is rabbobank as safe as we are led to believe

irishh_bob

heard a guy ( the money doctor ) on newstalk today say that rabbobank was no more secure than anglo irish bank and that you would need to virtually head over to holland and deposit savings in a rabbo branch there in order to fully qualify for the guarentees rabbo provide , he claimed in the event of a complete meltdown of the irish economy , having savings in an online rabbo account would be no safer than with any other bank guarenteed institution , have to say i was quite taken aback by all this

hmmm

irishh_bob wrote: »

heard a guy ( the money doctor ) on newstalk today say that rabbobank was no more secure than anglo irish bank and that you would need to virtually head over to holland and deposit savings in a rabbo branch there in order to fully qualify for the guarentees rabbo provide , he claimed in the event of a complete meltdown of the irish economy , having savings in an online rabbo account would be no safer than with any other bank guarenteed institution , have to say i was quite taken aback by all this

I didn't hear the piece but that's not correct. Rabo is regulated by the Dutch & is a member of the Dutch guarantee scheme which guarantees 100k.

From Rabo's website

Rabobank is a member of (a) the Dutch Deposit Guarantee System and (b) the Dutch Investor Compensation Scheme, implemented by the Financial Supervision Act 2007 and related decrees. Broadly speaking, the Dutch Deposit Guarantee System deals with money - deposits in current and savings accounts - while the Dutch Investor Compensation Scheme is about securities held on your behalf by Rabobank. The Deposit Guarantee System and the Investor Protection Scheme will only become applicable if Rabobank enters into bankruptcy proceedings. However, Rabobank is a AAA-rated bank and consistently maintains these ratings. This is the highest level of creditworthiness that a bank can have. RaboDirect is the brand name of the internet bank that is part of Rabobank's Dublin branch. Accordingly RaboDirect has full AAA status.

fryup

they really suckered people in with their 5% savings rate a few years back, whats it now?

irishh_bob

fryup wrote: »

they really suckered people in with their 5% savings rate a few years back, whats it now?

2% , by far the lowest

hmmm

irishh_bob wrote: »

2% , by far the lowest

Wrong again.

Are you deliberately trying to run Rabo down?

RoadKillTs

2% , by far the lowest

It is 2% but its not the lowest. I really like Rabodirect. Think they have a great business model but their interest is crap like a lot of banks at the moment.

homer911

When 3 month EURIBOR is around 0.7%, 2% is extremely good for deposits

You can't complain about "low" rates on one side and then ask are they "safe" on the other side. Safe banks dont need to offer the best rates (a) because they already have a strong deposit base and (b) because they can still borrow money more cheaply on the interbank market. Would you consider a bank offering the highest deposit rates safe?

RaboDirect are clearly offering a middle-market rate to hang on to their existing customers, while refusing to pay through the nose for this money - and again, why should they when they dont need to - it would send out completely the wrong message

(Existing RaboDirect Customer, and very happy)

Dubh Geannain

homer911 wrote: »

Would you consider a bank offering the highest deposit rates safe?

I'd like to add, remember Icesave.

homer911 wrote: »

(Existing RaboDirect Customer, and very happy)

+1

RoadKillTs

Would you consider a bank offering the highest deposit rates safe?

I have a savings acc with Anglo Irish bank paying 4% interest. Are you saying that its not save there?

tunney

If Ireland exited the euro then all deposits in Rabo would be converted to the Punt Nua so from that respect its no better than AIB or BoI

Dubh Geannain

But if Ireland defaulted, that would be a different story.

dunkamania

True,but it would be difficult for ireland to default, and stay in the Euro

Chipboard

Do tell.

I have been meaning to sit down and think out what would happen if we exited the Euro (not for the fun of it but because I'm concerned about my deposits).

Say our debt burden became to0 great, talk is that the only way we could survive is by exiting the Euro, so we convert to (taking Tunney's term) the Punt Nua and I assume all our deposits convert to it but at what rate - lets say 0.78 ie you get 78p nua for your Euro. Then we devalue.....

What happens next and how does it affect the value of deposits in punt nua's?

WildBoots

Lots of chatter recently about Ireland exiting the euro. No smoke without fire?

enviro

WildBoots wrote: »

Lots of chatter recently about Ireland exiting the euro. No smoke without fire?

Can you post a link?, please...

catbear

It's more likely that serious debt countries like Ireland will be restructured. If it were just a matter of leaving the Euro then what conditions would allow Ireland to rejoin at a later time?

We have had a currency union for a decade and now the first major crisis means that a common solution has to be found. I don't know what that solution is but leaving the Euro I imagine would be the last thing to be done.