Existing Deposit Protection Schemes:

•  Deposit Guarantee Scheme (DGS) – This scheme covers deposits up to a maximum of €100,000 per depositor per institution and does not have an expiry date.
• The Credit Institutions Eligible Liabilities Guarantee (ELG) Scheme 2009 came into effect on 9 December 2009 with an initial expiry date of 29 September 2010 subject to review.

Since this date, the scheme has had its extension approved by the EU Commission on several occasions and in accordance with their practice of approving member state guarantee schemes for six month periods at a time.

Currently the ELG scheme extends to 30th June 2012. This date can be extended further with EU state aid approval. The next review of the ELG Scheme will take place in advance of 30th June 2012.

 Does the ELG Scheme cover all deposits? – (Please see note below relating to Corporate Deposits)

 Most personal deposits will continue to be guaranteed under the existing statutory €100,000 Deposit Guarantee Scheme (DGS) which covers 100% of retail deposits with all credit institutions authorised in Ireland (including credit unions) up to a maximum of €100,000 per qualifying depositor per institution.

The ELG Scheme only guarantees the balance of personal deposits in the participating institutions over the €100,000 limit of the DGS. A private individual with a deposit of less than €100,000 is guaranteed solely under the DGS. If, however, the same individual has a deposit of over €100,000, the first €100,000 will be guaranteed under the DGS and the balance that exceeds €100,000, will be guaranteed under the ELG Scheme.

What guarantee applies for personal deposits in excess of €100,000?

As noted above, the ELG Scheme only guarantees the balance of retail deposits over the €100,000 limit of the DGS. The balance in on demand accounts or current accounts in an ELG Scheme participating institution in excess of €100,000 will be guaranteed until 30th June 2012 regardless of the date the account was opened.

The balance on fixed term deposits in excess of €100,000 opened with a participating institution during a period from the date the participating institution joined the ELG Scheme up to 30th June 2012 will be guaranteed for the full term of the deposit, up to a maximum deposit term of five years.

For example, a two year fixed term deposit of €150,000 opened with a participating institution on 1 October 2010 is guaranteed for the full two years of the term i.e. until 30 September 2012.

What guarantee applies for corporate deposits?

The ELG Scheme applies to all corporate deposits over €100,000 (for any duration up to five years) in the same way as for other deposits until 30th June 2012. The DGS guarantees the first €100,000.

• Irish Life and Permanent plc
• Irish Permanent (IOM) Limited
• Bank of Ireland
• Bank of Ireland Mortgage Bank
• Bank of Ireland (UK) plc
• The ICS Building Society
• Bank of Ireland (IOM) Limited
• Allied Irish Banks, p.l.c.
• AIB Group (UK) p.l.c.
• AIB Bank (CI) Limited
• Anglo Irish Bank Corporation Limited.
• Anglo Irish Bank Corporation (International)
• EBS Building Society
• Irish Nationwide Building Society
• Irish Nationwide (I.O.M.) Limited

* A list of all participating Group subsidiary companies is available at www.ntma.ie

Other Credit Institutions

 Some Banks operating in Ireland are regulated in their home country and operate here under EU rules. Such institutions are not covered by the ELG, and are instead guaranteed by their own, domestic compensation schemes and where relevant for Irish accounts, the Deposit Guarantee Scheme (DGS).

Foreign Compensation Schemes and Participating Institutions Include:

UK Scheme:UK FSA Financial Services Compensation Scheme- covers deposits up to an equivalent of £85,000.

Institutions covered include:Investec Bank plc, Nationwide UK Building Society, Leeds Building Society and Northern Rock.

Dutch Scheme:The Dutch Central Bank Deposit Guarantee Scheme- similarly to the Irish DGS, the Dutch scheme guarantees 100% of the first €100,000.

Institutions covered include: Rabodirect.

Danish Scheme:

Deposits covered through combined protection under the Danish Guarantee Fund for Depositors and Investors and theDGS up to a maximum of €100,000 per depositor.

Institutions covered include: Danske t/a National Irish Bank

 For further information please contact Helen Cahill or Aoibheann Daly on 01 6471200

Disclaimer

All opinions and estimates constitute best judgment at the time of publication and are subject to change without notice. This document is not to be relied upon in substitution for the exercise of independent judgment. Nothing in this publication constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.