Credit unions imposing saving limits

Credit unions imposing saving limits

Savings limits are being imposed at credit unions across the country.

Negative interest rates on deposits at two of Ireland's leading banks are being blamed.

At least 36 credit unions around the country have informed members that limits are to be imposed on their savings.

According to today's Irish Times, in some cases restrictions are being set on accounts containing as little as €15,000.

Credit unions said that both AIB and Bank of Ireland are charging them money to hold funds on deposit, but Central Bank rules are also being blamed.

Under these regulations, for every €100 saved by members, a credit union has to set aside €10 as part of the regulator's capital requirements.

The limits come as the value of accounts in the credit union sector continues to reach new highs. Savings hit €13.2bn in March of this year, a rise of 20% on 2008.

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