N Rock v Irish Govt G'tee

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Panacea

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Is it worth considering taking some of the money I have on deposit with BOI and AIB and placing it on deposit with NRock in a Euro denominated account? I originally split my small amount of resources between BOI and AIB to protect my family savings in the event of a failure of either bank before the govt g'tee was announced.

My primary concern over recent weeks is the potential length of the queue I will be in if the govt ever has to back up its g'tee or in the worst instance if the IMF end up having to come in.

I am not prepared to take an FX risk and place money on deposit in sterling in the UK or dollars in the USA (not sure if this is even possible) but it seems to me that having some of my deposit covered by UK govt and the rest covered by Irish govt may be a safer option than having all my eggs in one basket.

Would appreciate any advice in this regard and also if I am correct to assume that NRock Online Euro Deposit account is g'teed by UK govt.

Perhaps I am being overly cautious in which case I am equally happy for to have my mind put at rest if I am going mad in thinking that the Govt G'tee is not completely safe.

Would appreciate any comments/guidance.

Thanks
 
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In general it's a good idea to spread your deposits even if deposit guarantees exist as nothing is really 100% safe. The guarantee is only as good as the state's ability to make it.

If you're only a small depositor it's likely you'd be prioritised over larger despositors if the government ever had to back up its guarantee. You may well still be stuck in a queue.

NR online euro account is guaranteed up to the equivalent of £50k by the UK government. The Dutch scheme applying to RaboDirect is €100k. Rabo is probably the safest place you could put your money but their interest rates aren't great.
 
Do I understand correctly re Northern Rock guaranteed up to £50K by the UK government? I thought it was an unlimited guarantee.
 
Since 7th Oct 2008 the UK FSCS guarantee has been £50k per depositor per institution regulated by the UK FSA. This includes NR.

I can't find an official statement explicitly stating that state owned NR has an unlimited guarantee or for how long it would last if it exists.
 
Northern Rock deposits are 100% guaranteed by the UK government, regardless of amount.

See [broken link removed] (for example). It will only cease if the Govnt gives not less than 3 months' notice.
 
From that link that I posted:

[broken link removed]

Yes. The Bank of England and HM Treasury guarantee arrangements cover all deposits, regardless of the amount deposited, and apply to all existing and new accounts, as well as to further interest payments. The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the UK Government, such arrangements would not be withdrawn without at least three months notice in any event.

And the relevant blurb from itsyourmoney. And another [broken link removed] from that Q&A section in the Irish Times.
 
From the Northern Rock-Ireland website --
Is my money safe?
''Yes. The UK Government has put guarantee arrangements in place for all Northern Rock savers. These protect all savers in all accounts, regardless of the amount deposited and apply to all existing and new accounts. The guarantee arrangements will remain in place during the current instability in the financial markets and HM treasury will give reasonable notice (no less than three months) o any termination of these arrangements.''
 
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