The Deposit Guarantee Scheme [DGS] is a permanent scheme set up by Statute and operated by the Central Bank of Ireland. It’s designed to protect deposits in the event of a bank or building society being declared insolvent. The maximum compensation limit is €100,000 per deposit, per institution covered by the scheme. In the case of a joint account both parties are covered independently giving them a limit of €200,000 per institution. Some deposits may also be covered by the ELG which finished on the 28th March last, where they are term accounts.

It’s important to note that the transfer of deposits from IBRC [formerly Anglo Irish Bank] to AIB and from Irish Nationwide to Irish Life and Permanent that the maximum compensation is now only €100,000 in total because both Irish Nationwide and IBRC are no longer going concerns.

For example, a depositor with €100,000 in AIB and €50,000 in IBRC, post transfer the depositor will only receive compensation of €100,000 and be at a loss for the other €50,000. The same applies to deposits with Irish Nationwide and Irish Life and Permanent.

EBS deposits are covered by the DGS as they operate under their own banking license although they are now part of AIB.

The banks covered are ACC, AIB (including IBRC) and EBS, Bank of Ireland, Credit Unions, ICS Building Society, Irish Life and Pensions (including Irish Nationwide), KBC, Danske Bank and Ulster Bank. Other banks operating in Ireland will be covered by compensation schemes in their home countries.

It is important that consumers are aware of the prevailing guarantees, particularly given the transfers of IBRC and Irish Nationwide deposits.

Account types covered include, Current accounts, Demand deposit accounts and Term deposit accounts. Share accounts and deposit accounts with building societies together with Share accounts and deposit accounts with credit unions are also included.

Those who are eligible to claim under the DGS are, all personal customers, sole traders and small businesses, partnerships, small companies, charities, voluntary organisations and Accounts held in trust by solicitors (e.g. personal injury claims)