Are your Savings Accounts Safe?

In recent months there have been rumours of banks in trouble . After Northern Rock’s problems last year – savers are finding out that the money they have in deposit accounts may not be as safe as they think in the event of a bank getting into trouble.

Irish banks are covered by the Deposit Guarantee Scheme which is administered by the Financial Regulator. Under this scheme – if a financial institution goes “under” – account holders will get 90pc of their deposits back but only up to a maximum of €20,000.
Be aware – that If you have money in several different accounts in the same bank, the €20,000 compensation limit applies to the overall amount on deposit. Joint accounts are proected up to €40000.

Credit Union savings are not covered by this scheme – and in fact there is no guarantee of any sort on Credit Uniion accounts – just a discretionary one .

Northern Rock is now guaranteed by the British government and so is probably one of the safer places to put your money. This guarantee may not last for ever.

An Post deposits (not Postbank) are guaranteed by the Irish Government

Savings in Rabobank are covered by a Dutch scheme, which guarantees 100% on the first €20,000 and 90pc of the next €20,000. So for deposits over €40,000, you would get back €38,000. (In an Irish bank you would get just 20k)

NEW – 100k Limit from Sat 20th SeptemberRead More

National Irish Bank, part of Danske Bank, is covered by the Danish compensation scheme. This guarantees payment of about €40,000 (300k Danish Krone)