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IPSA statement on Ulster Bank exit

By February 19, 2021No Comments

IPSA is disappointed at the decision of Ulster Bank to withdraw from the Republic of Ireland.

Ulster Bank is the only Irish-licensed bank currently facilitating new savings accounts for the Save As You Earn (SAYE) scheme. SAYE allows employees at all levels of a company to share in the success of the business they work for.

IPSA understands that Ulster Bank currently has around 6,000 SAYE account holders with savings valued at approximately €20m. It is not yet clear how Ulster Bank intends to deal with its obligations to these savers, and whether or not the bank will continue to accept new SAYE account holders.

What is clear is that unless another Irish lender commits to facilitating SAYE savers, then this important, Revenue-backed share scheme scheme will no longer be viable. Companies who wish to reward their employees for the financial success they have helped to create, will have one less tax-efficient option available to them.

IPSA intends to seek clarification from Ulster Bank around the issue of SAYE, and will continue to communicate to the Government the urgent need to secure the future of the scheme.