Deposit guarantee scheme is a financial stability mechanism
implemented in many countries to protect bank depositors against the loss of their deposits
in the case when a bank is unable to meet its obligations to depositors
by compensating certain deposits held by depositors of the bank.
This compensation is paid out from the contributions which banks have made
into a deposit guarantee fund.
Deposit Guarantee in EAA Covered Bond Bank plc
All credit institutions operating in Ireland are obliged to participate
in Irish deposit guarantee scheme.
EAA Covered Bond Bank plc is a member of Irish Deposit Protection Scheme and makes its contributions into it. In the case of EAA Covered Bond Bank plc failure, eligible depositors having covered accounts
in this bank will be paid out the following compensation:
Maximum Protected Amount
individuals sole traders small companies partnerships clubs associations schools
public authorities insurers pension funds collective investment schemes banks certain other financial institutions
any credit balance on an account with a bank, for example
demand deposit accounts
notice deposit accounts
certificates of deposit
fixed-term deposit accounts
share accounts in a building society or credit union
deposit element of structured deposits/tracker bonds may also be eligible
credit balances on credit cards issued by credit institutions may also be eligible