In February 2020, the Board of Directors took the difficult decision to introduce a savings limit of €30,000. At that time, if you held more than €30,000 in savings with Ballinasloe Credit Union, you could maintain your current balance but would not be able to increase it.
From the 1st February 2021 this policy will now be applied to existing funds a member holds with Ballinasloe credit Union. In advance of this date, we are asking members to withdraw any funds held with Ballinasloe credit union that exceed the €30,000 limit.
The business model of the Credit Union is built upon providing secure savings accounts and competitive loan products to our members. At present, circa 38% of member savings are used to fund loans.
The remaining funds are placed in secure investments to generate a return and also in short term deposits to meet the regulatory requirements of the Central Bank.
For some time now, short term deposits have attracted a negative rate of interest and it is now a cost to the Credit Union and its members to hold these funds. While Ballinasloe Credit Union is in a very strong financial position, the holding of large amounts of member funds on short term deposits at a negative rate is not in the best interests of the membership.
It limits the ability of the credit union to invest in additional products and services for our members and stifles our ability to pay dividends.
From the 1st of February the Credit Union will begin the process of issuing cheques to members for the amount your funds exceed the €30,000 share limit.
If you have monies coming into your account electronically through payroll or from another financial institution, we will need to make plans to ensure that the €30,000 limit is not breached on your account. The most convenient way for you to do this is to ensure there is sufficient capacity remaining in your account. For example, you may decide to reduce your balance to €25,000 and as it approaches €30,000 again, withdraw further funds.
In order to make this process as smooth as possible for you, we have a dedicated team ready to answer queries on how the savings limit might affect you. Please call us on 090 9643179 to discuss your options or email us at firstname.lastname@example.org.
Our team will be able to answer any questions you may have and assist you with making alternative arrangements for your excess funds
For more information, please refer to the frequently asked questions segment below.