Irish Banks Deposit Guarantee Scheme: Deposits in Ireland

If you’re wondering about Irish banks deposit guarantee scheme, we’ve got you covered…

In this article we’ll share who is covered and who isn’t, which accounts get protection and don’t, and how much you can expect to get back when an Irish bank fails.

This will be especially interesting for anyone trying to open a European bank account for non-residents in Ireland.

Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.

Table of Contents

  1. Irish Banks Deposit Guarantee Scheme
  2. Bank Account Opening in Ireland 101
  3. Frequently Asked Questions
  4. Ready to Explore Your Options

Irish Banks Deposit Guarantee Scheme

The Irish Deposit Guarantee Scheme or the DGS works like deposit guarantees (or deposit insurance corporatations) in any other country.

In short, DGS provides depositors with a guarantee that their deposits will be protected up to EUR 100,000 per person per institution. That said, there are some nuances, which we’ll cover below.

With this in mind, lets take a look at the main considerations:

Covered Institutions

DGS covers deposits in Ireland at authorized Irish credit institutions, including banks, credit unions, and building societies. That said, DGS also covers deposits held in EU branches of these same institutions.

Covered Accounts

DGS does not provide coverage for all account types. Instead, they offer a list of specific accounts that will be covered in the event of a credit institution failing. Here is a current list of the accounts that will be covered:

  • Saving Accounts
  • Demand Deposit Accounts
  • Notice Deposit Accounts
  • Fixed-Term Deposit Accounts
  • Current Accounts
  • Share Accounts (Building Society or Credit Union)

Additionally, according to the DGS website, structured deposit or tracker bonds may also be eligible for coverage under certain circumstances.

Covered Clients

In terms of the specific clients that will be compensated by DGS, it’s important to note that you do not need to be an Irish citizen or a resident of Ireland. So, if you are a non-resident with an account at an Irish credit union with less than EUR 100,000 on deposit, your balance will be covered.

With this in mind, let’s take a closer look at the clients that are (and are not) covered by the Irish Banks Deposit Guarantee Scheme.

List of Client Types Covered by DGS

  • Individual account holders
  • Sole traders
  • Partnerships
  • Schools
  • Non-profit organisations (clubs, associations, charities, etc.)
  • Corporate entities
  • Certain funds held in trust
  • Certain self-administered pensions

List of Client Types Not Covered by DGS

  • Investment firms
  • Financial institutions
  • Insurance companies
  • Public agencies and authorities
  • Pension funds
  • Investment schemes
  • Individuals not identified via AML processes
  • Individuals convicted of (or charged with) money laundering
  • And more…

How DGS Compensation Works

DGS does not require depositors to request compensation in the event of a credit institution failing. Instead, they automatically issue payment for the balance held on deposit at the failed institution. That said, if you have changed any of your personal information (e.g. address) it is important that you contact DGS to provide them with updated details to ensure you receive your payment.

Bank Account Opening in Ireland 101

If you’re encouraged by the Irish banks deposit guarantee scheme, you may want to think twice before trying to open bank accounts in Ireland as a non-resident. The simple reason for this is that opening accounts here can be challenging.

In fact, while certain banks will accept both non-resident individual and business accounts, it can be very difficult to open accounts. Additionally, if you require remote opening, there are far easier EU banking options available.

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Frequently Asked Questions

Below are two of the most common questions that we receive from people looking to open a bank account in Ireland. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

Who is Eligible for Irish Bank Accounts?

Both non-resident individuals and companies can open bank accounts in Ireland. However, there are specific requirements that need to be met in both cases. For this reason, most non-residents will find that opening in other EU jurisdictions is often easier.

How Much Money is Covered From the Deposit Guarantee Scheme in Ireland?

The Irish Banks Deposit Guarantee Scheme (DGS) covers up to EUR 100,000 per person per institution. In theory, this means if you open multiple accounts at multiple Irish credit institutions with less than EUR 100,000 on deposit in each account, all of your accounts would be covered by DGS.

Ready to Explore Your Options?

If you would like assistance navigating your banking options at home or abroad, we can help.

You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.

But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.

Of course, if you have any questions, please contact us directly.

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