Best place large sums of money at the moment

fanny_mae

I have 300k euro and I want to know where the best place to put it? Obviously, keep 100k in 1 Irish bank as that is state guaranteed. What about the rest?

I read about bonds in postbank being state guaranteed - is that on top of the 100k mentioned above. Also, what the best way to transfer this money? I know if takes up to 3 days electronically - is there a better way? All this talk of banks going bust is making me VERY nervous

Ideally, I want to walk into my bank in the morning and get a briefcase containing 200k euro. Walk out of the bank and walk across the road to the post office and deposit all of it. I know it's like something from Oceans 11 but it's a real problem!

BendiBus

fanny_mae wrote: »

Ideally, I want to walk into my bank in the morning and get a briefcase containing 200k euro. Walk out of the bank and walk across the road to the post office and deposit all of it. I know it's like something from Oceans 11 but it's a real problem!

Bank Draft? Although if the bank collapses as you cross the road you might be in trouble

stepbar

fanny_mae wrote: »

I have 300k euro and I want to know where the best place to put it? Obviously, keep 100k in 1 Irish bank as that is state guaranteed. What about the rest?

I read about bonds in postbank being state guaranteed - is that on top of the 100k mentioned above. Also, what the best way to transfer this money? I know if takes up to 3 days electronically - is there a better way? All this talk of banks going bust is making me VERY nervous

Ideally, I want to walk into my bank in the morning and get a briefcase containing 200k euro. Walk out of the bank and walk across the road to the post office and deposit all of it. I know it's like something from Oceans 11 but it's a real problem!

As a sole account holder you could keep 200k in the one bank and still be protected for 200k. BOI and ICS Building Society (Owned by BOI Group) are both covered (100k each) in the Government Protection Scheme. In the case of joint a/c holders double the amount. So in effect you could have up to 400k (joint a/c) in the BOI Group (200k on the BOI deposit book and 200k on the ICS deposit book) and be fully protected.

LightningBolt

Is AIB covered in the 100k scheme?

BuffyBot

Yes, it's regulated in Ireland.

BTW Postbank does not equal Post Office, and therefore operates under the 100K limit.

Hanley

Could it not all be stuck in Northern Rock and be under British Central Bank guarantee?

OldRope

stepbar wrote: »

As a sole account holder you could keep 200k in the one bank and still be protected for 200k. BOI and ICS Building Society (Owned by BOI Group) are both covered (100k each) in the Government Protection Scheme. In the case of joint a/c holders double the amount. So in effect you could have up to 400k (joint a/c) in the BOI Group (200k on the BOI deposit book and 200k on the ICS deposit book) and be fully protected.

As ICS is owned by the Bank of Ireland does it not mean that they cannot covered more than £100k on deposit. In the UK if another banks owns a Building society then they both come under the same umbrella ie there is only one guarantee for both the bank and the building society.:mad:

Is it different in Ireland??

Madison26

Ok, First Active is owned by the RBS Group.
The RBS Group has 8 operational areas,
One of these areas is personal and business banking,
This area goes under the hat of Ulster Bank Group,
This provides services in Northern Ireland and the Republic under Ulster bank and First active.....

Is First Active it covered under the government deposit protection scheme?
Its regulated by the irish financial regulator and has a registered office in Dublin.

I'm just thinking that if crunch time came the Government might throw a curve ball and not pay out because its owned by a UK based company...

Toughts?

Hanley

Madison26 wrote: »

Ok, First Active is owned by the RBS Group.
The RBS Group has 8 operational areas,
One of these areas is personal and business banking,
This area goes under the hat of Ulster Bank Group,
This provides services in Northern Ireland and the Republic under Ulster bank and First active.....

Is First Active it covered under the government deposit protection scheme?
Its regulated by the irish financial regulator and has a registered office in Dublin.

I'm just thinking that if crunch time came the Government might throw a curve ball and not pay out because its owned by a UK based company...

Toughts?

From rte.ie;

The banks that are covered are: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and specific subsidiaries that may be approved by Government following consultation with the Central Bank and the Financial Regulator.......

......It does not apply to the liabilities of Ulster Bank, National Irish Bank, ACC or Rabobank who are all supported by large overseas parent banks

fanny_mae

Based on the Irish govt announcement this morning I'm not in such a rush to move my funds.

Thanks for all the advice though.

If the govt hadn't made that announcement, there would be a lot of people withdrawing money this morning! I wonder if they are just putting off the inevitable!

Madison26

This is the link from the Financial Regulator,

http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=96&pID=145&nID=385&aID=0#deposit

"In some circumstances a compensation scheme in another EU country applies. This would be the case with a bank or other financial institution authorised and regulated in another EU state but operating here on a branch basis under EU rules."

First Active IS regulated by the IRISH Financial Regulator.

Actually, the most sensible thing to do would be to ask First Active themselves really... I'll post the response..

OldRope

Madison26 wrote: »

Ok, First Active is owned by the RBS Group.
The RBS Group has 8 operational areas,
One of these areas is personal and business banking,
This area goes under the hat of Ulster Bank Group,
This provides services in Northern Ireland and the Republic under Ulster bank and First active.....

Is First Active it covered under the government deposit protection scheme?
Its regulated by the irish financial regulator and has a registered office in Dublin.

I'm just thinking that if crunch time came the Government might throw a curve ball and not pay out because its owned by a UK based company...

Toughts?

Therefore if the BoI owns ICS then you are covered by the BoI depost scheme not by ICS.

stepbar

OldRope wrote: »

As ICS is owned by the Bank of Ireland does it not mean that they cannot covered more than £100k on deposit. In the UK if another banks owns a Building society then they both come under the same umbrella ie there is only one guarantee for both the bank and the building society.:mad:

Is it different in Ireland??

Yes, because they contribute independently to the Government Guarentee Scheme. Actually it means diddly squat now that the Gov has guarenteed all savings now.

Madison26

FYI, to confirm...
Received this from First Active this morning..

'First Active, as part of the Royal Bank of Scotland Group, continues to be covered under the enhanced Irish Deposit Protection Scheme which is governed by the Central bank and the Financial Services Authority of Ireland. Every customer is guaranteed 100% of their deposits, including tracker bonds, subject to a maximum of 100,000 Euro in the event of a financial loss.'

judymoody

Would someone with money on deposit with Rabodirect be wise to move it to an Irish Bank? Is the AAA rating better than the government guarantee in terms of security for your money? I have spent hours trawling the net and have been unable to find an answer to this question.

gurramok

I have money in Rabo. I'm not going to move it as i see no reason yet.

Question is, do you trust the guarantee set by the govt on its ability to pay if doomsday happened and do you trust that Rabo will not go under in the same scenario?

As far as i can see, the govt guarantee has levelled the playing field of trust for both. Depositing money should now be based on best rate given rather than security as both the govt abililty under the 100% scheme and the Dutch scheme have AAA ratings..

Stealdo

People seem to be confusing the government's new undertaking with the savings guarantee scheme (where the announcement was made a week or two ago to increase the guarantee from 30k to 100k).

The Savings guarantee scheme covers deposits at any bank with an Irish banking license and aims to compensate people with deposits at that bank in the event of the bank disappearing. e.g. Bank A goes bust an no longer exists - gov will give you your money back. The question of being covered once or twice at two banks within the same corporate entity depends on the number of banking licenses held. e.g. you could have BOI trading as ICS or you could have ICS as an independant banking license holder that happens to be owned by another bank. In the latter case you could have 100k at each. The only way to know for sure is to ask the bank itself.

The new undertaking is that the government is effectively going guarantor, to put it in consumer terms, on the liabilities of the 6 biggest Irish banks as they were unable to get credit from other banks. This means that the government would have to re-pay the debts of these banks in the event of them going bust to other banks, not just consumers with savings accounts. (It probably also means that the 100k limit doesn't apply to these banks but again you would need to find out)

These are two seperate and distinct things.

judymoody

I think I understand the issues - I was just wondering if anyone had a view on which would be the best option? Does Rabo's AAA rating mean anything in real terms? Would it be better to spread the risk with a couple of Irish banks? I would willingly sacrifice the better interest rate knowing my capital was safe. Anyone??

ps - thanks gurramok

gurramok

Thats a judgement call.

Irish banks ain't out of the woods yet, they will still have bad debts coming due to domestic issues(property bubble) and one could possibly fail in the near future.

Rabo as far as i know never touched the mortgage market.

All we have is that security guarantee but question is, can the govt afford to pay out every depositor if an Irish bank fails?
I'd still spread the risk using bigger numbers in cash than before.