# Safest Option For 600,000 Deposit Savings?



## Gatekeeper (31 Aug 2010)

In view of all the uncertainty with the Irish Banks at the moment what would the safest option and best split be for 600,000e of savings?


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## UFOman (31 Aug 2010)

yes, i've the same question, at present we have 400k in rabo, and 350k in AIB, we wanted to move the AIB money today but were told tis 30day withdrawal....

ANY SAFE BETS on this?


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## george.shaw (31 Aug 2010)

If want to remain with the savings option which is quite risky given the likelihood of inflation taking off in the coming years than would put it into creditor nation currencies such as Singapore dollar, Hong Kong dollar, maybe Swiss franc and of course the debt free currency that is gold.

Given your bearish outlook would make even more sense to look at short dated government bonds - long dated are looking bubbly and could see sharp falls in value. 

A combination of the above would be sensible - diversification is key.

ps there are no safe bets anywhere in the world today


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## Lightning (31 Aug 2010)

AIB offer neither a good return nor are they the 'safest' bank. There is little reason to keep deposits with them. 



Gatekeeper said:


> In view of all the uncertainty with the Irish Banks at the moment what would the safest option and best split be for 600,000e of savings?



Safest? According to the rating agencies, Rabo & Northern Rock (AAA parent).

Highly rated: Nationwide UK. 

I suggest splitting your savings over NR and NUK to get a good return.



UFOman said:


> yes, i've the same question, at present we have 400k in rabo, and 350k in AIB, we wanted to move the AIB money today but were told tis 30day withdrawal....
> 
> ANY SAFE BETS on this?



Have you given your 30 days notice to AIB?

Yes, there are safe options as outlined above.


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## Gatekeeper (1 Sep 2010)

Are Northern Rock and Nationwide UK offering online accounts only to Irish Citizens?  Do you know what their gross annual interest rates are?  Would rather not use an online account as they change their terms and conditions frequently which can make it difficult to access you funds on deposit with them.


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## MugsGame (1 Sep 2010)

> I suggest splitting your savings over NR and NUK to get a good return.



Given government deposit guarantee limits, I wouldn't place more than €100k with any one Irish institution, or Stg£50k with any one UK bank covered by the UK guarantee (these limits may be doubled for joint accounts).


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## Lightning (1 Sep 2010)

Gatekeeper said:


> Are Northern Rock and Nationwide UK offering online accounts only to Irish Citizens? .


 
Essentially yes but you can drop into their offices. 



Gatekeeper said:


> Do you know what their gross annual interest rates are?


 
Please read the best buys threads. Anyway, it's 3.15% for NUK and 2.50% for NR. 



Gatekeeper said:


> Would rather not use an online account as they change their terms and conditions frequently which can make it difficult to access you funds on deposit with them.


 
Disagree/don't understand your point. You will be fine, from an access perspective if you go for an instant access account.


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## Lightning (1 Sep 2010)

MugsGame said:


> Given government deposit guarantee limits, I wouldn't place more than €100k with any one Irish institution, or Stg£50k with any one UK bank covered by the UK guarantee (these limits may be doubled for joint accounts).


 
Fair point Mugsgame. However, splitting 600K like this would require some work. 

Also, personally, given the high level of uncertainty over AIB/Anglo/INBS, I would not put any money in these banks.


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## Palerider (1 Sep 2010)

I'm curious, unless something has changed that I am unaware of IF you are on a fixed term account with Anglo or INBS or anywhere else and IF that fixed term goes beyond the year end proposed lapse of the Government guarantee than those funds regardless of amount are 100% guaranteed by the State, whilst I acknowledge the State may not be as solid as previously is anyone using this site seriously believing that we are a basket case with depositors monies at risk of write off if one of these banks of so called systemic importance fails ..?.

There appears to be a degree of doom and gloom about INBS / Anglo and others on the site but this point is factual is it not ..?


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## Lightning (1 Sep 2010)

Yes, It is correct, that any term deposit with INBS/AIB/Anglo etc. are Irish state guaranteed for the full term and the full amount if opened before December 31st 2010 by a personal customer and not a business. 

If you are asking, is anyone suggesting that the Irish state cannot meet all their liabilities? The answer is yes. Credit Default Swaps indicate a 30%+ chance of an Irish default inside 5 years.


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## bacchus (2 Sep 2010)

CiaranT said:


> Fair point Mugsgame. However, splitting 600K like this would require some work.


Agree with Musgame, diversification is key. Required "work" is well worth it for security and piece of mind.

IMO, there is not much work involved. Just few hours to fill up forms online & print, trip to garda station for stamping copies of id, few enveloppes and stamps...you are done. 
Money can then be pushed around online, though some banks applies max daily limits.


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