# Deposit Savings in National Irish Bank?



## andycole (16 Feb 2011)

Nib


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## Gervan (16 Feb 2011)

I think the reason people are trying to place money offshore is they worry about the security of the currency, as well as the bank.
If Ireland remains in the euro your funds are safe in NIB. However, if there is any kind of devaluation, your €120,000 could turn into €40,000 worth overnight. We're all gamblers now, so we put our money on the table where we think it will be safest. There are no real guarantees.


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## DMcL1971 (16 Feb 2011)

andycole, I believe you are correct. Personally my money is in NIB, I consider it to be a safe bank, it has the advantage of the security of being part of a larger foreign owned bank just like Rabo is, but still has a physical presence in the country which is comforting.
The way I see it there are two seperate threats to Irish deposits. First, that your bank might get into trouble and second, that Ireland may leave the Euro.

1. Your bank getting into trouble.
The 100K deposit guarantee covers deposits in Irish banks and therefore covers deposits in not only the Irish owned banks but also the foreign owned banks operating in Ireland. If one Irish bank were to go bust the government would have to pay out on the deposit guarantee for depositors in that bank. If multiple Irish banks were to go bust the government may not have the money to cover all the depositors. So to hedge against this eventuality it would be a good idea to move your deposits from a troubled Irish bank, such as Anglo, to a more secure Irish bank such as PTSB. If you were still concerned then move your money to a secure foreign owned Irish bank, such as NIB. There should be no need to move your money abroad in order to protect it from Irish banks going bust.
Also it seems to me that it would be in no ones best interest for the government to ever have to cover anyones deposits. So they would instead encourage us to move our deposits elsewhere. So if any bank gets into real trouble we will all know about it and move our deposits to somewhere else. This can be seen in the Anglo situation, we all saw that there was a problem, many of us moved our deposits, those that didn't are now going to be sold off to another bank. If this wasn't done the government might have had to pay out. Also, any bank that is not in trouble would be delighted to buy a customer base of depositors from a troubled bank, it's a hell of a lot easier than trying to persuade people to switch their deposits to your bank.

2. Ireland leaving the Euro.
Some people are concerned that the situation will get even worse and Ireland will leave the Euro and revert to a seperate currency (PuntNua). In that case then any deposits held within Irish banks, whether local or foreign owned, would be changed into the new currency. Which presumably would be devalued, therefore your deposit would be worth a lot less. To hedge against this you might move your money to an account outside of Ireland such as Keytrade or a German bank. However at some point, unless you emigrate, you would have to change the money back. Though hopefully by then Ireland would have recovered.


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## andycole (16 Feb 2011)

Link  - [broken link removed]


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## Lightning (17 Feb 2011)

More from RTE:

http://www.rte.ie/news/2011/0216/danske-business.html



> Moody's today downgraded the long-term rating of five Danish banks, including the country's largest, Danske Bank, after the bankruptcy last week of the Amagerbanken regional bank. Danske Bank owns National Irish Bank here.
> The ratings agency downgraded Danske Bank, Spar Nord Bank, FIF Erhversbank, Ringjoebing Landbobank et BankNordik, it said in a statement. It also said it may further bring down the ratings Danske Bank, FIF Erhversbankn et BankNordik.
> 'These actions follow the bankruptcy and transfer of Amagerbanken to a government-backed entity,' the ratings agency said.
> It pointed out that the Danish government's decision to allow the country's eighth largest bank to fail on February 6 before taking it over demonstrated Copenhagen's 'willingness and ability to impose losses on depositors and senior creditors in a bankruptcy.'
> On October 1, 2010, an unlimited state-backed bank guarantee put in place at the height of the global financial crisis in 2008 came to an end, and bank accounts are currently only guaranteed up to 750,000 kroner (around €100,000), with that entire amount covered by the banking sector.


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## andycole (17 Feb 2011)

Nib


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## horusd (17 Feb 2011)

> What does this mean "with that entire amount covered by the banking sector "


 
This suggests some kind of banking  insurance/fund. 

And I would assume that if it is a type of insurance/fund, and it's stated in DK then it would be subject to FX rates, unless there is some other stipulation regarding non-DK deposits.

If you need this kind of detail, I suggest you ask the specific bank you are thinking of using.


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## monica2 (22 Feb 2011)

*national irish bank*

should i be worried about the recent ratings downgrading of danske bank in denmark as i was considering opening a national irish bank account for my savings about 20k. i would really appreciate any advice!


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## Westie123 (25 Mar 2011)

In the event of a financial meltdown, for want of a better term, and the Irish Government curtailed access to or froze Irish bank accounts, would banks like Rabo or NIB be as affected as Irish banks like AIB, BOI etc?


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## SemperFi (25 Mar 2011)

Previous threads here on subject seem to conclude that it doesn't matter which bank it is so long as its in the country.


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## Godfather (25 Mar 2011)

I love the fact that NIB allows you to set up international payees with IBAN, etc. by yourself so that you can move money around very quickly... And I love their clear esaver account.


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