The changes allow members to save up to 200,000 in a credit union spread between traditional share accounts, which pay a dividend at the end of the year, and deposit accounts, which accrue interest month-by month in the same way as bank deposits.

Credit unions lobbied for the higher limits, claiming that they risked losing business to the banks as SSIAs matured. But banking sources have questioned why they want to take in more savings at a time when they are sitting on significant surplus liquidity.

Bankers also claim it could facilitate tax evasion by allowing more money to be held in share accounts. It is up to credit union members to decide whether or not to have Dirt tax deducted at source from the dividends.

The Irish League of Credit Unions have welcomed the changes.