Following on from the introduction on 01/05/2021 of a Share Cap on all NEW members savings, the Board of Directors have taken the further difficult decision to introduce a monthly Savings Cap of €2,500 on all adult members starting on 18/08/2021.
All newly introduced limits on savings are explained below:
- A maximum shares/savings cap of €10,000 on all NEW Adult, Minor & Club Accountsopened on or after 1st May 2021
- From the 18th of August 2021 a Monthly savings limit of €2,500on Adult accounts (members aged 16 years and over) will be introduced. This savings limit will include lodgements to all accounts – personal shares, joint accounts and club accounts. The transactions will include over the counter transactions and electronic fund transfers.
- From the 18th of August 2021 a Monthly savings limit of €400on Minor accounts (aged under 16 years) will be introduced. The transactions will include over the counter transactions and electronic funds transfers.
Please be advised that the above limits are in addition to the current savings cap of €30,000 per member on adult accounts opened prior to 01/05/2021 and will be reviewed on an ongoing basis.
Connemara Credit Union Ltd is a safe, strong and secure financial institution and we have adapted our business over the years to ensure that we remain in this position. The pandemic has seen exceptional growth in savings in all financial institutions including Credit Unions.
The financial markets in which we operate pose new challenges to all Credit Unions. Member’s savings that are not on loan to other members are invested to generate income. Until recent years, these investments have provided substantial income.
However, due to the low interest rate environment, this income has now declined substantially with the banks charging Connemara Credit Union for holding your savings, which is an additional cost for your Credit Union.
There is a requirement to keep a minimum of 10% of our total assets including shares and deposits, in a regulatory reserve on an ongoing basis. This means for every €100,000 of additional savings, we must transfer €10,000 from our surplus income to our Regulatory Reserve as set out by the Central Bank of Ireland.
This lodgement cap is simply one more adjustment to ensure that we are prepared for the changing financial landscape in which we operate and the limit of €2,500 per month was chosen in an effort to be fair to all members.
As the financial climate changes, we can certainly revisit this issue when we believe it is in the best interest of the Credit Union and its members to do so.
Connemara Credit Union is a testament to what local people and communities can achieve and we look forward to your ongoing support, enabling us to continue to expand the range of financial services within your local community.
If you would like to speak to us about this change, please don’t hesitate to get in touch. You can call us at 095 21101 or email firstname.lastname@example.org
Frequently Asked Questions:
- Can I lodge €2,500 to each of my shares, Christmas savings club and visual savings card per month?
No – the €2,500 monthly limit applies to all savings accounts combined.
- Can I lodge €2,500 over the counter to my savings account and €2,500 via electronic funds transfer?
No – it can be a combination of both, but cannot exceed €2,500 in total.
- What happens if I am already lodging more than €2,500 per month?
You will be asked to reduce the amount you are lodging. If it comes in via EFT it will be returned to you.
- Can I lodge €2,500 per month into my single account and into my joint account?
No – it will be €2,500 in total either single or joint or combination of both.
- If I withdraw funds from my account during the month, can I then lodge again up to the €2,500 per month limit for example, can I lodge €2,500 per month and withdraw €500, can I lodge another €500?
No – €2,500 is the amount you can lodge regardless of how much you withdraw during the month.
- What happens if I send more than €2,500 per month to my savings account from my bank account via electronic funds transfer?
You will initially be contacted by a member of staff and funds will be returned.
- Can I lodge €2,500 to my own account and then €2,500 to my Child’s account?
No – there is also a cap of €400 per month on children’s accounts.
- What happens if I am paying my loan and saving and the amount exceeds €2,500 per month?
The €2,500 refers to savings only – there is no cap on loan repayments.
We will shortly be introducing separate BIC and IBAN for share and loan accounts.
- Can I make loan repayments which exceed more than €2,500 per month?
Yes – no limit on loan repayments
- What if I am getting my pension or salary paid into the Credit Union and it exceeds €2,500 per month or if there is 5 weeks in a month?
Please contact a member of staff in the credit union who will advise you of same.