Life Credit Union said it has recently communicated with their members regarding the introduction of a €20,000 savings cap, effective from October 1 this year.
The financial institution, which currently has four branches serving thousands of customers in Naas, Newbridge and Maynooth, said this move is necessary to maintain a strong financial position.
It said several factors have prompted the decision such as an increase in savings, a lower return from investments and the introduction of bank charges to hold its deposits.
Life Credit Union said it is continuing to expand its services including a new Current Account and Debit Card in coming months.
Marion Hanlon, Chair of the Board of Directors said: “The introduction of the savings cap is due to both high levels of savings inflow over the last few years, which has had a negative impact on reserves, coupled with a lower return on Life Credit Union’s investment portfolio.”
Members with more than €20,000 can maintain their current balance but will not be able to increase it. Members with less than €20,000 can continue to save up to the new limit of €20,000.
"All savings will continue to be fully guaranteed by the government Deposit Guarantee Scheme.
"In line with other Credit Unions in Ireland, Life Credit Union currently lend out 29% of all monies saved by members. The other 70% is invested in bonds and bank deposits and the return on these has fallen dramatically over the last years and continues to fall.
"In some instances, large investors, like Life Credit Union, are being asked by the banks which hold their deposits to pay them to hold these deposits.
"With €24m in capital reserves and €195m in assets, Life Credit Union is in a strong financial position."
"Life Credit Union is a community credit institution where personal interaction and communication is heart and centre. With a common bond including Naas, Newbridge and Maynooth, Life Credit Union has 4 branches servicing these areas."
Karen Mulligan, CEO said: “We are a strong credit union with a focus on our members’ needs. We continue to expand our products and services to best suit those needs, for example the introduction in the coming months of our Current Account and Debit Card.”
Any members affected by the savings cap can contact Life Credit Union directly on 045 879 622 or through any of their branches.