Deposit Guarantee

March 25, 2013

As you may be aware, the Minister for Finance recently announced the ending of the Eligible Liabilities Guarantee Scheme (ELG) under which the Government has guaranteed all deposit holders for the full amount of their deposits in certain Irish banks, namely, Bank of Ireland, AIB and Permanent TSB.

The ELG worked in conjunction with the Deposit Guarantee Scheme (DGS) which covers funds up to and including €100,000 per depositor, per credit institution.  Therefore, in the case of a joint account, up to €200,000 in cover in that particular bank. The ELG guaranteed all deposits in excess of the amounts covered under the DGS.

Thankfully, due to the improved standing of Ireland on the international marketplace, the ELG is no longer considered necessary.  However, the scheme will not officially close to new deposits until 28th March 2013.

Therefore, any funds placed on deposit in one of the aforementioned banks before that date will continue to be guaranteed by the ELG until their next maturity, subject to a maximum term of five years.

If you have funds to place on deposit or wish to avail of the guarantee for a period of up to five years, you should consider acting before 28 March 2013 in order to best secure your monies.

OBI Wealth Management Ltd holds an agency for Permanent TSB and currently has significant funds on deposit with PTSB through that agency at very competitive interest rates.

If you have any queries in relation to the above matters, please do not hesitate to contact any of the partners here in the office or Ivan Kennedy at 061 – 401122.