Jacinta invested €80,000 in a deposit tracker bond in July 2016. What amount, if any, of Jacinta's investment is covered by the Deposit Guarantee Scheme?

• A. Nil.
• B. €20,000
• C. €76,000
• D. €80,000

Answer: (D)

The key idea is what the Deposit Guarantee Scheme covers and up to what limit. In Ireland, the scheme protects deposits up to €100,000 for each depositor per credit institution. A deposit tracker bond is treated as a deposit with the bank rather than a general investment, so it falls under the scheme’s protection. Since €80,000 is within the €100,000 limit, the entire amount is covered. If the amount had exceeded €100,000, only up to the limit would be protected, and any portion above that would not be guaranteed. So, the full €80,000 is covered by the Deposit Guarantee Scheme.