Deposit Guarantee Scheme (Ireland): What It Is, What It Covers, and How to Check Your Savings
- Kel Galavan
- May 12
- 5 min read
TL;DR
The Deposit Guarantee Scheme (DGS) protects eligible deposits if an Irish-authorised bank, building society, or credit union can’t repay depositors.
It can pay compensation for eligible deposits up to €100,000 per depositor, per institution.
In many cases, you don’t need to make a claim - payments can be sent automatically.
The scheme is administered by the Central Bank of Ireland and funded by the credit institutions covered by the scheme.
If you only read one line: DGS protection is about where your money is held and how much you have with that institution.
Should I be worried about my savings?
Have you ever had that little wobble when you see a headline about banks?
Not full panic. Just a quiet thought like:
“Is my money actually safe?”
“What would happen if my bank failed?”
“Do I need to be doing something here?”
You’re not alone.
And the good news is: Ireland has a protection scheme built for this exact scenario. It’s called the Deposit Guarantee Scheme (DGS).
What the DGS is (plain English)
The DGS exists to protect depositors if it has been determined that a credit institution is unable to repay its deposits.
In other words, if a covered bank, building society, or credit union can’t give customers their money back, the DGS steps in.
According to the DGS website, compensation payments for eligible deposits up to €100,000 are automatically sent to depositors, and depositors do not need to make a claim in order to receive compensation.
The Central Bank explains that the DGS is administered by the Central Bank and funded by the credit institutions covered by the scheme.
The big picture: why this matters (and why we often get confused)
Most people assume “my money is in a bank, so it must be protected.”
But protection depends on a few key details:
Is the institution covered by the Irish DGS?
Are your deposits eligible?
How much do you hold with that institution?
That’s why it’s worth understanding the basics - not because we’re expecting a bank failure tomorrow, but because peace of mind is a financial asset too.
What happens if there’s a bank failure?
Let’s walk through it like a real-life event.
Step 1: A bank/credit union is determined to be unable to repay deposits
The DGS is activated where it has been determined that a credit institution (aka a bank, building society, or credit union) is unable to repay its deposits.
This is not the same as:
The bank’s app being down
A technical issue
A temporary delay
It’s a formal situation where the institution can’t repay depositors.
Step 2: The DGS calculates what you’re owed (up to the limit)
The DGS covers eligible deposits up to €100,000 per depositor, per institution.
So if you have eligible savings with that institution, the DGS works out the amount you should receive — up to the maximum.
Step 3: Compensation is paid automatically (in many cases)
This is the part most people don’t realise.
The DGS website states:
Compensation payments for eligible deposits up to €100,000 are automatically sent to depositors.
Depositors do not need to make a claim to receive DGS compensation.
That’s designed to reduce stress and speed things up when people need access to their money.
A few real-life examples
Example 1: “I have €12,000 in a savings account”
If your savings are eligible and held with a covered institution, the DGS can compensate you (up to the limit). In this example, your balance is well under €100,000.
Example 2: “We have €60,000 in a joint account”
Joint accounts can confuse people.
The key idea: the DGS limit is €100,000, but the good news with a joint account is that it generally covers each person up to €100,000. This means that if you have a joint account, you are generally covered up to €200,000.
Example 3: “I have €140,000 sitting in one bank”
This is where planning matters.
The DGS covers eligible deposits up to €100,000. Amounts above that may not be covered under the standard limit.
So if you’re holding more than €100,000 with one institution, you may want to think about how your savings are spread. It may be worth spreading your money across 2 banks or institutions to ensure that all your funds fall within the DGS remit.
How do I check if my savings are covered?
This is the most practical part.
Here’s how to check.
1) Check the official DGS site
Start here:
Deposit Guarantee Scheme Ireland: https://www.depositguarantee.ie/
This is the official site that explains the scheme, what it covers, and how the compensation process works.
2) Cross-check with the Central Bank consumer page
The Central Bank’s consumer hub page is also a good reference point:
Central Bank of Ireland (Consumer Hub): https://www.centralbank.ie/consumer-hub/deposit-guarantee-scheme
It confirms the DGS is administered by the Central Bank and links you back to the DGS site.
3) Ask your bank/credit union directly (and look for the wording)
Most covered institutions provide a DGS disclosure or depositor information on their website.
If you’re unsure, ask:
“Are you authorised by the Central Bank of Ireland and covered by the Irish Deposit Guarantee Scheme?”
4) Do a quick “€100,000 check” on your own accounts
This takes 2 minutes:
List the institutions where you hold cash savings.
Write the approximate balance beside each.
Circle any institution where you’re over €100,000.
That’s not to scare you; it’s just good housekeeping.
Action Plan
Open your notes app and write:
“Where do I have savings?”
“Roughly how much in each place?”
“Any single institution over €100k?”
That’s it.
Clarity beats vague worry every time.
Most important takeaways
The DGS protects depositors if an Irish-authorised bank, building society, or credit union can’t repay deposits.
Compensation for eligible deposits up to €100,000 may be automatically sent, and you may not need to make a claim.
You can protect your peace of mind by checking:
Whether your institution is covered
Whether you’re under or over the €100,000 limit
The DGS is not only an Irish initiative; it can be found across the whole of the EU, with schemes being implemented in most EU countries. It is prudent to check with any foreign bank before opening an account.
Deposit Guarantee Scheme Ireland FAQs (quick answers)
What does “€100,000 per depositor, per institution” mean?
It means the DGS limit applies to the total of your eligible deposits within the same institution. If you have deposits with different institutions, the limit is applied separately to each one.
Do I need to make a claim to get my DGS compensation?
In many cases, no. The DGS website states that compensation payments for eligible deposits up to €100,000 are automatically sent to depositors, and depositors do not need to make a claim.
Does the DGS cover investments like shares, ETFs, or crypto?
No, the DGS is about eligible deposits (like money held in deposit accounts), not investment products.
Final Thoughts
Knowing how the DGS works isn’t about expecting the worst.
It’s about being the kind of person who can say:
“I know what protections exist. I know where my money is. And I’ve made choices on purpose.”
That’s a healthy money habit.
Kel Galavan is a leading Irish money expert, founder of Mrs Smart Money Ltd, Creator of the flagship course, Rise Money Become a Confident Investor, author of Mindful Money: More Money, More Freedom, More Happiness and a regular money expert in Irish media, with over 20 years of investing experience.
She focuses on helping people living in Ireland to manage their money and set a path to financial freedom. Having personally navigated her way from 6-figures of debt to a 7-figure net worth, she came to public attention after completing the No Spend Year™. Kel’s mission is to instil confidence and control around money. Kel is dedicated to empowering others to take control of their financial futures.
Disclaimer: The information on this blog is for general knowledge and discussion only, and does not constitute financial advice. You should seek independent professional advice before making any investment decisions. Investing carries risk. Links to third-party sites/products are not endorsements.
