11 June 2026
Savings Cap Update
From 1st July 2026, the amount of savings a member can hold in their Arklow Credit Union account will increase from €15,000 to €50,000.
Why are we increasing the Savings Cap limit?
In January 2021, during the COVID pandemic, we introduced a savings cap, restricting savings to share accounts to €15,000. At the time, returns on savings and investments remained minimal due to persistently low interest rates, and for a period, negative interest rates. As members excess savings accumulated, member borrowings decreased, creating a mismatch for the credit union. With the introduction of negative rates by the banks, holding excess cash balances was costing the credit union.
By introducing a higher savings limit, the Board of Arklow Credit Union are attempting to maximise the surplus available for distribution to members and to invest in new products and services that will help support the sustainable growth of your Credit Union into the future.
Our guiding principle in making decisions is always to protect the long-term best interests of all members while ensuring we remain operationally sound.
What has changed?
Thanks to the savings caps and improved investment returns, we have successfully recovered our Capital position, which now stands at just under 17%.
The current interest rate environment is also more attractive now, with ECB rate increases anticipated in the short term. Additional funds from members will help augment your credit union’s surplus and further protect your credit union’s capital.
Considering current saving trends, we have conducted a recent exercise to forecast our Capital position. This includes a scenario where we increase the savings cap, confirming that we will remain sustainable even without the current limit.
Frequently asked questions:
Hereunder, are some questions you may have which we hope to have addressed in our responses, but if not please feel free to contact us with your query. Phone us on 040239972 or email info@arklowcu.ie
Yes, you can invest a lump sum into your account. We appreciate your support for the credit union savings cap and apologise for any inconvenience caused by it in the past.
The shares you hold with Arklow Credit Union are eligible for a dividend. The rate of return is agreed at the annual general meeting and is paid out of surplus income.
Yes. Arklow Credit Union is a financially strong and stable credit union and Member’s savings continue to be guaranteed by the Government Deposit Guarantee Scheme.
Under the Standard Rules for Credit Unions, we charge members an affiliation fee.
Yes. You can view balances, make lodgements, transfer between your accounts or to external bank accounts, view and download statements.
