteed under the ELG Scheme until the account matures (up to a maximum five years) as long as your institution was a participating member of the ELG Scheme on the date you made your term deposit and your deposit is made before 31 December 2010.
If you made your term deposit before your institution joined the ELG Scheme, amounts over €100,000 will be guaranteed under the CIFS Scheme until 29 September 2010.
If you have a term deposit over €100,000 and your bank is not a member of the CIFS Scheme or the ELG Scheme, check with your financial institution as you may be covered under a scheme in another country.
You can check dates when participating institutions joined the ELG scheme on the website of the Department of Finance together with detailed FAQs.