Deposit Guarantee Scheme Update – March 2013


From midnight 28th March, 2013, no new deposits made with Allied Irish Banks (AIB) plc, Bank of Ireland (BOI) plc, Permanent TSB plc or their subsidiaries EBS ltd. and ICS Building Society will be guaranteed under the Eligible Liabilities Guarantee Scheme. The removal of the guarantee will equally apply to all other categories of eligible liabilities in all participating Institutions in the ELG Scheme after midnight 28 March, 2013

The cessation of the ELG Scheme does not affect the Deposit Guarantee Scheme. Retail deposits with all credit institutions authorised in Ireland (including credit unions) up to and including €100,000 per individual per institution (€200,000 for joint accounts) are covered by the DGS. The DGS has no end date and monies up to the amounts indicated are protected at all times.


From the 29th March 2013 the following will apply:
Current Accounts & Demand Deposit Accounts:

Funds in these accounts will no longer be covered by the ELG.

Notice Deposit Accounts:

Funds on which notice has been served will be covered by the ELG for the duration of the notice period. Any other funds will no longer be covered by the ELG.
Fixed Term Accounts:

Funds invested prior to 29th March 2013 will be covered under the ELG until the fixed term maturity date (up to a maximum term of five years).


General Information on Deposit Guarantees

 Does the ELG Scheme cover all deposits? – (Please see note below relating to Corporate Deposits)

 Most personal deposits will continue to be guaranteed under the existing statutory €100,000 Deposit Guarantee Scheme (DGS) which covers 100% of retail deposits with all credit institutions authorised in Ireland (including credit unions) up to a maximum of €100,000 per qualifying depositor per institution.

The ELG Scheme only guarantees the balance of personal deposits in the participating institutions over the €100,000 limit of the DGS. A private individual with a deposit of less than €100,000 is guaranteed solely under the DGS. If, however, the same individual has a deposit of over €100,000, the first €100,000 will be guaranteed under the DGS and the balance that exceeds €100,000, will be guaranteed under the ELG Scheme.

The ELG Scheme will close to new liabilities from midnight 28th March 2013.


What guarantee applies for personal deposits in excess of €100,000?

As noted above, the ELG Scheme only guarantees the balance of retail deposits over the €100,000 limit of the DGS. The balance in on demand accounts or current accounts in an ELG Scheme participating institution in excess of €100,000 will be guaranteed until 28th March 2013 regardless of the date the account was opened.

The balance on fixed term deposits in excess of €100,000 opened with a participating institution during a period from the date the participating institution joined the ELG Scheme up to 28th March 2013 will be guaranteed for the full term of the deposit, up to a maximum deposit term of five years.


What guarantee applies for corporate deposits?

 The DGS applies to the first €100,000 of ‘small companies’.  A company is considered a small company if it satisfies at least two of the following conditions for the current year and the year immediately preceding that year:

(a) its balance sheet total for that year shall not exceed €1,904,607,
(b) the amount of its turnover for that year shall not exceed €3,809,214, and
(c) the average number of persons employed by the company in that year shall not exceed 50.

The ELG Scheme applies to the remainder of these ‘small companies’ deposits. 

For all other companies the ELG Scheme applies to the entirety of their deposits until 28th March 2013, or maturity and subject to a maximum of 5 years. 

The Scheme will close to new liabilities from midnight 28th March 2013.


Other Credit Institutions

Some Banks operating in Ireland are regulated in their home country and operate here under EU rules. Such institutions are not covered by the ELG, and are instead guaranteed by their own, domestic compensation schemes and where relevant for Irish accounts, the Deposit Guarantee Scheme (DGS).


Foreign Compensation Schemes and Participating Institutions Include:

UK Scheme: UK FSA Financial Services Compensation Scheme- covers deposits up to an equivalent of £85,000.

Institutions covered include: Investec Bank plc, Nationwide UK Building Society, Leeds Building Society and Northern Rock.

Dutch Scheme: The Dutch Central Bank Deposit Guarantee Scheme– similarly to the Irish DGS, the Dutch scheme guarantees 100% of the first €100,000.

Institutions covered include: Rabodirect.

Danish Scheme:

Deposits covered through combined protection under the Danish Guarantee Fund for Depositors and Investorand the DGS up to a maximum of €100,000 per depositor.

Institutions covered include: Danske Bank

 For further information please contact Aoibheann Daly on 01 6471200




All opinions and estimates constitute best judgment at the time of publication and are subject to change without notice. This document is not to be relied upon in substitution for the exercise of independent judgment. Nothing in this publication constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.  


January 27, 2012 @ 10:43 am

Bank Guarantee Scheme Update

• Deposit Guarantee Scheme (DGS) – This scheme covers deposits up to a maximum of €100,000 per depositor per institution and does not have an expiry date.
Eligible accounts up to €100,000 are protected under the deposit guarantee scheme, the balance being protected by the ELG scheme. Accounts covered include current accounts, demand deposit accounts, term deposit accounts, share accounts and deposit accounts.
Institutions covered by the DGS are ACC Bank, AIB, Anglo, Bank of Ireland, Bank of Scotland (Halifax), Credit Unions, EBS, Irish Life and Permanent, Irish Nationwide, KBC, NIB, Northern Rock, Pfizer International Bank Europe, Postbank, and Ulster Bank.
• The Credit Institutions Eligible Liabilities Guarantee (ELG) Scheme 2009 came into effect on 9 December 2009 with an initial expiry date of 29 September 2010 subject to review.
Since this date, the scheme has had its extension approved by the EU Commission on several occasions and in accordance with their practice of approving member state guarantee schemes for six month periods at a time.
Currently the ELG scheme extends to 31 Dec 2012. This date can be extended further with EU state aid approval. The next review of the ELG Scheme will take place in advance of 31 Dec 2012.
The “Eligible Liabilities Guarantee” covers Irish Retail, Corporate and interbank deposits. The Banks covered under the ELG scheme are Irish Life and Permanent, Bank of Ireland, AIB, ICS Building Society, Anglo Irish Bank, EBS and Irish Nationwide.
The ELG covers amounts over €100,000 on deposit with the institution covered by the scheme. The first €100,000 is covered under the deposit guarantee scheme, however if DGS does not apply the deposit will be covered under the ELG.
Account types covered under the ELG are demand deposits, fixed term deposits, notice deposit accounts, corporate and interbank deposits and debt securities. Fixed term deposits are covered up to maturity as long as the term is 5 years or less and the deposit is made before the end of the guarantee expiry date.

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