# financial advice for savings.



## bornagain (21 Nov 2011)

Hi all,

I have 420,000 in cash; 100,000 in Nationwide Uk earning 3%,
100,000 in Rabodirect earning 2.4% and the remainder in Ulsterbank
in various accounts.

I know I need to move money out of Ulsterbank as the amount I have there is over the bank guarantee level , I'm just mithered where to put it.

I would like to keep 20,000 fairly accessible for rainy day fund but I don't envisage needing any of the remainder until my oldest may go to college in about three years time.

I don't have mortgage and am debtfree.

I know you will probably advise me going to a Financial advisor but I never understand what they are talking about.

Any advise would be greatly appreciated.


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## Lightning (21 Nov 2011)

Questions ...

So you have 120,000 EUR that you want to move away from Ulster Bank? 
Are you happy to keep all your money in Euro?
Would you be okay to lock your money into a term deposit?
Have you read the best buy threads?
Do you only want to choose non Irish banks (as it appears from your list of banks) or are you happy with Irish banks?


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## bornagain (21 Nov 2011)

Ciaran,

Thanks for replying, I had felt all along the Euro would survive and the leaders were just letting things get bad so it would be easier to implement more economic integration but I now I'm getting really worried that the Euro will divide so to answer your questions;

1. Yes, I think it would be prudent to move 120,000 out of Ulsterbank as the max guarantee is 100,000.

2. I think it would also be prudent to have deposits in alternative currencies as at the moment all my deposits are Euro. I'm open to other currencies except the Us dollar .

3.As my main focus is safety and maintining the present value of my money, I would be prepared to lock away money if safety and value could be more or less guaranteed.

4. Yes, I have looked at the best buys and I am worried that the Government would be unable to honour the guarantee if the Euro becomes two speed.

I'm very worried and just want to spread my risk and not to have to worry as much.
If it was your money what would you do?.

Thanks a lot.


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## Lightning (22 Nov 2011)

Okay, if I am reading you right, you want: 
A) To spread risk.
B) To be prepared for possible EUR exit.
C) You don't want more deposits in Ulster Bank.
D) You don't want money in the 3 Irish banks. 
E) You don't want USD. 
F) You want to take 120,000 EUR out of Ulster Bank. 
G) You want to keep the remainder in the existing accounts listed above. 

Is that correct?

If so, your options include:
1) Go up north and open a GBP account. 
2) Going to Germany and opening a German EUR bank account. 
3) Consider a second/third currency such as AUD which can be opened with Investec and other banks.

Currency diversification is often considered a good option. Hence, splitting the 120,000 EUR over a few of the above options might be a good idea. 

*NB: You take on big FX risk with this strategy. FX swings can be significant.* The positive side is you help protect yourself against a possible EUR break up, if that does ever happen.


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## bornagain (23 Nov 2011)

Thanks for your help Ciaran, I plan to open an account with transfermate to-day to avail of the better currency exchange rate.

I thought of splitting the 120, between Stirling, Aud's and Cad's if the process isn't too difficult, if I could organise all with the one bank up the North it would be the handiest. I thought of avoiding Ulsterbank as I would alredy have the max guarantee down here and I believe Ulsterbank here and Uk come under the same umbrella group perhaps I'm wrong in this but thats what I understand from the Uk financial advise site.

Do you think the other monies are ok where they are or is there something I should be looking out for with regards them.

Sorry for picking your brains so much, I really appreciate your insight.

Thanks again.


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## kennyb3 (23 Nov 2011)

Why don't you educate yourself? I wouldnt rely on any one persons advice (no offence CiaranT). You have a worldwide library available on the internet. Read up on evrything you can, question everything and make your own decision at least that way you can live with yourself. Try not to have set views too.

Dont just read from Irish sites, read German, american, UK and others.


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## Lightning (24 Nov 2011)

bornagain said:


> Do you think the other monies are ok where they are or is there something I should be looking out for with regards them.



You need to weigh up the likelihood of a EUR exit versus the FX risk and cost attached to more non base deposits. 

If you think a EUR break up is very likely and if you don't want your money in An Punt Nua then you should convert more money into foreign currencies. 

If you think a EUR break up is unlikely then you should not incur the hassle, cost and risk of moving further deposits into other currencies.


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## gocall01 (24 Nov 2011)

Personally I believe there is still a case for putting a certain percentage in gold.
Gold is currently just short of $1700 and I believe there will be buying opportunities as it pulls back to somewhere between $1500 & $1600.

Currently the Australian Dollar is probably the best currency to transfer some of your cash to.


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## bornagain (29 Nov 2011)

Thanks everyone, i'm still deliberating about what to do and the more I read to 'educate' myself the worse I get, it's very hard to call.
Deusch bank dosen't inspire confidence with it's large 'leverage' levels, I'm afraid they would accept my money and be delighted to convert it to Punt nua should worse case scenario hit.
I'm also wary of currency outside the EU as I wouldn't have a clue about tax etc at least here the Dirt justs comes out automattically and you can forget about it.
HSBc in Belfast probably best bet, I took it as an omen to leave well enough alone to-day when I couldn't get through to the bank to see if I needed an appointment to open an account and I've tried three times to open an account with Transfermate without any luck.
Do any of you have opinions on the Danish Kroner accounts with Investec?.


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## Lightning (29 Nov 2011)

bornagain said:


> Do any of you have opinions on the Danish Kroner accounts with Investec?.



http://www.askaboutmoney.com/showthread.php?t=160621


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## bemmi (30 Nov 2011)

I've been fairly unimpressed with HSBC in Belfast - customer service is ropy, and EUR account is too much hassle (they won't sort out the tax for you - pay it to UK, you must reclaim it and pay DIRT here), you only get telephone not internet banking, and you get charged €5 pm.  

So saying, they have premier accounts you might be eligible for - only in Sterling though: for these, they will exempt you from the tax, give you a free account, give you better telephone banking, and also internet banking.  Problem is finding out all this - the account opening lines know nothing, and you can't call Belfast directly - so you must go up even to get the info.  You have to make the appointment through the phone line, but when you get there ask them about the Premier accounts if you're interested.

An alternative for you might be Barclays Wealth - you choose your account location: most are offshore, but if you choose Knightsbridge it's London.  You can open Euro account, or Sterling, or whatever.  Service is great in my experience, and you can open it without visiting them (though good bit of paperwork needed).  Internet banking of course, and they'll sort out the tax exemption.

HTH


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## bornagain (17 Jan 2012)

Would it be better to have dollars with maybe Ameritrade or in Uk with Barclays Wealth?.


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