# Should I forget about the possibility of an Irish Nationwide "windfall"?



## Hippykitten (2 Jan 2009)

Hello everyone. Looking for your advice re the following situation: 

I have 20k in a flexisaver account with Irish Nationwide. I had set up this a/c in June 2007 hoping that I might benefit from any "windfall" that might occur from demutualisation. I do not have an immediate need for the money but as it is earning only 2.5% interest I was wondering whether I would be better off investing the money elsewhere. Advice would be greatly appreciated.


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## ClubMan (2 Jan 2009)

Are you sure that there are no other share/investment accounts with _INBS _that would grant membership *and *a higher rate of interest? If there are then you could open a new one and transfer in the €20K. Ideally get written confirmation that such a strategy would not cause any "break" in membership status.


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## megabyte (23 Feb 2009)

O.K. no cash payout but what if they do sell or are taken over what would  the possiblility be of getting shares in the company?
Surely now is a good time to get them.


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## Smi1er (27 Feb 2009)

Anyone with €20K earning not good interest in INBS should simply close the account. Look at the markets. There will be no windfall here for at least 5 years.

Several UK BS's have merged recently with no windfall.

Anyone in the fortunate position of having a minimum operating balance share account of €127 should keep it open, anyone else holding on for a windfall should move their money to where it earns most interest


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## PMI (29 Mar 2009)

I have a mortgage with INBS.  However, its almost fully paid up ie. down to c. €2500.  In order to remain qualified for any possible windfall I am paying "interest only" for the past 2 years. I now have to renew that arrangement for another year.  It's costing just approx. €7. per month.  Should I hold on or should I pay the dam thing off.


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## jim22 (3 Apr 2009)

*Windfall a non-runner?*

Similar position...was hoping for the windfall but am now wondering whether it will ever come good. Any advice on whether I'm better taking my 6K and putting it against my mortgage? Thanks.


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## Brendan Burgess (26 Oct 2009)

Oddly enough, a small windfall is becoming a possibility for EBS and Irish Nationwide members. According to this article by Simon Carswell in [broken link removed]

The government seems keen to have a third banking force of EBS,Irish Nationwide and permanent tsb. 

Apparently, Irish Life and permanent will spin off permanent tsb into the new entity. Irish Life plc will then be a life insurance company and it will own say 50% of the new entity. The government will probably own the balance. But they might give the members some form of shares in the new entity. 



> ILP is expected to take a stake of 40 to 45 per cent in the enlarged group, with the Government holding a similar-sized stake.
> 
> *The former members of EBS and Irish Nationwide would likely hold the remainder.* Bank of Scotland (Ireland) has also signalled an interest in participating. The Government may seek to reduce its stake over time, enabling ILP to grow its share in the new group.



So why would the government give the members of the Irish Nationwide and EBS shares in this? 

It is argued that their approval will be needed for the restructuring and also that this will encourage them to leave their deposits where they are.


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## Brendan Burgess (26 Oct 2009)

I would not be leaving €20,000 in the Irish Nationwide in the hope of this windfall. As I expect that if this windfall does come to pass, then it will be very small.

However, I have a €1,000 membership account, so I will probably leave it there. 

Likewise, if you have a residential mortgage with either the EBS or Irish Nationwide, you should ignore the windfall when making  a decision whether to pay it off or not.

Brendan


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## Raskolnikov (23 Nov 2009)

http://www.rte.ie/business/2009/1123/ebs.html

The government have come out and stated that Irish Nationwide will now be merged into EBS with the government holding a sizeable stake.

I imagine that's the final nail in any thought of a windfall for INBS members.


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