NIB Govt Guarantee - 2 official versions

P

pingpong

Registered User
Messages
67
Has anyone else solved the riddle regarding the 2 conflicting versions of the Danish state guarantee on the NIB website?

NIB page:
[broken link removed]

On the one hand it states that:

Customers can be reassured that their funds with National Irish Bank are 100% guaranteed under the Danish Government guarantee, regardless of amount.

Later, on the same page is stated:

Danish Guarantee Fund for Depositors and Investors

How much is covered by the Danish Guarantee Fund for Depositors and Investors?
i) Cash
The fund covers registered deposits with banks net of loan and other liabilities of the depositor vis-à-vis the bank for an amount up to DKK 300,000 (approx EUR 40,450) per depositor.
A copy of the English language brochure “How are you covered?” is available from The Danish Guarantee Fund for Depositors and Investors. Click [broken link removed] for a copy of the brochure.

This brochure states limit of 40k.

Can anyone clarify which version applies? Or is the former a top up scheme for the latter? NIB are not making this easy are they?
 
So does this mean that (a) NIB are the only 'Irish' institution where 100% of the funds are guaranteed ?

Obviously this is doomsday talk but ...
(b) Is the Danish governments guarantee a 'safer' bet than the Irish Governments one ?
Considering the state of Irish banking and the proportion of its exposure to property etc.
 
I think it means that the Danish Guarantee Fund is the underlying protection, and the Danish State Guarantee is the emergency guarantee that adds further proctection until it expires.
Mind you I wonder how volatile deposits will be as each county switches of the State Guarantees. I read recently that the German Government has upped theirs to 5 years which will leave the Irish Government with another big problem from 29th September 2010.
 
Tuttlinghorn said:
So does this mean that (a) NIB are the only 'Irish' institution where 100% of the funds are guaranteed ?

Obviously this is doomsday talk but ...
(b) Is the Danish governments guarantee a 'safer' bet than the Irish Governments one ?
Considering the state of Irish banking and the proportion of its exposure to property etc.
Click to expand...

Portugal also guarantees 100% cover for all savers.
 
Joody1 said:
Portugal also guarantees 100% cover for all savers.
Click to expand...

And so does Ireland (for the institutions covered and until Sept 2010). The OP's second question about how valuable this is considering the state of our economy is a different ballgame, but there seems to be an awful lot of confusion all over AAM about the "Irish Bank Guarantee"...

OP, NIB is not the only "Irish" institution where 100% of deposits is guaranteed.

The Irish Government Bank Guarantee Scheme covers 100% of deposits to Sept 2010.

The Irish Deposit Protection Scheme (for banks not covered under the Govnmt Scheme) covers 100% of up to €100k

See itsyourmoney for the full list.

I think a lot of the confusion arises because there are two schemes under which deposits are protected, with different levels of cover.
 
Thanks WaterSprite. So though its a No to (a) , maybe they are the only institution with the double indemnity of the Irish and Danish governments covering parts of the deposits.

Danish scheme covers up to Kr300,000 or approx. €40,000. Irish Deposit Protection Scheme covers the balance up to max. €100,000.
Full details here

In addition, National Irish Bank's parent, Danske, is now covered by a [broken link removed]. National Irish Bank deposit customers are 100% covered by the Danish Government Guarantee Scheme for the next two years.
Click to expand...

As you can gather I'm not entirely comfortable with the reality of the Irish Government actually having to bail out depositors .. I don't really want to be standing in that queue.
 
You must log in or register to reply here.
Back
Top