What’s Happening with the Bank Guarantee?

Next week (28th March ) the   Eligible Liabilities Guarantee is ending – this is the one that covers most deposits over €100,000.
We wrote about the possible ending of this guarantee back in Nov 2012

The Dept of Finance said that the ELG will end  for  all new liabilities (deposits) from midnight on the 28th March 2013.  The Dept of Finance say that “liabilities incurred after January 2010 and before mid-night on the 28 March 2013 will continue to be guaranteed until their next maturity, subject to a maximum term of 5 years”
This means that anyone with instant access accounts with more than €100k will not be covered for more than €100k after 28th March

For the majority of people in Ireland who have savings of less than €100,000 – their money is still covered by the other scheme – the  ” Deposit Guarantee Scheme”. This scheme is backed by a fund held by the Central Bank – the  balance of this fund was  €403  million at the end of 2012 – but it will be called on to pay some €30million of the IBRC deposits after it’s liquidation earlier this month.

The scheme  covers deposits in all the Irish banks and Credit Unions.
How far would that €388 million would go in the event of a massive failure of a bank ?  For example PTSB has about €13 billion held in deposits.

All deposits with An Post, savings certificates, savings bonds etc. are fully guaranteed by the Irish Government, regardless of the amount.

If you  have a query on the ELG you can ring the following helplines (available from 9am and 5pm, Monday to Friday): Department of Finance Freephone 1800 30 3648 or alternatively the NTMA telephone +353-1-2384700.

For queries on the DGS Scheme you can  contact the Central Bank on 1890 77 7777.

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