🏦 BanksWhat is the Deposit Guarantee Scheme and what does it protect?
The Deposit Guarantee Scheme (DGS) is a statutory protection that guarantees your money on deposit if a bank, building society or credit union fails or the Central Bank determines it cannot repay. In Ireland the scheme is administered by the Central Bank of Ireland and funded by the institutions themselves. Cover is up to €100,000 per person, per institution, and payment is due within 10 working days (moving to seven). This is the reason a savings account counts as a safe place for a rainy day fund. In this article we go through exactly what is covered, how the limit works, and what to consider if you hold large amounts.
What is covered and how much
The scheme covers money in current accounts, deposit accounts, demand deposit accounts and most other deposit accounts held with covered institutions. The limit is €100,000 per person, per institution — if you hold accounts at two covered banks you are protected up to that amount at each.
A joint account is covered up to €100,000 per account holder, so a couple with a joint account is covered up to €200,000 on that account. For certain life events — the proceeds of selling your main home, an inheritance, an insurance payout for personal injury — a temporary higher balance is covered for up to six months.
What the scheme does not protect
Investment funds, shares and other securities are not covered by the DGS — they are held separately from the bank's own money and belong to you, but if the investment firm cannot return them (for example due to fraud) a separate Investor Compensation Scheme covers up to €20,000. Neither scheme covers the investments falling in value.
The DGS also does not protect you against low interest, against inflation, or against losing money on an investment. It applies only to the scenario where the institution itself fails.
If you hold large amounts
If you hold more than €100,000 on deposit you can spread the money across several covered institutions to stay under the limit at each. Note that some brands share a single banking licence — then they count as one institution, and the limit applies in total.
Always check that a provider offering a high deposit rate is actually covered by a deposit guarantee scheme (Irish or from another EU country) before you put money in. The information should be clearly stated on the bank's site.
Frequently Asked Questions
- How quickly do I get my money if the bank fails?
- The scheme is required to pay compensation within 10 working days of the guarantee being triggered, moving towards seven. You do not normally need to apply — payment is made automatically based on the bank's records.
- Does the limit apply per account or per person?
- Per person and per institution, not per account. If you have three accounts at the same bank they are added together and protected as one, up to €100,000. A joint account is covered up to €100,000 per account holder.
- Are foreign banks operating in Ireland covered?
- Banks from other EU countries are covered by their home country's deposit guarantee scheme, which has the same €100,000 minimum. Check which country's scheme applies before you put money in.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the Department of Social Protection, the Central Bank of Ireland, Revenue, the Deposit Guarantee Scheme) before making a decision.
