Deposit Guarantee & Joint Business Accounts

Hi

Just need to understand how the Deposit guarantee scheme works.

Say a private limited company with 2 Directors (equal shareholders) open a joint business account with say BoI in the name of their company, how does the scheme apply?

Does it apply

a) On the single entity, the company whose business account it is , upto maximum of 100,000
or
b) on each of the joint account holding directors, upto maximum of 100,000 for each?

wat would happen if the company account had 160,000 and the bank went bust?

company gets refunded 100,000 or each of the directors recoup 80,000 each?

It's complex.

For companies, the Irish Deposit Guarantee Scheme insurance, covers small companies only. It does not cover big companies.

Small companies, which meet at least two of the following requirements:
• a balance sheet total of less than €4.4m;
• turnover less than €8.8m;
• average number of employees less than 50.

Also, joint accounts is a personal deposit insurance coverage point, it is not really a business deposit insurance coverage point. Business deposits are treated for the purposes of the €100,000 limit as a single deposit. Normally.

Hence, if you are a small business, you probably have insurance up to 100,000 EUR only.

A way to get around that is to open a second account with a different bank.