# Online banking deposits safety - Rabodirect or Ulster Bank ?



## LucanMan (30 Sep 2008)

RABODIRECT

Rabodirect is safest (with AAA rating) and will give you 4.35% AER interest. ANother advantage is that you can keep money for a slightly higher interest of 4.85% for a 3 month period. 
They have investment accounts (with only .75% entry and .75%exit charge saving over 5% of other broker charges).
If you are interested you can make investments into FUNDS which they cover online directly tranferring money from your account.
Disadvantage -
in an unforseen situation if they go under you are covered for only €40,000 of your cash deposits !!!!!

ULSTER BANK

Ulster Bank is covered by Irish government for €100000 or for joint account €200,000 deposits !!!!! You can sleep in peace.
They give 4.4% AER interest for online account. 

I switched majority of my funds from Rabodirect to Ulster today to play safe in these uncertain times.

NOTE - BOTH BANKS use SPECIAL SECURITY digital codes. They send you these small encryption codes calculator which you need to use to transfer money out of your account to any other account.

SO ONLINE BANKING IS SAFE !!!!! RABODIRECT has 100% gaurantee against fraudulent loss online. 

Northern Rock-Ireland gives 5% interest AER but I dont have much experience and other can fill in.


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## RaboDirect (7 Oct 2008)

LucanMan said:


> RABODIRECT
> 
> Disadvantage -
> in an unforseen situation if they go under you are covered for only €40,000 of your cash deposits !!!!!


 
The Dutch government has agreed to increase its deposit protection guarantee to €100,000. This guarantee applies to RaboDirect which is regulated by the Dutch Central Bank.

For more information visit:

[broken link removed]


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## Betsy Og (8 Oct 2008)

on a worrying note RBS share price tanked yesterday, so that surely affects the overall security of Ulster and First Active - though €100k p.p. should be safe anyway.


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## pAnTs (1 Dec 2010)

Hi I just wondered was Ulster Bank in a better condition than AIB or BOI?? my parents have a large deposit with Ulster bank. I myself have a deposit with AIB and I had a deposit with BOI which I moved to Nationwide uk ireland. I'm in the process of possibly moving my AIB deposit and wondered should i be advising my parents to move theirs from Ulster Bank.


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## zen (1 Dec 2010)

Does anyone have the form that you fill in or the number you call when the banks go bust to claim your 100k?   I cant find it..... is it brian's direct number in Leinster House or do we wait outside and ask him.


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## pAnTs (1 Dec 2010)

wait outside and ask for him!!


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## Alan Robert (1 Dec 2010)

No banks are going to go bust. The EU and the ECB are not going to let it happen end of story. Depositors are not going to get burned. Move your money into a UK bank and if the Irish system goes down there's every chance the UK bank you picked will go down too. Moving money around is liking moving chairs on the titanic. I think it was Axel Weber the German EU guy who said the other day that 'if it means dropping €50 notes by helicopter to Spain then that's what we'll do'.


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## Alan Robert (1 Dec 2010)

Having said all that opening a sterling account might not be a bad idea as a currency hedge. Trichet is going to start printing money so the Euro might well devalue against sterling. So while no bank will be allowed default the effect of printing money might not do alot for the 'value' of the €. Buying some sterling now and then converting it back to € in 12 months say might be a good hedge. But this point might be better in a 'currency trader' thread. But banks going bust is not the issue. It's the €'s exchange rate that you want to be thinking about.


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## pAnTs (1 Dec 2010)

so I was saying in a different thread that a friend of mine is doing a masters in business and was told by one of his lecturers that he should move any money he has from AIB, crazy things being bantered around, one person is saying move it the next is saying it's safe as houses!! how is one to know


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## Alan Robert (1 Dec 2010)

AIB is broke, but the authorities are not going to let a bank go bust and close its doors. If AIB goes wallop and an unplanned way then I would suggest that all the banks are in trouble, certainly all the Irish banks, probably a mess in the UK and probably all over Europe such would be the fall out of an uncontrolled collapse


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## pAnTs (1 Dec 2010)

a sort of financial Armageddon_..._


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## Lightning (1 Dec 2010)

pAnTs said:


> Hi I just wondered was Ulster Bank in a better condition than AIB or BOI?? my parents have a large deposit with Ulster bank. I myself have a deposit with AIB and I had a deposit with BOI which I moved to Nationwide uk ireland. I'm in the process of possibly moving my AIB deposit and wondered should i be advising my parents to move theirs from Ulster Bank.



Ulster are general considered 'safer' than AIB or BOI. AIB and BOI are Irish state guaranteed. Ulster is largely UK state owned.



zen said:


> Does anyone have the form that you fill in or the number you call when the banks go bust to claim your 100k?



The Financial Regulator would issue the form.



Alan Robert said:


> No banks are going to go bust. The EU and the ECB are not going to let it happen end of story. Depositors are not going to get burned.



The risk is not zero. The ECB let a Dutch bank fail this year. Also, the ECB have stopped providing liquidity to AIB, the ICB have stepped in, as AIB have nothing left to repo out. Hence, ECB support is not unlimited.

Whether you think AIB is safe or not, it is hard to dismiss the fact that deposits are safer elsewhere.


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## Alan Robert (1 Dec 2010)

Disagree. ECB will not stop providing liquidity in the absence of the IMF etc moving in in tandem. Trichet buying debt of EU countries again. ECB/EU not leaving anyone behind!


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## Lightning (1 Dec 2010)

The ECB have already stopped providing liquidity. AIB have run out of things to repo with the ECB. AIB have had to turn to the ICB for support. The ICB have provided over 13 billion EUR in liquidity to the Irish banks.


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## Alan Robert (1 Dec 2010)

I disagree. Whatever the choreography of the situation ultimately the ECB is not going to let a bank collapse in an unplanned manner. It's just not happening. The ECB has stopped providing liquidity to Irish banks but not in the absence of other arrangements. If one thinks that, if some morning the AIB is closed unannounced and you could stroll down the street and casually withdraw cash from BoI or Ulster etc I don't share their optimism.


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## bogle (1 Dec 2010)

Alan Robert said:


> The ECB has stopped providing liquidity to Irish banks but not in the absence of other arrangements. If one thinks that, if some morning the AIB is closed unannounced and you could stroll down the street and casually withdraw cash from BoI or Ulster etc I don't share their optimism.



+1 Alan Robert.


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## Alan Robert (1 Dec 2010)

+1? not sure of the lingo! Does mean I can add your opinion to mine?


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## bogle (1 Dec 2010)

It means I more or less agree with what you're saying Dude.


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## Kev (2 Dec 2010)

Alan Robert said:


> Having said all that opening a sterling account might not be a bad idea as a currency hedge. Trichet is going to start printing money so the Euro might well devalue against sterling. So while no bank will be allowed default the effect of printing money might not do alot for the 'value' of the €. Buying some sterling now and then converting it back to € in 12 months say might be a good hedge. But this point might be better in a 'currency trader' thread. But banks going bust is not the issue. It's the €'s exchange rate that you want to be thinking about.



The UK is no better financially than the rest of the EU all that is different is they are not in the EU so they can buy bond much cheaper than countries that have been in the news recently.  

Also UK is will be printing money next year as their austerity   budget will begin in the new year.  Unhappy days ahead.


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## Alan Robert (2 Dec 2010)

Couldn't agree more Kev. The UK is in a dire situation also. I'm suggesting moving some money into Sterling as a hedge. I'm not suggesting it is a way make money, I'm not a currency expert. But if you have significant savings it might not be a bad idea as a hedging strategy.


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## farmerette (2 Dec 2010)

another option is to buy currency ETF,s via a stock broker , every currency ( or most of them ) has one


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