The Deposit Guarantee Scheme (DGS) is the body in Ireland, that will pay compensation to eligible depositors if their financial institution is unable to repay deposit claims against it. The DGS is an independent body, set up by the Central Bank of Ireland.
Maintaining depositor confidence is a vital element of the financial services industry. The aim of this legislation is to raise customer awareness of the protection they have through the DGS and to provide consistent information at point of sale and on an annual basis.
All eligible deposits held with Ulster Bank Ireland DAC continue to be protected up to a total of €100,000 across all deposits and current accounts held with us.
For joint accounts the limit applies to each depositor separately (up to a total of €200,000, i.e. €100,000 per depositor)
In case of bank failure, depositors will be reimbursed within 15 working days from 1 January 2019 until 31 December 2020; within 10 working days from 1 January 2021 to 31 December 2023; and within 7 days from 1 January 2024 onwards, save where specific exceptions apply
The DGS Depositor Information Sheet contains further details, customers can also visit the DGS website.
The DGS Limit is €100,000 per person, per authorised firm. The limit applies to individuals not accounts.
This means for joint accounts the limit applies to each named account holder. So, for example, if you have a joint account with your spouse or partner, and no other accounts of your own, you could each be covered up to €100,000 under the deposit limit. That means protection of up to €200,000 in a joint account.
Eligible deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, without legal personality, are aggregated and treated as if made by a single depositor for the purpose of calculating the limit of €100,000.
“Temporary high balances” are eligible deposits connected with certain events including:
Certain transactions relating to the depositor’s current or prospective main residence or dwelling;
A death, or the depositor’s marriage or civil partnership, divorce, retirement, dismissal, redundancy or invalidity (referred to as “life events”);
The payment to the depositor of insurance benefits or compensation for personal injury, criminal injuries or wrongful conviction.
These are protected above €100,000 and up to a limit of € 1m (although no limit will apply to the compensation payable for a “temporary high balance” arising from a payment in connection with personal injury or incapacity).
They are protected for six months after the amount has been credited to the depositor’s account or for six months from the first date on which the depositor becomes legally entitled to the eligible deposit (for example, on the date of completion of a residential property purchase).
Alternatively, for customers who receive paper statements, you will see the above paragraph on your statement and you will also receive the Depositor Information Sheet as an annual insert with your statements. A small number of customers will receive a letter referencing their account with the Depositor Information Sheet insert on an annual basis.