Government Guarantee Irish Deposits - Grossed up interest amount also guaranteed?

[Mo Chara]

Hi

Does the government guarantee for Irish deposits just cover the actual capital amount deposited or the inherent grossed up interest amount?

i.e. If 1000 at 5% interest is deposited and the bank fails after a year, will the amount you get back be 1000 or 1050?

Thanks

 

[messyleo]

To be honest I'd say that's the least of your worries if the situation arises.

You might need to contact the Regulator on this one, but I imagine (I'm guessing though!) that it would just be the amount of money actually *in* the deposit account at the time, although it is a tricky one / hard to know.

 

[majik]

I would say it applies only to the interest that has been applied to the account and has had DIRT deducted from it. Good if your interest is applied monthly, bad if it is yearly.