Deposit guarantee.

Discussion in 'Credit Union issues' started by DirectDevil, Nov 15, 2017.

  1. DirectDevil

    DirectDevil Frequent Poster

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    Two questions please ;

    1. Are savings deposited with a Credit Union guaranteed / backed like money in a bank ?

    2. If so, what is the limit of the guarantee ?
     
  2. Palerider

    Palerider Frequent Poster

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    886
    Yes, €100000 per account holder. €200000 in the case of jointly held accounts.
     
  3. DirectDevil

    DirectDevil Frequent Poster

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    Much obliged for that.

    I am researching this a for a relative who may have a lump sum of about €50,000 to park somewhere at no risk.
    Is there anywhere that I can check what dividends any particular Credit Union paid out in the past or do I need to ask each credit union ? His local credit union would probably be Blackrock, County Dublin as that is where he lives.
     
  4. Sue Ellen

    Sue Ellen Moderator.

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    7,908
    This AAM thread on rates paid for 2015 might help:
    https://www.askaboutmoney.com/threa...-union-dividend-for-2015.196754/#post-1455871

    I have an idea that there was another thread done by Brendan some time back but can't find it at moment.
     
  5. DirectDevil

    DirectDevil Frequent Poster

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    402
  6. noproblem

    noproblem Frequent Poster

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    Post office saving certs would be a better option as regards interest paid, the same safety risk but with a better return. Only thing is, you will have to leave them in for a few years. There's a 3 yr, 5 yr and 10 yr option as far as I know.
     
  7. DirectDevil

    DirectDevil Frequent Poster

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    You're right.

    He wanted to lodge the funds somewhere at short call with no risk to the capital. We checked out the Credit Union and found that it would not suit as the maximum cash deposit is relatively low.
     
  8. Ravima

    Ravima Frequent Poster

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    Prize bonds? Once you have them for the required period, you can cash in any time.
     
  9. fernrock

    fernrock Frequent Poster

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    As regards credit union savings.
    Some have put a cap on the max size of savings in an account.
    An elderly relation of mine had to bring her lifes savings below €30000.
    This was a life long member who relied on her local CU because of the human contact.

    That makes the €100000 guarantee irrelevant.
     
  10. 24601

    24601 Frequent Poster

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    55
    Yes, and more credit unions should be introducing such caps. Nearly all of their balance sheets are upside-down. They don't need the money and can't lend it out, so for the financial health of credit unions generally they shouldn't take it. I appreciate that there's many elderly people that use credit unions to save their pensions and do their bits and pieces etc. but there's other places that provide similar services such as An Post. Nearly all credit unions have bill pay facilities and other ancillary services so these could still be used by your relation?