BoI Terms and Conditions

My friend deposited over 150k with the BoI and they send him terms and condition and under the compensation scheme it says stating that his deposit is only covered of 90% of all deposit held by one depositor subject to a maximun compensation of 20k in euros.

it also goes on the say that the information in the terms and conditions are correct as of July 2007.

I was under the impression that the all deposits are covered 100% with banks in Ireland. Is this not correct now.

What you friend appears to have received is information on the old scheme (i.e., 90% coverage up to a maximum of €20,000). The deposit protection limits were changed last year. Now 100% of the first €100,000 is covered by the Irish deposit protection scheme (note not all banks are necessarily included in this, for example NIB, Rabo and Investec are covered by foreign schemes - though they can top up their coverage to be in line with other banks operating here). Secondly, the governments bank guarantee scheme insures the liabilities of banks covered by the scheme (BOI is one of them)are guaranteed by the state up to end September next year.


So the first €100,000 is covered by the deposit protection scheme with the remaining be covered by the State for another 18 months.

skrooge said:

What you friend appears to have received is information on the old scheme (i.e., 90% coverage up to a maximum of €20,000). The deposit protection limits were changed last year. Now 100% of the first €100,000 is covered by the Irish deposit protection scheme (note not all banks are necessarily included in this, for example NIB, Rabo and Investec are covered by foreign schemes - though they can top up their coverage to be in line with other banks operating here). Secondly, the governments bank guarantee scheme insures the liabilities of banks covered by the scheme (BOI is one of them)are guaranteed by the state up to end September next year.


So the first €100,000 is covered by the deposit protection scheme with the remaining be covered by the State for another 18 months.

Click to expand...

Thanks for your reply skrooge, I feel that BoI should have explained that with their term and condition and it was very remiss of them not do so.

So, the full amounts are covered by the government and there is no need for my friend to worry whatsoever.

Banks are not allowed to promote the guarantee scheme in their marketing literature, so its a problem across all banks and Irish building societies....they're not allowed, as government dont have a plan beyond sept 2010 at this stage as we all know. Northern rock got their wrists slapped here and in UK last year for stating government guarantee so would seem that Irish government have instructed irish banks to follow suit to allow for fair competition.