Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Protecting Savings

13»

Comments

  • #62
    royaler83
    Registered Users, Registered Users 2 Posts: 497 ✭✭royaler83


    Does the guarantee cover €100k per person or per account, for example if one had €300k and it was split 3 ways in 3 different accounts would it be covered?!

    Unfortunately I haven't €300k to split up :D


  • #63
    Scofflaw
    Registered Users, Registered Users 2 Posts: 23,283 ✭✭✭✭Scofflaw


    royaler83 wrote: »
    Does the guarantee cover €100k per person or per account, for example if one had €300k and it was split 3 ways in 3 different accounts would it be covered?!

    Unfortunately I haven't €300k to split up :D

    Nor do most people, which is why I would think it's pretty unlikely that small retail deposits will be a victim here. If you can put a billion into the banking system, and cover either 20 large corporate clients, or several tens of thousands of ordinary people, it's an easy political choice.

    cordially,
    Scofflaw


  • #64
    Sonny678
    Registered Users, Registered Users 2 Posts: 1,102 ✭✭✭Sonny678


    I have money in ulster bank. I am little worried. I would be so grateful for response.

    1 If the Irish banks go bust, ie. AIB will Ulster Bank go bust, If there run on Irish banks AIB will you able to get your money from Ulster bank.

    2 If the RBS/ Ulster Bank goes bust / run on the bank does this means that the Irish government cover the loses not the British government .

    3 Is your money safer in Ulster bank then the AIb etc. My sister has money in AIB and is thinking of tranfering money to Ulster bank

    Thanx


  • #65
    Scofflaw
    Registered Users, Registered Users 2 Posts: 23,283 ✭✭✭✭Scofflaw


    Sonny678 wrote: »
    I have money in ulster bank. I am little worried. I would be so grateful for response.

    1 If the Irish banks go bust, ie. AIB will Ulster Bank go bust, If there run on Irish banks AIB will you able to get your money from Ulster bank.

    2 If the RBS/ Ulster Bank goes bust / run on the bank does this means that the Irish government cover the loses not the British government .

    3 Is your money safer in Ulster bank then the AIb etc. My sister has money in AIB and is thinking of tranfering money to Ulster bank

    Thanx

    Again, the whole reason the ECB and the EU are throwing money at Ireland is to ensure that doesn't happen. If the banks went bust, your deposits would be covered by the Irish government, and if the Irish government can't afford it, the EU loans them the money to do so - in turn, the EU wouldn't have accepted the creation and extension of the Irish bank guarantee if neither Ireland nor the EU could back it up.

    As for moving money to Ulster - it's covered by the same guarantee. Details here: http://www.itsyourmoney.ie/index.jsp?1nID=100&nID=153&aID=620

    Moving your money to a foreign bank has the risk that if the foreign bank goes down - and other European banks have huge exposure to Irish debt, so if the Irish banks went, they'll domino a lot of other banks - then while you're covered by that country's bank guarantee (as long as it's an EU bank), foreign deposit-holders are likely to take longest to get paid, and any interim arrangements they may make are unlikely to cover you, because you don't have a vote there.

    At the moment, the safest thing is probably to hang on, I'm afraid.

    cordially,
    Scofflaw


  • #66
    pathway33
    Registered Users, Registered Users 2 Posts: 2,229 ✭✭✭pathway33


    The Irish banks are supposed to have some sort of €100,000 EU guarantee now. An Post is stuck with a mickey mouse state guarantee. So should all the people who moved their money from the bank to the post office move it back to the banks?


  • Advertisement
  • #67
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    they are not, it's a lie


    see here

    the EU wide deposit guarantee is only in proposal stage and wont be ready until 2012 at earliest

    I cant believe those ****ers are so blatantly lying to the people of this country


  • #68
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,517 CMod ✭✭✭✭Nody


    ei.sdraob wrote: »
    I cant believe those ****ers are so blatantly lying to the people of this country
    Why not? It is not like our politicans have been any more truthfull...


  • #69
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    Nody wrote: »
    Why not? It is not like our politicans have been any more truthfull...

    True our government are liars as seen today, yet again :(

    As for the central bank that stood over the destruction of the irish banking system (lets not forget that David Begg from a certain union sat on its board at same time), they are now using the media to spread misinformation.

    Whats next? a Ministry of Truth?? Nua Doublespeak Dictionary???

    grrr makes me ****ing mad these guys that were responsible for the country falling and now dragging it down more.


  • #70
    Scofflaw
    Registered Users, Registered Users 2 Posts: 23,283 ✭✭✭✭Scofflaw


    The situation with a European guarantee is that there's a Directive requiring banks to pay into such a scheme, which has been in force for some time, and which has been updated by Council decisions since the start of the crisis:
    1) What is a Deposit Guarantee Scheme?

    A Deposit Guarantee Scheme acts as a safety net for bank account holders in case of bank failure. If a bank is closed down, the scheme is to reimburse account holders of the bank up to a certain coverage level. A 1994 Directive ensures that all EU Member States have Deposit Guarantee Schemes in place.

    3) What is the current level of deposit protection in the EU? How is this going to change in the future?

    When the financial crisis hit in autumn 2008, Member States decided that the level of deposit protection should be gradually but quickly increased in the EU. A Directive adopted in March 2009 required coverage to be increased from a minimum of € 20 000 to at least € 50 000 by June 2010 and to a uniform level of € 100 000 by the end of 2010. Today's proposal – following an impact assessment on the move to € 100 000 – confirm the € 100 000 figure.

    So there should be, even at this stage, a fund that covers €20,000 per depositor per institution, and from which you should be able to get up to that much back pretty quickly:
    5) How quickly will bank account holders get their money back after a bank failure?

    Currently, account holders must be paid within three months after a bank failure. By the end of 2010, this delay has to be reduced to between four and six weeks. Today's proposal shortens the pay out delay to one week. This is important as account holders can face important financial difficulties within a few days – for example when they must pay bills.

    The banks have not ramped their schemes up to the €100k figure (it's not expected that they will have before 2020), which is why the government is covering that. However, given that the obligation is there, legally, the EU bank bailout we're apparently not discussing really will pretty much have to include that coverage, as far as I can see.

    cordially,
    Scofflaw


  • #71
    FoxT
    Closed Accounts Posts: 4,204 ✭✭✭FoxT


    I think it is highly unlikely that any bank will default on its depositors. However, if it was my nestegg I would

    1 - GET independent advice.

    I would be asking my independent advisor about the following:

    - spread it between 3-4 financial institutions. Some of the ones that I would consider ( But I'd be doing some homework first ) are
    Rabobank or ACCbank (owned by rabobank), nationwide UK, Banco Santander.
    - consider a sterling - denominated account for a portion of the savings ( but bear in mind that you then have a currency risk)

    Be aware that with many banks offering rates in the 2-3% range, the lump sum that you deposit WILL LOSE SOME VALUE (due to inflation) For this reason, it may be prudent to invest some of it (maybe 20%) in one or two conservative investment products from a reputable player.

    2 - GET independent advice.

    All of this stuff gets complicated, fast. I would urge you to

    3 - GET independent advice. ( I am repeating it, cos it is vitally important)

    It is difficult to find but will be better than most of what you read here ( including from me!)


  • Advertisement
Advertisement