In light of the current global systemic banking crisis here are some of the answers to frequently asked questions on safety and guarantees of savings deposits in Ireland.
How much is protected?
Sept 17, 2008 The deposit protection scheme in most Irish banks and building societies only covers 90% of the deposit to a limit of €22,222 (€20,000) per depositor.
National Irish Bank (Danske) cover DKK 300,000 (approx. €40,540*) per depositor.
With Rabodirect the depositor is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the depositor’s next €20,000 also being guaranteed.
For Investec Bank read their terms of business.
Sept 21, 2008 In response to the developing situation the government has agreed to up the deposit protection scheme limit to €100,000.
Sept 30, 2008 A guide to the Government’s decision to guarantee deposits in six Irish-owned banks and building societies.
For more information contact your bank.
What about Northern Rock?
On Tuesday 9 October 2007, Northern Rock agreed guarantee arrangements with the Bank of England and HM Treasury. These arrangements remain in place at the current time.
- The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
- They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
- The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the UK Government, such arrangements would not be withdrawn without at least three months notice in any event.
Do Credit Unions have deposit protection?
Sept 17, 2008 No. Contact your local credit union for details.
If your credit union is a member of a trade body, the Irish League of Credit Unions (ILCU), continues to supervise its member credit unions. It runs a controversial stabilisation fund to provide discretionary support to troubled credit unions. It might, at its discretion, compensate savers up to €12,700 but this is NOT a guarantee of any kind.
The Credit Union Savings Protection Bill 2008 is currently in the Seanad.
Sept 21, 2008 €100,000 savings guarantee also extends to credit unions
Are my savings protected in An Post?
Sept 17, 2008 Confusingly the Post Office offers 3 separate savings methods in One Location.
An Post ( also known as An Post Savings and Investment)
- Prize Bonds
An Post Savings and Investment
Yes, savings are state guaranteed with An Post, however, interest rates are low, partially to reflect that guarantee.
Prize Bonds are capital guaranteed by the state but any return on that capital is a lottery.
The Prize Bond system is administered by Fexco and is explained Here.
Do not confuse An Post savings with POSTBANK even though both are sold and managed through the same post offices.
Sept 17, 2008 Postbank is a 50:50 joint venture between An Post, whom you know, and Fortis, which ranks among the top 15 financial institutions in Europe and are present in over 50 countries worldwide.
Postbank is regulated by the Financial Regulator and is a member of the Deposit Protection Scheme maintained by the Central Bank of Ireland. Details of the protection scheme are here.
Oct 03, 2008 Dutch government takes over Fortis units
Contact An Post for more information.
Sept 19, 2008 How to protect your savings
Sept 23, 2008 Banks report deposit surge as protection limit is raised