Holding onto sterling deposit for 2/3 years - risky?

[marshmallow]

I have a large amount of sterling on deposit in an Irish based account, and rather than exchanging to euro am thinking of holding onto it for a couple of years in the hope that sterling might recover against the euro in the medium term as it seems it is set to slide even further with the BOE's new quantitive easing policy.

Can anyone else forsee a sterling fightback once all has 'calmed down'?

Am aware that this is a risky srategy but if anyone can suggest an alternative I'm all ears....

 

[elcato]

I look forward to hearing all the budding experts on this one. The simple answer is nobody knows as we cant really predict the future.

 

[Lightning]

The answer is nobody knows for certain.

One of the factors that impacts the GBP/EUR rate is the ECB and BOE base interest rates. It is my opinion/guess that the market is not fully factoring in a ECB cut to 0.75% which I think is likely to happen. Should this happen then GBP should increase in value.

What bank are you going with for your GBP deposit? What rate are they offering?

 

[marshmallow]

The answer is nobody knows for certain.

One of the factors that impacts the GBP/EUR rate is the ECB and BOE base interest rates. It is my opinion/guess that the market is not fully factoring in a ECB cut to 0.75% which I think is likely to happen. Should this happen then GBP should increase in value.

What bank are you going with for your GBP deposit? What rate are they offering?

Currently sitting in an NIB current account that offers no interest as far as I know. Know that Anglo offer deposit accounts but don't have a lot of faith in any Irish guaranteed banks at the mo...

Was also considered exchanging some to Aussie dollars as it's lost 40% or so over the last while so might be some gains to be had there when things pick up? Word is their economy is holding up better than the rest of us.

 

[Lightning]

Currently sitting in an NIB current account that offers no interest as far as I know. Know that Anglo offer deposit accounts but don't have a lot of faith in any Irish guaranteed banks at the mo..

0%? You should switch. If you are not happy to go with with Anglo you should consider Investec who offer GBP accounts.

 

[sunrock]

Are you saying that you would not be happy with your money in anglo ,despite the gov. guarantee?

 

[marshmallow]

Are you saying that you would not be happy with your money in anglo ,despite the gov. guarantee?

Pretty much. I dont like whats been going on there so far and nobody knows what else is to come. Would feel safer taking my chances with a non-Irish owned or guaranteed bank. However my biggest worry really is sterling depreciating further.