The Deposit Guarantee Scheme (DGS)
What is the Deposit Guarantee Scheme?
The Deposit Guarantee Scheme 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 under the scheme. The Deposit Guarantee Scheme is obliged to issue compensation to depositors duly verified as an eligible depositor within 10 working days of the credit institution failing.
The Deposit Guarantee Scheme is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme.
The following document outlines the basic details of the protection of eligible deposits in AIB:
Deposit Guarantee Scheme – Depositor Information Sheet
What types of deposits are protected under the Deposit Guarantee Scheme?
A deposit means a credit balance on an account with a bank, building society or credit union that the credit institution must repay under the legal and contractual conditions applicable. The following is a list of deposit types that may be considered eligible for DGS:
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
Credit balances on credit cards issued by credit institutions may also be eligible
What types of customers are protected under the Deposit Guarantee Scheme?
In general the DGS protects deposits belonging to individuals, companies, partnerships, clubs, associations, schools etc. 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.
The deposits of the following are protected:
Clubs, associations, schools and charities
Funds held in trust in client accounts by solicitors and other professionals may be eligible if the underlying beneficiaries are eligible in their own right
Small self-administered pensions
1 – Companies are covered as long as they are not a company that is on the exclusion list below.
What types of customers are not protected under the Deposit Guarantee Scheme?
Deposits placed by the following type of entities are not covered under the scheme:
Persons convicted of money laundering offences
Persons who have not been fully identified by the credit institution
Banks, building societies and central banks (including Credit Unions)
Investment Firms (Own funds)
Pension schemes and retirement funds (other than small self-administered pensions)
Collective Investment Schemes or UCITs
Financial institutions such as consumer credit providers, stockbrokers, money brokers & moneylenders
Central and local government authorities Public international organisations (e.g. IMF, UN, EU etc.)
For additional information on the Deposit Guarantee Scheme please refer to www.depositguarantee.ie