AS part of their informative series of contributions, ODCL and Gerry Moran addresses queries around Government Guarantee schemes.
Q. My husband recently received a lump sum from his pension and we have decided to place the funds on deposit. However, I’m a little confused about the government guarantee scheme and want to make sure our money is safe – can you clarify?
Dear Reader
There are two Deposit Protection Schemes currently in operation in Ireland, the Deposit Guarantee Scheme and the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 also referred to as the ‘Government Guarantee’ scheme. The Deposit Guarantee Scheme protects eligible deposits in banks, building societies and credit unions authorised in Ireland up to €100,000 per account or €200,000 per joint account. Eligible deposits include personal deposits, sole traders and small businesses, partnerships, trusts, small companies and charities. So, if your combined deposits with one institution are less than €100,000, you are covered under the Deposit Guarantee Scheme. Institutions covered include ACC Bank, AIB, Bank of Ireland, Credit Unions, EBS, ICS, KBC Bank (Ireland) Ltd, Danske Bank, Permanent TSB and Ulster Bank. If your deposit with an institution is over €100,000, the remainder may be covered by the ELG Scheme. This only applies to banks and building societies but credit unions are not covered by this scheme. The present ELG Scheme commenced on 9 December 2009 and the current end date is 30 June 2012. This date can be extended further with EU state aid approval and any announcements regarding an extension will be made before then. Institutions covered by the ELG scheme include AIB, Bank of Ireland, EBS, ICS, and Permanent TSB. The ELG Scheme covers both demand and fixed term deposits up to a maximum of five years – different eligibility criteria applies to each type of account so it is important that your bank clarifies your exact position if your account is in excess of €100,000. All deposits in An Post are guaranteed by the State.
This is a reader’s service and is not intended to replace professional advice. Mantra Consultants T/A ODCL Financial Services and ODCL Mortgages is regulated by the Central Bank of Ireland.
