01 July 2024
Savings Cap Removal
From 1st July 2024, the amount of savings a member can hold in their Comhar Linn account will increase from €40,000 to €100,000.
Why are we removing the Savings Cap?
In June 2020, we introduced a savings cap, restricting savings in regular and special share accounts to €50,000. By June 2022, this cap was reduced to €40,000, and a monthly lodgement limit of €10,000 was also established. Despite the increase in member savings during this period, the overall investment environment was not a favourable one. The returns on savings and investments remained minimal due to persistently low interest rates, and in some cases, negative interest rates.
Our guiding principle in making decisions is always to protect the long-term best interests of all members while ensuring we remain operationally sound.
What has changed?
We have continuously monitored the situation to remove the cap when conditions allow. All decisions are made with our members' best interests in mind.
Thanks to the savings caps and improved investment returns, we have successfully recovered our Capital position, which now stands at just over 14%.
The current interest rate environment is attractive, with a blended rate of return of around 1.9% YTD. Additional funds from members will help augment our surplus and further protect our capital.
Considering current saving trends, we have conducted a recent exercise to forecast our Capital position. This includes a scenario where we lift the savings and monthly lodgement cap, confirming that we will remain sustainable even without these restrictions.
What is the impact for members?
- Increased Savings Limit: All members can now save up to €100,000 with us. The monthly lodgement limit has been removed.
- Maximum Savings Amount: Under the Credit Union Act, the Central Bank limits individual members’ savings to €100,000. The maximum combined amount an individual member can hold in a Regular/Special Share/Current Account with us is €100,000. This rule applies to all accounts opened since January 1, 2016. However, if a member opened a share account pre-2016 and a current account post-2016, they can hold €100,000 in both accounts.
Thank you for your continued support and trust in our credit union. Let's continue to build a strong financial future together!
FREQUENTLY ASKED QUESTIONS:
Below are more details on the Savings Cap; we hope that any questions you have are addressed within the FAQ section, but if not please feel free to contact us with your query. Phone us on 01 8731101 or email info@intocreditunion.ie
We appreciate your support for our savings cap. You can reinvest a lump sum into your account. We apologise for any inconvenience caused in the past.
We aim to make things easy for you. You can change your DAS (deduction at source) contribution over the phone. We will need to verify your identity to proceed with your request.
Yes, all savings are secure. We are a financially strong and stable credit union. Your savings are guaranteed by the Government Deposit Guarantee Scheme up to €100,000, operated by the Central Bank of Ireland. This scheme ensures that individual member’s funds in any one credit institution are covered up to €100,000. For joint accounts, the limit of €100,000 applies to each individual member.
It is too early to determine the dividend rate, if any, that the credit union will pay out. We will communicate directly with members to inform them about the dividend once we are in a position to do so.
