Deposit Guarantee Scheme in Ireland: Central Bank Guide for Banks, Credit Unions and Savers

The Deposit Guarantee Scheme (DGS) in Ireland is a consumer protection scheme administered by the Central Bank of Ireland. It is designed to protect eligible depositors if a bank, building society or credit union authorised by the Central Bank is unable to pay out their deposits. This guide explains in outline who it covers, how it is set up in law and how a payout has worked in practice, for savers, finance teams and staff in Dublin and across Ireland who need to explain it accurately.

It is a general guide, not financial or legal advice. Coverage limits and rules can change, so always check the Central Bank's DGS page on the day you rely on it. For how credit unions are regulated more generally, see our guide to credit unions and Central Bank regulation and governance.

What the scheme is and who runs it

The Central Bank administers the scheme and the covered credit institutions fund it. The legal basis is the European Union (Deposit Guarantee Schemes) Regulations 2015 (S.I. No. 516 of 2015), made to give effect to Directive 2014/49/EU on deposit guarantee schemes. On the Irish Statute Book the Regulations show a signing date of 16 November 2015 and came into operation on 20 November 2015. The version of the Regulations on that site is the instrument as made, so check for any later amendments before relying on a specific provision.

Under the Regulations, the Central Bank is the designated authority. It supervises the scheme, manages the fund and makes repayments, and the competent authority makes the determination that a deposit is "unavailable". The EUR-Lex record for the Directive shows it was adopted on 16 April 2014 and published in the Official Journal on 12 June 2014.

Who and what is covered

According to the Central Bank's consumer pages, the scheme protects eligible depositors whose bank, building society or credit union cannot pay back their savings. Current accounts, deposit accounts and share accounts held at these institutions are within its scope, and the Central Bank's explainer says this includes money in a current account.

Two further points follow from the Central Bank's explainer and the Regulations:

• Only authorised institutions. The scheme covers deposits with firms authorised by the Central Bank. Deposits with institutions authorised in another EU Member State fall under that country's deposit guarantee scheme.
• Eligibility rules sit in the Regulations. The Central Bank's consumer pages do not list exclusions. The Regulations contain provisions on the eligibility of deposits (Part 4, Regulation 10) and on the coverage level (Regulation 11), so anyone with a complex position, such as a business, a trust or a joint account, should check those provisions and the Central Bank's guidance rather than assume.

The coverage limit

The Central Bank's DGS page describes protection of up to €100,000 per person per institution. Citizens Information, on its credit unions page (edited 6 March 2024), also gives the figure as up to €100,000 of deposits per institution. The Regulations, as made, aggregate a depositor's deposits at the same credit institution when applying the limit. The practical consequence is that the limit is measured per institution, not per account.

These figures are shown on the official pages at the time of writing and may change. Our suggestion: anyone holding large balances should check the Central Bank's current page, and ask each institution for its depositor information sheet, before deciding how to spread funds.

Credit unions and the DGS

Citizens Information states that credit unions in Ireland are covered by the Deposit Guarantee Scheme and that the Central Bank administers it. The Regulations define authorised institutions to include credit unions registered under the Credit Union Act 1997, and they treat shares in credit unions, other than those of a capital nature, as deposits. Citizens Information also lists "protect members' savings in each credit union" among the main functions of the Registrar of Credit Unions, without describing how that works in detail.

Governance and prudential rules for credit unions are a separate subject from the DGS, and our credit union guide linked above covers them.

How a payout works

The Central Bank's general pages do not set out the payout process step by step. The Regulations deal with it in a part on repayment, which covers determining the repayable amount, repayment itself, claims and the administration of payments. They set repayment periods in working days after the relevant decision date. Because periods and transitional provisions have changed over time, check the current legal text for the period that applies today.

A real example is the Central Bank's press release of 13 July 2020 about Drumcondra and District Credit Union. It says the DGS had been invoked on 2 July 2020 and that payments by cheque had issued to approximately 4,600 members. It also says the DGS may need more information before paying some members, for example where a member had died and the funds belonged to their estate, or where address details needed updating. A practical approach: members and customers can help themselves by keeping contact details and, where relevant, estate information up to date with their institution.

What institutions must tell depositors

The Regulations include a part on depositor information. As made, they require credit institutions to give depositors a prescribed information form before a deposit contract is entered into, and to obtain an acknowledgement. They also require statements to confirm which deposits are eligible and the scheme's website to be given to depositors at least annually. A form is set out in a schedule to the Regulations.

For staff who deal with customers, this matters in practice. Our suggestion: staff should be able to point people to the right document and avoid describing the scheme in their own words in a way that overstates it. For the Central Bank's wider conduct expectations for regulated firms, see our post on the Consumer Protection Code and staff training.

The DGS compared with other compensation schemes

The Central Bank's explainer also describes two other compensation schemes for customers of authorised firms. The Investor Compensation Scheme applies to clients of authorised investment firms such as stockbrokers and investment managers. The Insurance Compensation Fund applies to consumers of authorised non-life insurers that go into liquidation. The Central Bank's explainer says that if an investment qualifies under both the DGS and the Investor Compensation Scheme, the Central Bank decides which one pays. This guide does not cover those schemes in detail; use the Central Bank's explainer for their conditions and limits.

Where the DGS fits for businesses

Businesses and their finance teams sometimes assume the DGS answers every question about counterparty risk. The pages above describe a scheme for eligible depositors and a per-institution limit, and they do not say how the scheme applies to every type of business depositor. If your company holds significant balances, check the eligibility provisions and ask your bank how the scheme applies to you. For funding rather than deposit protection, see our guide to SBCI and Enterprise Ireland business finance supports.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

Who administers the Deposit Guarantee Scheme in Ireland?

The Central Bank of Ireland administers it. Under the 2015 Regulations the Central Bank is the designated authority, and covered institutions fund the scheme.

Are credit union savings covered?

Citizens Information states that credit unions in Ireland are covered by the scheme, and the Regulations treat credit union shares, other than those of a capital nature, as deposits.

Is the limit per account or per institution?

The Central Bank describes the limit as per person per institution. The Regulations, as made, aggregate a depositor's deposits at the same institution. Check the Central Bank page for the current figure.

What if my bank is authorised in another EU country?

The Central Bank's explainer says deposits with institutions authorised in another EU Member State fall under that country's deposit guarantee scheme.

Where do I find the current rules?

Use the Central Bank's DGS page, Citizens Information, and the Regulations on the Irish Statute Book, and check for any later amendments.

The scheme is a safety net, not a substitute for choosing institutions carefully. Confirm the current limit and eligibility rules with the official sources before you advise anyone.