Savings Limit Notice

Your savings in Ballinasloe Credit Union are very secure and are backed by strong assets and performing loans. In addition, your savings continue to be guaranteed by the Deposit Guarantee Scheme which guarantees all savings in financial institutions for amounts up to €100,000.

Total savings in Ballinasloe Credit Union are growing by around 6% per annum and now stand at €106 million. While the savings increase shows that members have great confidence the Credit Union, it also means we have a growing amount of surplus funds. Under Central Bank regulations, we must maintain our non-distributable statutory capital, at a minimum of 10% of total assets – so for every additional €100,000 of savings lodged, we must allocate €10,000 from our surplus to our capital reserves.
The negative interest rate climate also means that Ballinasloe Credit Union is effectively being charged by banks to hold the portion of our member funds necessary to meet our liquidity requirements.
The rising costs and low interest rate environment limits the Boards ability to propose dividends or invest in new products and services for members. By introducing a savings limit the Board are attempting to maximise the surplus available for distribution to members or to invest in new products /services and support the sustainable growth of the Credit Union for its members.

The limit applies to the total amount a member can have in savings in Ballinasloe Credit Union. The limit is based on the member, not the account. So, each member is limited to a maximum of €30,000 savings, whether they are in a single account, joint account or a combination of both Members with less than €30,000 can continue to save up to the new limit of €30,000. If a member currently has over €30,000 in savings, they will not be asked withdraw funds.

Members with savings above €30,000 will not be asked to withdraw their funds. Members in this category cannot make lodgements to their accounts and will be advised accordingly that we will not be accepting any further lodgements to their account(s) if their total savings remain above €30,000. There is no restriction on members withdrawing funds from their account.

If you have savings pledged against a loan, the savings limit will still apply. You will not be allowed to increase your savings balance above €30,000.

The savings limit will directly affect members with savings in excess of €30,000. Members in this category cannot make lodgements to their account(s) until such time as the balance in their savings is below €30,000. There is no restriction on members withdrawing funds from their account.

Given the current and projected future challenging climate of increased regulatory levies and historically low returns on investments the savings limit will be in place for the foreseeable future. The Board of Ballinasloe Credit Union will keep the savings limit under constant review, if a decision is taken to change the current arrangement you will be notified directly of this.

The dividend and interest rebate are decided upon on a year by year basis at the Annual General Meeting. The amount of surplus will determine what amount is available for dividend/rebate. By introducing a savings limit, we are attempting to maximise the surplus available.

Ballinasloe 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 limit. We continue to provide valuable loan services to the local community.

No, this has no bearing on the day to day operations of the credit union. Ballinasloe Credit Union is adequately capitalised with total reserves of €17 million and assets of just over €124 million.

Each time our savings increase, we must allocate more money from our surplus funds to our regulatory reserve, thereby reducing the funds we have available to pay out by way of 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 taken to limit savings for the long-term benefit of our members.

• If you intend to leave €30,000 in your account, please remember you will be unable to lodge any further funds into your savings account until your savings balance is less than €30,000.
• Please review your transactions especially if your Credit Union savings are approaching €30,000. You may need to cease these transactions or redirect them to another account.
• If you have any direct debits, credit transfers, standing orders set up to come into your Credit Union savings account, you are advised to review your account. You may need to reduce your current share balance so that these electronic lodgements will not result in your savings exceeding the €30,000 savings cap.
• If you are affected by the introduction of the Savings limit, please contact us by phone on 090-9643179 by email at info@ballinasloecreditunion.ie or talk to us in branch.