- Has the Deposit Guarantee Scheme (DGS) ever been invoked?
The DGS was activated following the liquidation of IBRC in February 2013 and Berehaven Credit Union in July 2014 and Rush Credit Union in November 2016.
On 7 February 2013 the Minister for Finance appointed Kieran Wallace & Eamonn Richardson of KPMG as Special Liquidators to IBRC Limited. As a result the Deposit Guarantee Scheme (DGS) was activated to protect deposits of eligible IBRC depositors. To date the DGS have made compensation payments totaling €36 million to IBRC depositors.
Berehaven Credit Union
On 23 July 2014 the High Court approved the appointment of a provisional liquidator to Berehaven Credit Union. As a result the Deposit Guarantee Scheme (DGS) was activated to protect deposits of eligible Berehaven Credit Union depositors. The DGS completed the processing of payments to members of Berehaven Credit Union on 1 August 2014. Payments were issued to over 3,500 members and amounted to approximately €11 million.
Rush Credit Union
On 2nd November 2016 the High Court approved the appointment of Joint Provisional Liquidators to Rush Credit Union. Following the appointment of the Joint Provisional Liquidators, the Deposit Guarantee Scheme (DGS) has been activated. To date the Deposit Guarantee Scheme (DGS) has issued compensation payments by cheque to approx. 9,700 members. The total amount of compensation paid to date amounts to €22.3 million representing 98% of deposits covered by the Scheme.
- How are the accounts of sole traders treated by the DGS?
Sole traders with both personal and business accounts at a credit institution (which are eligible for DGS compensation) will be issued with one payment up to a limit of €100,000.
- How are the accounts of partnerships treated by the DGS?
If a depositor has personal accounts with a liquidated credit institution and also holds a business partnership account, the DGS will treat the business and personal accounts separately. The depositor (partner) will receive a separate cheque up to the limit of €100,000 for their personal accounts. Compensation for the business account will be paid separately to the partnership, up to a limit of €100,000.
- Are pensions/retirement funds covered by the DGS?
The DGS does not protect pension schemes or retirements funds other than Small Self- Administered Pension (SSAP) schemes. Non SSAP personal pensions and retirement funds e.g. Active Retirement Funds (ARFs) are considered investment products so are not covered by the DGS.
- Are tracker bonds covered by the DGS?
The deposit element of tracker bonds (also known as a structured deposit) qualifies for compensation under the DGS up to €100,000 if the holder is eligible and the deposit element of the tracker bond is repayable at par. The index linked element of the tracker bond is not protected.
- I have €500,000 in my current account that I believe qualifies as a temporary high balance. In the event of a DGS invocation would I have to apply for compensation?
In the event of a DGS invocation, the DGS will make temporary high balance (thb) claim forms available on this website.