Irish Deposit Guarantee Scheme Q & A
Nelson Life have experienced an increase in the number of enquiries in relation to the current status of the The Irish Deposit Guarantee Scheme.
The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits.
Deposits up to €100,000 per person per institution are protected.
Note that company deposit protection is contingent on turnover.
The DGS is obliged to issue compensation to depositors duly verified as eligible within 20 working days of a credit institution failing.The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme.
Each credit institution is required to maintain a Deposit Protection Account (DPA) equivalent to 0.2 percent of their total deposits, in order to fund the DGS. The DGS is part of the Central Bank of Ireland’s strategy to ensure that the best interests of consumers of financial services are protected.http://www.centralbank.ie/paycurr/paysys/dgs/pages/about.aspx
Protected Depositors - if in any doubt ask your bank !
In general the DGS protects deposits belonging to individuals, small private-limited companies, partnerships, clubs, associations, schools etc.
It excludes deposits belonging to large and medium sized companies, public companies, public authorities, insurers, pension funds, collective investment schemes, banks and certain other financial institutions.
Deposits owned by directors and senior managers of a defaulting bank or building society and their close family are not protected by the DGS. This exclusion does not apply to credit unions.
The DGS covers deposits in branches of credit institutions authorised in Ireland. The residency of the depositor is not a factor in determining the eligibility of the deposit. You do not have to be resident in Ireland or be an Irish citizen to be eligible for DGS compensation.
What is Ireland’s credit rating?
Source RTE News 5 December 2014 - ratings agency Standard & Poor's has raised Ireland's long term sovereign credit rating to 'A', up from previous rating of 'A-'The firm also upgraded the country’s short term debt to ‘A-1’, up from ‘A-2’ and said it had a stable outlook on both categories.
State Savings
When you place your money in State Savings such as An Post – your money is placed with the Irish Government.State Savings is the brand name used by the National Treasury Management Agency (NTMA) to describe the range of savings products offered by the NTMA to personal savers.Source www.statesavings.ie : "When you put money into State Savings you are placing your money directly with the Irish Government. All State Savings money is under the management of the NTMA.The repayment of all State Savings money is a direct, unconditional obligation of the Government of Ireland.
There is no upper limit on the amount protected.
There is no expiry or end date for this protection."
Credit ratings for NTMAhttp://www.ntma.ie/business-areas/funding-and-debt-management/credit-ratings/ N
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