One of the country’s largest credit unions, Life Credit Union, has put a limit on how much members can save.
It has nearly 40,000 members, and will impose a limit of €20,000 on savings from next month.
In a letter to members Life CU chairperson Marion Hanlon said: “The introduction of a savings cap is due to the very high level of savings inflow over the last few years, which has a negative impact on our reserves, and the lower return on our investment portfolio.”
Economist Eddie Hobbs is not surprised by this, and has a 25 point list (no less) on how negative rates could impact the future - and this type of move by credit unions is one of them.