# How safe are deposits in AIB?



## tosullivan (15 Nov 2010)

I was talking to someone today and they said they knew a good few people who have pulled their money from AIB deposit accounts and moved it elsewhere.

I have about €35k spread out over a couple of 7 day notice accounts and was wondering should I transfer it back into the RABO accounts I opened up a few yrs back?  Is it safer there?


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## Marietta (15 Nov 2010)

You would want to start giving notice and maybe when the 7 days are up things might have improved a bit.


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## Lightning (15 Nov 2010)

tosullivan said:


> I have about €35k spread out over a couple of 7 day notice accounts and was wondering should I transfer it back into the RABO accounts I opened up a few yrs back? Is it safer there?


 
How do you have a few 7 day notice accounts? Is it not one per person? 

Why not move your money to Nationwide UK and get paid 3.15% and get greater safety? 

Otherwise, yes, your money is safer in Rabo.


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## scrooge1 (15 Nov 2010)

*AIB deposits*

Deposits up to 100k are guaranteed by the government so they should be ok.However a problem arose over the last week where irish banks went insolvent because the central bank ran out of funds.This occured because the ECB would not fund ireland due to the unknown losses in irish banks.This situation was compounded by the government giving a guarantee to banks whose losses are unknown and by the way still unknown.Take a look at the way bank shares dropped over the past couple of weeks.The only option open to the government was to try to access the EU bailout fund,set up after greece went under.The only problem once a bailout is agreed is that the government will as part of the agreement be forced to let one mabey two banks go to the wall.This like so many other things will be hotly denied but remember those speed camera vans are not there to generate revenue:quote minister Dempsey.    Mind how you go.


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## Marietta (15 Nov 2010)

scrooge1 said:


> However a problem arose over the last week where irish banks went insolvent because the central bank ran out of funds.This occured because the ECB would not fund ireland due to the unknown losses in irish banks.
> 
> The only problem once a bailout is agreed is that the government will as part of the agreement be forced to let one mabey two banks go to the wall.This like so many other things will be hotly denied but remember those speed camera vans are not there to generate revenue:quote minister Dempsey. Mind how you go.


 

  That's a very encouraging story and right before bedtime


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## Expat64 (16 Nov 2010)

It's wise to spread your money around to 'safer' banks, outside the country if you can. Why take the risk if you can avoid it?


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## Lightning (16 Nov 2010)

Expat64 said:


> Why take the risk if you can avoid it?


 
Exactly, when you weight up risk versus reward there is very little reason to keep deposits in AIB, when Nationwide UK offer a grester reward and greater security.


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## tosullivan (16 Nov 2010)

CiaranT said:


> How do you have a few 7 day notice accounts? Is it not one per person?
> 
> Why not move your money to Nationwide UK and get paid 3.15% and get greater safety?
> 
> Otherwise, yes, your money is safer in Rabo.


 
one account is mine and other is my wifes



CiaranT said:


> Exactly, when you weight up risk versus reward there is very little reason to keep deposits in AIB, when Nationwide UK offer a grester reward and greater security.


 NOt really up to speed on banking issues, but is Nationwide UK a UK based bank or are they operating in Ireland?

Is it a GBP account I would be opening with them?


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## Marietta (16 Nov 2010)

Hi TOSullivan,

Irish nationwide UK would operate under Irish regulations however, your money would be protected under the UK deposit scheme which is currently set at £50,000 per account. It is one of the top 50 safest bank in the world and never required any sort of government recapitalisation.  That is what makes them so attractive to Irish depositors. I have opened an account with them online at [broken link removed] and my application was dealt with in a swift and efficient manner and they also answer the phones without delay and will answer all questions put to them.

I don't know if they do sterling accounts, I didn't ask them but they probably do.


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## Lightning (16 Nov 2010)

Nationwide UK Ireland currently protect up to 50,000 GBP but will protect up to 100,000 EUR from Jan 1 2011. 

They don't do GBP accounts in Ireland. 

My not move your money to Rabo for now and then to Nationwide UK in a few weeks when/if you have the account set up ???


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## Marietta (16 Nov 2010)

CiaranT said:


> Nationwide UK Ireland currently protect up to 50,000 GBP but will protect up to 100,000 EUR from Jan 1 2011.
> 
> They don't do GBP accounts in Ireland.
> 
> My not move your money to Rabo for now and then to Nationwide UK in a few weeks when/if you have the account set up ???


 

Ciaran T, I applied online on a Monday and my account with nationwide uk ireland was all opened and ready to use by the following Friday. They really are on the ball in that bank, fair play to them.


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## tosullivan (16 Nov 2010)

Thanks CiaranT and Marietta.  The plan is to get the money out of my 7 day deposits with AIB asap.  I have to wait until next Monday for the 7 day notice period to elapse before I can retrieve it.  Once I have it in my current account I'll try to distribute it then, possibly some to RABO, some to GBP and maybe look at Nationwide UK aswell.


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## tosullivan (16 Nov 2010)

CiaranT said:


> How do you have a few 7 day notice accounts? Is it not one per person?
> 
> Why not move your money to Nationwide UK and get paid 3.15% and get greater safety?


 what account is this with Nationwide?


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## Marietta (16 Nov 2010)

Tosullivan, I know people are panicking a bit but I did hear a guy talking on the radio this morning telling people they deposits are safe and the ECB would never allow ordinary depositors lose their monies, I am sorry I didnt get his name but he sounded like he knew what he was talking about. 

I just wish our government would come out and reassure the people it is dreaadful state of affairs what's going on.  They might as well throw the towel in at this stage they have done dreadful damage to us these last few days.


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## Lightning (16 Nov 2010)

tosullivan said:


> what account is this with Nationwide?



Nationwide UK. 

See here: [broken link removed]


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## Westie123 (16 Nov 2010)

Marietta said:


> Tosullivan, I know people are panicking a bit but I did hear a guy talking on the radio this morning telling people they deposits are safe and the ECB would never allow ordinary depositors lose their monies, I am sorry I didnt get his name but he sounded like he knew what he was talking about.
> 
> I just wish our government would come out and reassure the people it is dreaadful state of affairs what's going on.  They might as well throw the towel in at this stage they have done dreadful damage to us these last few days.



That was David McWilliams on the Pat Kenny radio show. Baldrick from Blackadder would sound like he knew what he was talking about compared to those two cretins Cowen and Linehan.


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## Marietta (16 Nov 2010)

Westie123 said:


> That was David McWilliams on the Pat Kenny radio show. Baldrick from Blackadder would sound like he knew what he was talking about compared to those two cretins Cowen and Linehan.


 

You are correct Westie 123, it was Mcwilliams, apparently two years ago he more or less predicted exactly what is currently happening.


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## Lightning (16 Nov 2010)

Yeah, McWillams predicted the deposit outflows and the bailout of Ireland and Portugal. 



Marietta said:


> Tosullivan, I know people are panicking a bit but I did hear a guy talking on the radio this morning telling people they deposits are safe and the ECB would never allow ordinary depositors lose their monies, I am sorry I didnt get his name but he sounded like he knew what he was talking about.
> 
> I just wish our government would come out and reassure the people it is dreaadful state of affairs what's going on.  They might as well throw the towel in at this stage they have done dreadful damage to us these last few days.



The only solution is for the IMF/EC/UK to bailout the Irish government and then in turn for the Irish government to bailout AIB and the other Irish banks. If this does not happen, then outflows will continue.


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## tosullivan (17 Nov 2010)

Marietta said:


> Tosullivan, I know people are panicking a bit but I did hear a guy talking on the radio this morning telling people they deposits are safe and the ECB would never allow ordinary depositors lose their monies, I am sorry I didnt get his name but he sounded like he knew what he was talking about.
> 
> I just wish our government would come out and reassure the people it is dreaadful state of affairs what's going on. They might as well throw the towel in at this stage they have done dreadful damage to us these last few days.


 Marietta, I didn't hear McWilliams on the radio but saw him on TV a few yrs ago predicting all this so I'd say he knows his stuff alright.
He might be right about not losing your deposit, but I might aswell just spread the risk at least for a while.

What do people feel about the Post Office? Wife has told me that the Child Benefit goes into an account with them for the last few yrs so it has built up nicely.  Would there be a risk with them aswell?


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## Lightning (17 Nov 2010)

An Post deposits are done through State Savings which is used by the NTMA to fund the national debt. The market thinks there is a 60% chance that Ireland will default in the coming years.


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## demoivre (17 Nov 2010)

scrooge1 said:


> Deposits up to 100k are guaranteed by the government so they should be ok



*All* deposits are guaranteed in some institutions.


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## cremeegg (17 Nov 2010)

Marietta said:


> ...I did hear a guy talking on the radio this morning ...he sounded like he knew what he was talking about.
> 
> 
> Aaaah!!!! Isnt this what got the country into a mess in the first place, people trusting people that sound like they know what they are talking about.
> ...


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## callybags (17 Nov 2010)

Very sound advice. (In my opinion)


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## Lightning (19 Nov 2010)

*RTE: AIB have lost 13 billion in deposits thus far. *

http://www.rte.ie/news/2010/1119/aib.html



> AIB has said the amount of money on deposit at the bank has fallen by €13bn since the start of the year.
> The figure came in a trading update issued by the bank this afternoon.



The figure is several weeks old.


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## canicemcavoy (19 Nov 2010)

Think of the economic commentators who have been reassuring you.

And then remember what they said about property.


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## TrueBlue1150 (20 Nov 2010)

If you you have a mortgage with the AIB and various savings accounts also with them, surely the risk is not so bad? This may be a silly question, but if the bank do not have sufficient funding to honour savings accounts, could the amount of debt not be reduced by this amount should things turn very bad? If this were the case, what would be the reason for moving money from the AIB?


Trueblue


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## Lightning (20 Nov 2010)

TrueBlue1150 said:


> If you you have a mortgage with the AIB and various savings accounts also with them, surely the risk is not so bad? This may be a silly question, but if the bank do not have sufficient funding to honour savings accounts, could the amount of debt not be reduced by this amount should things turn very bad? If this were the case, what would be the reason for moving money from the AIB?
> 
> 
> Trueblue



In the Netherlands, when a bank failed about a year ago, debts were netted with savings under 100,000 EUR. This meant that your debt got reduced by up to 100,000 EUR.

"netting" is allowed when a bank fails. 

If you have a mortgage with a bank and deposits with a bank and you don't want your deposits "netted", however unlikely for it to occur, then you should have your deposits in a different banks


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## pAnTs (1 Dec 2010)

my friend is doing a masters in DIT and was told by one of his lecturers to get any money he had out of AIB, I am so worried as i have €11,500 in an arklife pip scheme, I think it's medium risk and it buys shares in the top 100 Irish companies. What could happen to my deposit if AIB goes to the wall?? The fund is down under what I have paid into it and a couple of months back I had decided to leave it to recover and continue paying into it for another 5 years of so. Now I just don't know what I should be doing  I had another 10,000 in a BOI account which I moved to Nationwide UK but I am hesitant to cash in my shares as some people are saying this is the time when you should be buying more!! anyone any thoughts on this???


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## elcato (1 Dec 2010)

> my friend is doing a masters in DIT and was told by one of his lecturers to get any money he had out of AIB


Great, another expert.....


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## pAnTs (1 Dec 2010)

you hear so many different things it's hard to know who to listen to!!


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