Following due consideration and deliberation, the Board of Directors of Carrickmacross Credit Union Limited has decided to introduce a cap on savings of €40, 000 per adult member and €25,000 per minor member (a minor is classified aged up to 16 years of age) with effect from 1st January 2020.
It is important to note that this limit is based on the member, not the account. Therefore, each adult member is limited to a maximum of €40,000 combined savings, whether they are in a single or joint account.
Members who already have a balance in excess of €40,000, will be allowed to retain this balance but no more than that amount. However, any withdrawals reducing the balance, will limit the maximum the member will be allowed to retain to that sum following any withdrawals.
The rationale behind introducing the cap is as follows:
- Our total savings are growing by approximately 3.7% per annum and now stands at €1m as at 30/09/2019. In an environment of historically low interest rates, it has become incredibly challenging for Carrickmacross Credit Union Ltd. to find yielding products to invest the balance of these escalating savings that are not utilised in our credit book to our members.
- Under Central Bank of Ireland regulations, we are obliged to 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 must allocate €10,000 from our surplus/profits to our Capital Reserve.
- The approved share cap will affect circa 6% of our current membership. This may prove an inconvenience to these members with savings close to or above the relevant limits nonetheless, the Board of Directors of your credit union must act prudently in the best interest of our membership as an entirety.
Thank you for your understanding in this matter. Please be assured that we continue to innovate and work hard to protect the sustainability of Carrickmacross Credit Union Ltd.
The success that we have experienced over the years is because of members like you, who faithfully support our credit union. We appreciate your trust and loyalty and we will continue to offer quality products and services in line with your needs.