Savings Cap

2 March, 2021

Savings Limit

Saving with the Credit Union is a little different from saving with other financial institutions. You are not “just another customer” but an active member of a highly successful financial co-operative, which provides security and protection for your savings. Our focus is on serving the financial needs of our members and not on making a profit. Each €1 you save is equivalent to 1 Share in the Credit Union. By saving regularly you not only help yourself, you also help your community as your savings provide a loan fund for other credit union members.

What is the saving restriction?

For reasons set out below, the Board of Directors of New Ross Credit Union have reluctantly decided to limit the amount that an individual member can lodge into their account each month to an aggregate maximum amount of €2,000. New Ross Credit Union have a savings cap of €30,000 per member. If you had over €30,000 in savings before the limit was imposed, you can leave the funds in your account, but will not be permitted to make further lodgements unless you reduce the balance below €30,000 first. Members who have less than €30,000 can increase their Shares to €30,000 – but no more than that. Joint members can transfer funds to each other to bring their accounts under the €30,000 limit.

Why are the Credit Union limiting/imposing a savings cap?

The Board of New Ross Credit Union took the difficult decision to limit savings to €30,000 per member account and €2,000 per month after a significant increase in the amount of cash deposits made at the Credit Union and the implication this has had on the Credit Union’s ability to maintain the Regulatory Reserve set out by the Central Bank of Ireland, which is a minimum of 10% of our total assets.

This means that for every additional €100,000 of savings, we must allocate €10,000 from our surplus to our Capital Reserve, and this can have the effect of depleting the amount available to introduce new services.

We also face the challenge of a low interest rate environment which is greatly reducing the investment income that New Ross Credit Union earns on its investments. Due to the high level of on demand savings held by the Credit Union, excess funds must be placed in investments which we are receiving a very low or zero interest rates. There is also the possibility that the Credit Union will be charged by the banks for taking deposits in the near future. Therefore, the low interest rate environment is also impacting on our ability to generate a surplus.

How long will the cap last for?

The Board of Directors of New Ross Credit Union will keep the savings restrictions under constant review, if they make any decision to change the current cap, members will be informed.


Does this mean the Credit Union is in difficulty?

No, this has no bearing on the day-to-day operations of the Credit Union. Each time our savings increase, we must allocate more money from our surplus to meet this Regulatory Reserve, therefore reducing the amount we have available to pay out a potential dividend or loan interest rebate. It also reduces the amount we can afford to invest in new services and new technology options that can benefit all our members. To reduce the impact of this savings growth, the decision was reluctantly taken to limit savings to benefit the greater number of our members.

Are my savings safe here?

We can assure you that your savings remain safe and secure at New Ross Credit Union. We are a financially strong and stable credit union with €18m in capital reserves and €132m in assets.

In addition, your savings continue to be guaranteed by the Government Deposit Guarantee Scheme up to €100,000. Details of the deposit guarantee scheme are available from any of our offices or on our website through the following link:

The Credit Union has money to lend.

New Ross Credit Union is in a strong position to give out loans, subject to appropriate assessments being completed. Our ability to lend is in no way affected by the savings cap. We continue to provide valuable loan services to the local community.

I have received a letter advising me I am nearing the savings cap. How will this affect me?

Members who reach €30,000 in savings will be prevented from making further lodgements until the balance on their account falls below €30,000 (this will apply to all cash, cheque, and EFT transactions).

Please take note of your current balance and ensure that it does not exceed the €30,000 limit on savings. You may find out your current savings balance by contacting the credit union directly or by registering for online banking.

I am affected by the savings cap of €30,000 or the monthly limit of €2,000, what will I do now?
You will receive a phone call from a credit union representative who will advise you of your options. You will be required to make a withdrawal of funds to bring the balance below the €30,000 cap, this can be completed by cash, cheque, or EFT.