# Moving 6 Figure Sum from AIB to Rabo - Notice Period Issues



## RuthNaz (2 Jan 2011)

I am looking to move my savings from AIB to Rabo for obvious reasons. 

The problem is I have my savings in a 90 day notice account in AIB. Is there anyway around the 90 day notice?    I gave my notice to AIB just before Christmas, but I really do not want to wait out the remainder of my notice period.  Any advise? Thanks.


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## Lightning (2 Jan 2011)

I assume you have this account: [broken link removed]. The interest rate is very low on this AIB account. 

The T&C's say:



> One instant, notice-free withdrawal of up to EUR2,500 is allowed within a 90-day period and no early withdrawal charge applies.



Hence, you can move 2,500 EUR straight away. If you want to move your money faster, I suggest you ask AIB if they will allow a withdrawal of the remainder subject to a penalty. 

I also suggest you use the remainder of your notice period to start the account opening process at Rabo. Rabo account opening can sometimes take a while.


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## Sue Ellen (2 Jan 2011)

CiaranT said:


> I also suggest you use the remainder of your notice period to start the account opening process at Rabo. Rabo account opening can sometimes take a while.



I also think it is a good idea especially as you will have time to wait out to do a test move i.e. do a transfer of a small amount to ensure that you have the correct procedures (account details etc.) in place.

AFAIK the daily inter-bank transfer max with AIB is €5,000 on working days only.


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## CashMoney (3 Jan 2011)

RuthNaz said:


> I am looking to move my savings from AIB to Rabo for obvious reasons.


 
Can I ask what the obvious reasons are?


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## UFC (3 Jan 2011)

CashMoney said:


> Can I ask what the obvious reasons are?



AIB is insolvent...?


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## Lightning (3 Jan 2011)

Sue Ellen said:


> AFAIK the daily inter-bank transfer max with AIB is €5,000 on working days only.



Yeah, online banking at AIB has a 5,000 EUR limit. Branches can do larger wires. 

If you do it online it might take another 90 days to get your money out of AIB. Best to do in the branch to your Rabo account once your 90 day notice period is up.


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## CashMoney (4 Jan 2011)

UFC said:


> AIB is insolvent...?


 
Eh....it's not? The state/EU/IMF has seen to that.


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## Lightning (4 Jan 2011)

CashMoney said:


> Eh....it's not? The state/EU/IMF has seen to that.


 
UFC is correct. AIB are almost certainly very close to being insolvent. Here is some wonderfully detailed analysis by Nama Wine Lake blog on the solvency issue at AIB:

http://namawinelake.wordpress.com/2010/12/20/is-aib-insolvent/

When new funds when transferred to AIB, this will temporarily help this situation at AIB.



> Since 30th June, 2010 Tranche 2 and Mini-tranche 1 and 2 have been transferred and the haircut on these has been €8.724bn. That means that today AIB is left with a balance from June 30th, 2010 NAMA-bound loans at par value (less the transfers to date) of €5.175bn with a remaining provision of minus €4.224bn. If the remaining balance of €5.175bn of €5m+ exposures is to have a discount of 60% that means that AIB needs book a loss and provision for future losses of €7.329bn today. Ouch!
> 
> However since June 2010 it has been decided that AIB must also transfer land and development exposures of €0-5m. Along with BoI the total €0-5m exposures is estimated to be €10bn. The split between AIB and BoI has not been revealed but it was previously reported that the €5-20m exposures totaling €6.5bn were split €4.4bn to AIB and €2.1bn for BoI. So on that basis you might expect AIB’s €0-5m exposures to total well over €5bn.
> 
> ...


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## CashMoney (4 Jan 2011)

CiaranT said:


> UFC is correct. AIB are almost certainly very close to being insolvent.


 
OK, so they are not insolvent then? There is quite a difference between being insolvent and "almost certainly very close to being insolvent".

I was questioning the OP on the urgency to move funds from AIB into Rabo. It's obvious that the AIB is in difficulty, but it is also obvious that the state/EU/IMF are not going to allow any irish banks to fail at this stage.


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## Lightning (4 Jan 2011)

AIB are not illiquid. That is for certain. They would not be trading if they were illiquid. 

As Nama Wine Lake said, there is very good reason to question their solvency. As I said, when the new funds are transferred to AIB it will help their solvency situation and yes the IMF and others are obviously trying to address this issue at AIB


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## UFC (4 Jan 2011)

CashMoney said:


> it is also obvious that the state/EU/IMF are not going to allow any irish banks to fail at this stage.


 
I don't know if it is obvious. I would say it is likely, but who knows? Maybe 2011 will be the year the banking mess is sorted out once and for all. (Pumping billions into the banks doesn't seem to be sorting out the problem, so maybe a more drastic - kill the zombie banks - solution will be used...)

Certainly I wouldn't believe anything those in power say about the banks.


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## RuthNaz (4 Jan 2011)

Thanks Ciaran & Sue. AIB are going to charge me an interest penalty of 72 euros. I am not keeping my money in the account for another 80 days so I'm just going to pay the penalty. 

@CashMoney - The obvious reason is I do not want my money in an insolvent bank that is guaranteed by an insolvent state. It is too risky.


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