Deposits made with Bank of Ireland's UK businesses will not be protected under Ireland's expensive government guarantee scheme from the end of March, Ireland's finance minister said in a notice published on Friday.

Bank of Ireland, the country's largest lender, saw its deposits grow by 8 billion euros (6.8 billion pounds) in the second half of 2011, mostly thanks to its UK unit, but its fees paid for the state guarantee rose by 31 percent year-on-year to 449 million euros.

Ireland gave local lenders the green light to offer deposits to corporate and institutional investors without a state guarantee when it extended the scheme for another year in November.

(Reporting by Padraic Halpin; Editing by Greg Mahlich)