Term Accounts
Special Term Accounts - 3 or 5 Years
- A Declaration must be signed by a member wishing to open a Special Share Account
- The first €480 of dividend is tax free on a 3 year account and €635 on a 5 year account. The excess earned in dividend is subject to DIRT tax presently 25% but is subject to change by the Minister for Finance from time to time.
- The credit union provides the Revenue Commissioner with the names and addresses of account holders.
- A 3 year account can be extended to a 5 year account, but a 5 year account cannot be reverted to a 3 year account.
Withdrawals on Special Term Accounts
There are penalties for early withdrawal. Once a withdrawal is made the account reverts to a Special Share Account, and all future dividend is taxed at the DIRT rate, currently 25% and previous dividend where DIRT exemptions were made are taxed at the DIRT rate, currently 25%.
Should a member reach their 60th birthday during the term of the account, that member can make a once off withdrawal. There is no limit on this amount. The account must have been opened before the members 60th birthday.