One of the country’s largest credit unions has put a limit on how much members can save.
Life Credit Union, with nearly 40,000 members, will impose a limit of €20,000 on savings from next month.
The move will impact on young savers trying to get on the housing ladder.
First time buyers need a 10% deposit to get a mortgage - €30,000 on a €300k home.
They will have to find another financial institution if they want to continue to save for the down payment required under stringent Central Bank rules.
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.”
The credit union is one of the largest to impose limits on savings and also blames the new rules on the big banks who are now charging credit unions to hold their cash reserves.
Credit Unions can expect to pay the banks up to €6,500 for every €1m of deposits they put in the banks.
Life Credit Union has two branches in Naas and offices in Maynooth and Newbridge.
Savers who currently have more than €20,000 on deposit will be able to maintain that balance.
But they won’t be able to increase their savings with the credit union.
Those with less than €20,000 can continue to lodge money - but only until they reach the new limit.
Some credits unions are imposing savings limits as low as €15,000.
A spokeswoman for the Irish League of Credit Unions told the Irish Mirror said there has been a steady growth in savings at credit unions in recent years.
“It is a positive for credit unions that balance sheets are growing steadily. However, the priority is loan growth,” she said.
“Our credit unions are earning low levels of returns on their investments so in some cases credit unions are managing their balance sheets by restricting savings,” she added.
