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Deposit Protection Scheme

Deposit Guarantee Schemes in Ireland

This document has been put together by Opes Wealth Trust to outline the various cash deposit guarantee schemes that currently exist in Ireland. At present there are three deposit guarantee schemes which may apply to cash deposit holders in Ireland which are outlined below.

1. The Irish Deposit Guarantee Scheme (DGS)

    This is operated by the Central Bank of Ireland and it guarantees total deposit amounts up to €100,000 per depositor in a bank or credit union. The DGS has no time limit and it provides a guarantee by the Central Bank of Ireland to private individuals, sole traders, partnerships, small companies and certain types of pension funds with deposits of up to €100,000. Any excess above this level is not covered under this scheme (DGS). A depositor does not have to be resident in Ireland or be an Irish citizen to claim under the scheme as long as the deposits are held in an institution that is part of the scheme.

     The institutions included in the DGS include the following:

    • ACC Bank
    • AIB
    • Anglo Irish Bank (deposits were moved to AIB on 1 July 2011)
    • Bank of Ireland
    • Bank of Scotland (Halifax)
    • Credit Unions
    • EBS Limited (EBS became a subsidiary of AIB on 1 July 2011)
    • ICS Building Society
    • Irish Life and Permanent (Permanent TSB)
    • Irish Nationwide Building Society (deposits were moved to Irish Life and Permanent on 1 July 2011)
    • KBC Bank Ireland plc (IIB Bank plc)
    • National Irish Bank (Danske Bank). In addition, Danske is covered by the Danish Guarantee Fund for Depositors & Investors
    • Postbank Ireland Limited
    • Ulster Bank

    Deposits at AIB are covered under the Deposit Guarantee Scheme up to a maximum of €100,000 per individual, so if the depositor had deposits in both AIB and Anglo prior to the Anglo transfer, the combined deposits will now be covered up to a maximum of €100,000 per person.

    Likewise, if a depositor had deposits in both Irish Nationwide Building Society and Irish Life and Permanent prior to the Irish Life and Permanent transfer, the combined deposits will now be covered up to a maximum of €100,000 per person.

    Deposits in EBS and AIB continue to be treated separately under the Deposit Guarantee Scheme. If a depositor has deposits in EBS and AIB these deposits will be covered up to a maximum of €100,000 per person in each institution.

    2. The Irish Government Eligible Liabilities Guarantee (ELG)

    The ELG Scheme was initially introduced by the Minister for Finance in an attempt to maintain the stability of the financial system in Ireland during the recent financial crisis. The ELG scheme was ended on March 29th, 2013 for new deposits. However, for Fixed Term Deposits that were put in place in the covered institutions between February 1st, 2010 and March 28th, 2013, the ELG scheme remains in place for each of these fixed periods. The scheme is managed by the National Treasury Management Agency (NTMA). The ELG scheme only guarantees deposits in excess of €100,000 (the DGS protects deposits up to €100,000) and provides an unconditional and irrevocable State guarantee up to the end of the fixed rate deposit periods that were established between February 1st, 2010 and March 28th, 2013.

    The seven institutions participating in the ELG Scheme include the following:

    • AIB
    • Bank of Ireland
    • Irish Nationwide Building Society (deposits were moved to Irish Life and Permanent on 1st July 2011)
    • Anglo Irish Bank (deposits were moved to AIB on 1st July 2011)
    • EBS Limited (EBS became a subsidiary of AIB on 1st July 2011)
    • ICS Building Society
    • Irish Life & Permanent (PTSB)

    3. Other Deposit Guarantee Schemes

    There are guarantees provided by other EU Member States covering deposits held by Irish depositors in such banks operating here. These include the following:

    Institution

    Terms

    Danske (t/a National Irish Bank)

    The first €100,000 per person is covered by the DGS. The Danish scheme also covers €100,000 per person as a back-up to the Irish DGS (only one overall €100,000 per person is covered)

    Rabobank

    The Dutch Central Bank Dutch Deposit Guarantee Scheme covers 100% of the first €100,000 per person.

    Investec Bank (UK) Ltd

    The UK FSA Financial Services Compensation Scheme covers 100% of the first £85,000 (or Euro equivalent) per person.

    Leeds Building Society

    The UK FSA Financial Services Compensation Scheme covers 100% of the first £85,000 (or Euro equivalent) per person.

    Northern Rock

    The UK FSA Financial Services Compensation Scheme covers 100% of the first £85,000 (or Euro equivalent) per person.

    Nationwide (UK) Ireland

    The UK FSA Financial Services Compensation Scheme covers 100% of the first £85,000 (or Euro equivalent) per person.

    Post Office Savings Bank

    The Irish Government guarantees all deposits in An Post without limit.

    Pension funds

    Only certain cash funds held with a limited number of life assurance companies in Ireland are covered under the DGS or the ELG. Pension fund investors should clarify with the relevant life company or a professional advisor with regard to what level of protection is in place for cash held in their pension funds. Cash deposits in small self-administered pension schemes held in the relevant banking institutions that are covered by the DGS and the ELG are protected under those guarantee schemes. It should be noted that, for the DGS, the self-administered pension scheme and the individual are regarded as having the same beneficiary so two separate €100,000 DGS limits do not apply within the same institution, only one amount of €100,000 per relevant institution falls under the Deposit Guarantee Scheme (DGS).

    Note

    This note has been prepared by Opes Wealth Trust with the sole purpose of providing a general outline of the various deposit based guarantees currently in place in Ireland. No direct action should be taken as a result of this information.