Credit union members can rest easy in the assurance that their savings are safe. Credit unions in Ireland, which are affiliated to the Irish League of Credit Unions, are secured in several ways:
- All officials of credit unions, whether volunteers or staff, must be fidelity bonded.
- All monies received in the credit union are properly recorded.
- Full financial statements are prepared and can be examined by members.
- Government Guarantee – Individual members’ savings are guaranteed up to €100,000 per member.
- Connemara Credit Union is regulated by the Central Bank of Ireland
The Deposit Guarantee Scheme
In general, the Deposit Guarantee Scheme (DGS) protects deposits belonging to individuals, companies, partnerships, clubs and associations. It excludes public authorities, insurers, pension funds, collective investment schemes, banks and certain other financial institutions.
The Irish DGS covers deposits in branches of credit institutions authorised in Ireland. You do not have to be resident in Ireland or be an Irish citizen to be eligible for DGS compensation.
A deposit means a credit balance on an account with a bank, building society or credit union that must be fully repaid.
The following is a list of deposit types that may be considered eligible for Deposit Guarantee Scheme (DGS) compensation:
- Current accounts
- Saving accounts
- Demand deposit accounts
- Notice deposit accounts
- Fixed-term deposit accounts
- Share accounts in a building society or credit union
- Deposit element of structured deposits/tracker bonds may also be eligible if the deposit element is repayable at par
Compensation payments will be based on details of eligible depositors and their accounts provided to the Deposit Guarantee Scheme (DGS) by the liquidator of the defaulting credit institution. The maximum amount of compensation from the DGS will be €100,000 per person per credit institution. Compensation will be based on the balance held in accounts on the date that the liquidator was appointed and will include any interest due on this date.
All balances held in the depositor’s name (including balances held in a joint account or in a beneficiary account) will be aggregated and one compensation payment will be issued to the depositor for the total of all their deposits.