From 1st January 2014 all credit union share dividend and deposit interest paid to members is subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The current DIRT rate is 33%.

The only members who are exempt are as follows:

• Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exception, you must sign a self declaration DE1 Declaration Form. This form is available in the credit union and is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.
• Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association and the Credit Union has no role in approving the exemption in these cases. If you do not complete the self-declaration form, Mallow Credit Union is obliged to deduct DIRT from your dividend. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible).

How to know if you are ordinarily resident for tax purposes

If you have been tax resident in Ireland for three consecutive tax years, you become ordinarily resident from the beginning of the fourth tax year.

If you leave Ireland after this time, you continue to be ordinarily resident for three consecutive tax years. For these three years you must pay Irish tax on your worldwide income except for:

• Income from a trade or profession, no part of which is performed in Ireland
• Income from an office or employment, where all the duties are performed outside Ireland
• Other foreign income, for example investment income, if it is €3,810 or less. If it is more than €3,810, the full amount is taxable

Revenue forms:

• DE1-Form
• DE2-Form

The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits.

The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme.

The DGS protects:

• Depositors (i.e. credit union members) if a bank, building society and or credit union authorised by the Central Bank of Ireland is unable to repay deposits
• Eligible deposits up to €100,000 per person per institution
• Current accounts, deposit accounts, share accounts in banks, building societies and credit unions

The Deposit Guarantee Scheme is obliged to issue compensation to depositors duly verified as eligible within 20 working days of a credit institution failing.

Each credit institution is required to maintain a Deposit Protection Account (DPA) equivalent to 0.2 percent of their total deposits, in order to fund the DGS. The Deposit Guarantee Scheme is part of the Central Bank of Ireland’s strategy to ensure that the best interests of consumers of financial services are protected.

The Irish DGS protects deposits held at EU branches of authorised Irish institutions. Deposits held with credit institutions that are authorised in another European Economic Area Member State are covered by that country’s deposit guarantee scheme.

Credit Unions covered by the DGS are listed in the Register of Credit Unions, available here.

A savings limit of €40,000 is now in place for all members. This will be the maximum amount of savings an individual can hold across all their accounts in total with Mallow Credit Union.

Under Central Bank regulations, we must maintain our statutory capital at a percentage of our total assets. In practical terms, this means that for every additional €100,000 of savings, we have to allocate €10,000 from our surplus/profits to our Capital Reserve.

New accounts opened after Wednesday 1st July 2020 are subject to a maximum balance of €10,000 in their first year of operation.

This decision was taken in the best interests of all our members and will be reviewed on an ongoing basis by the Board of Management and Directors.

How does the cap affect me?

If you have over €40,000 in savings across all your Mallow Credit Union accounts we are asking you to contact your local branch to make the necessary arrangements to reduce your savings in excess of that amount. If you are unsure as to your balance or how this will affect you please contact your local branch.

Are my savings safe here?

Please be assured your savings remain safe and secure at Mallow Credit Union Limited. We are a financially strong and stable credit union. In addition, your savings continue to be guaranteed by the Government Deposit Guarantee Scheme up to €100,000.

Does this mean the credit union is in difficulty?

No, this has absolutely no bearing on the day to day operations of the credit union.

How much can I borrow now?

Mallow Credit Union Limited is in a strong position to give out loans up to €100,000 net of savings, 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 by offering great value, flexible loans.