Worried about my AIB deposits

Monkey Beans · 27-12-2010 8:20pm #1

Hi there, can anybody advise me as to how safe my online deposit account is with AIB. I have over 30,000 euro's saved with AIB, but I've been advised by a number of people to get my money out of there or spread it around. I'm just wondering now that AIB has been nationalised by the government, does this mean that my money is more secure or less secure. If anybody is an expert in financial advise I could do with your help. Cheers.

chris85 · 27-12-2010 8:28pm

The goverment own the bank now for all intensive purposes. There may be problems had with the bank internally such as redundancies to come but your money is safe there as anywhere else.

You can spread it around if you wish. Until next summer all deposits below 100k are guaranteed anyways.

JTMan · 27-12-2010 8:29pm

What rate of return are you getting on your AIB deposits? Most likely, it is very low and you will be able to get a better return elsewhere. Nationwide UK will pay you 3% or Investec will pay you 3.6% for a 1 year term deposit.

With regard to safety, AIB are as safe as the other 6 Irish banks. They are as safe as the solvency of the Irish state.

mikemac · 27-12-2010 8:29pm

Rabo bank aren't a bad option. Well they used to have the top saving rates, now I think they are among the lowest!

Shop around for a good deal you can keep what you need with AIB for ready access

I wouldn't worry though

JTMan · 27-12-2010 8:32pm

chris85 wrote: »

The goverment own the bank now for all intensive purposes.

??? I don't understand your point.

chris85 wrote: »

your money is safe there as anywhere else.

AIB are rated BBB by the credit rating agencies. AIB have been given massive short term emergency liquidity from the ECB and the Central Bank of Ireland.

Rabo are AAA rated and have no emergency liquidity.

All banks are not the same.

Quandary · 27-12-2010 8:32pm

No harm opening a rabodirect account just to have another option available to yourself.

Thats what ive down anyway! Rabodireect have a money mover facility which allows you to transfer as much money as you like from your aib account or whatever account into you're rabo account in one go. Im not saying go and transfer all your savings into rabodirect but Its always safe to have a contingency plan in place in case things look like they're really going to go to ****e!

Best of luck

chris85 · 28-12-2010 1:15pm

Fungus wrote: »

??? I don't understand your point.

AIB are rated BBB by the credit rating agencies. AIB have been given massive short term emergency liquidity from the ECB and the Central Bank of Ireland.

Rabo are AAA rated and have no emergency liquidity.

All banks are not the same.

Its state owned now pretty much and thus is safe as houses for depositers. There are issues within the bank but with regard to its deposits there is no issues.

Its as safe there at the moment as any other bank due to the guarantee scheme. Yes rabobank are great but the OPs deposits is as safe in AIB until at least when the guarantee scheme ends.

Simple enought point really.

JTMan · 28-12-2010 4:23pm

chris85 wrote: »

Its state owned now pretty much and thus is safe as houses for depositers.

Disagree. AIB are in serious financial trouble right now. They have low credit ratings, huge emergency liquidity from the ECB, massive non repo'ed loans from the Central Bank of Ireland and growing mortgage arrears. They are in serious trouble.

The risk to depositor's is not zero.

SoCal90046 · 28-12-2010 5:02pm

Fungus wrote: »

Disagree. AIB are in serious financial trouble right now. They have low credit ratings, huge emergency liquidity from the ECB, massive non repo'ed loans from the Central Bank of Ireland and growing mortgage arrears. They are in serious trouble.

The risk to depositor's is not zero.

The risk is never zero at any bank, but the Irish government has guaranteed deposits; the banking system now has deep pockets behind it. The entire effort by the ECB/IMF is to prevent a collapse in the banking system, since it has unknown, though certainly frightening, systemic risk to the European banking system.

chris85 · 28-12-2010 5:15pm

Fungus wrote: »

Disagree. AIB are in serious financial trouble right now. They have low credit ratings, huge emergency liquidity from the ECB, massive non repo'ed loans from the Central Bank of Ireland and growing mortgage arrears. They are in serious trouble.

The risk to depositor's is not zero.

the guarantee makes the risk zero for the time being. I have mentioned its safe as houses but only while guarantee exists which is till middle next year, after that ends its a different story.

AIB are in trouble absolutely but until at guarantee scheme ends the deposits are 100% safe.

JTMan · 28-12-2010 5:30pm

chris85 wrote: »

the guarantee makes the risk zero for the time being. I have mentioned its safe as houses but only while guarantee exists which is till middle next year, after that ends its a different story.

AIB are in trouble absolutely but until at guarantee scheme ends the deposits are 100% safe.

Who runs the guarantee? The Irish government.

Hence, the guarantee is as good as the solvency of the Irish state.

The guarantee does not make the risk zero. The guarantee ties to banks to the state and makes the banks subject to the same risks as the state.

The CDS market implies a 30% chance of an Irish default. As the banks are tied to the state, if the state defaults, the banks will also default/collapse.

Hootanany · 28-12-2010 5:38pm

So if Ireland defaults on the IMF & ECB will are savings be gone :eek:

chris85 · 28-12-2010 5:54pm

Fungus wrote: »

Who runs the guarantee? The Irish government.

Hence, the guarantee is as good as the solvency of the Irish state.

The guarantee does not make the risk zero. The guarantee ties to banks to the state and makes the banks subject to the same risks as the state.

The CDS market implies a 30% chance of an Irish default. As the banks are tied to the state, if the state defaults, the banks will also default/collapse.

Following the intervention of the IMF/EU there will not be any default in the near future, even if there was it would not be in the next 12 months so the guarantee scheme stands. the country has enough liquidity to last a couple of years now. its what happens after that that is the issue.

If you think the country does not have the money to last till the end of the guarantee scheme then get your money out. The thing is we do now have the money thanks to the EU/IMF.

FloatingVoter · 28-12-2010 6:03pm

I'm in similar position as OP except with 6 figure sum. As it stands, I'm watching the bank guarantee which as an above poster implied is EU monitored. However, should a change of government be more radical than anticipated in the New Year, I would keep the money flexible enough to leave the country. Thats nightmare crap but in the short term - nothing hasty is my advice. And if you're really worried get some professional advice - this is the interweb after all.

JTMan · 28-12-2010 7:33pm

Hootanany wrote: »

So if Ireland defaults on the IMF & ECB will are savings be gone :eek:

Yes or certainly a large potion of it.

FloatingVoter wrote: »

I'm in similar position as OP except with 6 figure sum. As it stands, I'm watching the bank guarantee which as an above poster implied is EU monitored.

EU Monitored? Yes, but not EU guaranteed. There is a big difference.

Worried about my AIB deposits

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