# Where to safely deposit redundancy payment?



## glengar (13 Nov 2010)

If this is in the wrong place I apologise

I am due a fairly large redundancy shortly and would like to know can I deposit it offshore legally of course as i am very nervous regarding deposits in Ireland 

If possible how can this be done I want this money to be safe as its my retirement money

thanks

a very nervous 

Glengar


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## Sue Ellen (13 Nov 2010)

Hi Glengar,

Sorry to hear you are being made redundant and understandably you are nervous about placing your funds on deposit.

You may get some advice from the key post on AAM especially the Lump Sum Savings section.    This thread How is it going with the movement of your savings abroad  might help also.

Others here may disagree with me but if it were my money I would go for guarantees in different countries and to achieve this [broken link removed]  in Ireland would be covered to the extent of £50,000 under the Deposit Protection: UK Financial Services Compensation Scheme

The 2% interest rate is low but I would opt for it with [broken link removed] because €100,000 would be covered under the [broken link removed]

Another good website is www.itsyourmoney.ie for advice.  The Citizen's Information website should give you some advice on redundancy and check out if you are able to avail of top-slicing on your tax.

The redundancy forum on AAM should help also especially the checklist.

Hope this helps.

Sue Ellen.


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## glengar (13 Nov 2010)

Thanks Sue Ellen

Very Helpful


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## Paddyman (13 Nov 2010)

I think that this is a very important and informative post. I, like most people, am worried about the impact of our economics disaster on savings and the ability of the Irish Government to guarantee anything.
  How do you rate National Irish Bank - given that they are Danish owned? Are they as safe as the other banks mentioned?


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## Lightning (13 Nov 2010)

Sue - Great post. 

Paddyman - yes, they are Danish owned. They have a high credit rating but not as high as the parent of Rabo Ireland or the parent of Northern Rock.


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## Happy Girl (13 Nov 2010)

*National Irish Bank: eSaver* 
*3.00%* on €1 to €50,000
Note 1: Instant access.
Note 2: *Withdrawals reduce interest rate by 2.00% to 1.00% in the month of the withdrawal*.
Note 3: Interest paid annually. 
Deposit Protection: Danish Government Guarantee Scheme until September 30th 2010, Irish Deposit Protection Scheme only from October 1st 2010.


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## pilotsnipes (14 Nov 2010)

Happy Girl said:


> Deposit Protection: Danish Government Guarantee Scheme until September 30th 2010, Irish Deposit Protection Scheme only from October 1st 2010.



I know it says it there in black and white, but I just have to check. Does the above mean that any advantage of NIB being a Danish owned bank and having your deposits guaranteed by the Danish government has vanished since 1st Oct 2010?

If so, why are they, NIB, (now and again here on this forum) being recommended in the same way NationwideUK (Ire) and Rabbo and Northern rock are?

I am not talking about the interest rates here, mainly the "protection" of not being under the Irish guarantee scheme.

Am I just misreading?


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## cremeegg (14 Nov 2010)

I think that Sue Ellen misses a very important point about foreign banks operating in Ireland. While deposits may be covered by the governments in their parent countries, they (that is the Irish operations of non-Irish banks) are still subject to the laws of Ireland.

In the event of an Irish owned bank failing, (that is being unable to repay depositors even with govt help) it is likely that a law would be introduced limiting withdrawls from bank accounts.

Rabodirect or Nationwide UK would still have your money but you would be unable to withdraw it as and when you wished.

I first started posting on the possibility of a bank failure in late Sept and at that time I thought it was a remote threat. It gets less remote by the day.


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## Happy Girl (14 Nov 2010)

cremeegg said:


> .......Rabodirect or Nationwide UK would still have your money but you would be unable to withdraw it as and when you wished.....


 
I note this point cremeegg but if the issue is "safety of deposits" (ie not losing deposits in the event of a default) as opposed to "ability to withdraw funds" (ie deposits are safe but limited ability or freeze on withdrawing funds) surely it makes more sense and is a safer option to have funds with both Rabo and NationwideUK. Grateful for observations or opinions on this.


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## cremeegg (14 Nov 2010)

I think Happy Girl is right, it does make more sense to avail of the Dutch or UK govt guarantee. But it doesnt make me Happy Boy


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## Happy Girl (14 Nov 2010)

It's just so difficult to find a bank other than Keytrade who will facilitate a non resident deposit account without enormous minimum deposit amount requirements (which IMO is akin again to putting all eggs in one basket). I have opened a Keytrade account but have yet to deposit anything into it. I have an element of aprehension of depositing my hard earned cash into a bank outside of Ireland/England. It's a bit like the "divil I know" scenario. I feel that at least were a bank currently located in Ireland get into trouble I have the option of going to their branch office. If say Keytrade (or indeed any other bank located only in other European countries) were to run into problems my only means of contact with them is an internet logon site which could be shut down in the blink of an eye. Does anybody else feel like this?


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## crabbybear (14 Nov 2010)

pilotsnipes said:


> I know it says it there in black and white, but I just have to check. Does the above mean that any advantage of NIB being a Danish owned bank and having your deposits guaranteed by the Danish government has vanished since 1st Oct 2010?
> 
> If so, why are they, NIB, (now and again here on this forum) being recommended in the same way NationwideUK (Ire) and Rabbo and Northern rock are?
> 
> ...


 

Just to clarify - NIB are not now protected by Danish guarantee but Irish guarantee?  I have my money in Rabo (over 100k) but was thinking of putting some of it into NIB - not much point if covered by Irish guarantee?


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## pilotsnipes (15 Nov 2010)

Whilst I was waiting for someone else to confirm I did find this website:

wwwXmoneyguideirelandXcom/summary-of-deposit-guarantees-in-ireland.html

Looks like NIB is a waste of time for me, I had genuinely thought it was all backed by the Danish scheme and so had opened an eSaver account.

Ah well 

(remove the X's and replace with . in the address as I don't have 15 posts yet.)


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## pilotsnipes (15 Nov 2010)

Oh, and now I've just found a PDF file on NIB's website that says something a little different!
ARRGH!

wwwXnationalirishbankXie/PDF/Deposit-Protection.pdf

Page 6. Danish scheme covers up to 100,000 NET, the remainder up to 100,000 gross by the irish scheme. To be honest, I'm not sure I understand that 100%....


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## DocOc (15 Nov 2010)

Just rang NIB and they assured me (over the phone) that deposits are covered by the Irish and Danish protection schemes. Best check for yourself?


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## pilotsnipes (15 Nov 2010)

@DocOc
The fact that *any* of it is protected by the irish scheme means I'm not interested! Thanks for making the call !


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## Happy Girl (15 Nov 2010)

pilotsnipes said:


> @dococ
> the fact that *any* of it is protected by the irish scheme means i'm not interested! Thanks for making the call !


 +1


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## DocOc (15 Nov 2010)

No problem.  I am not sure but I think the first 40k is covered by the Danish scheme and the balance up to 100k by the Irish scheme. Totally open to correction though!


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## Lightning (15 Nov 2010)

I have updated the deposit protection in the best buys for NIB. 

The Danish government guarantee the first 100,000 DKK, the remainder, up to 100,000 EUR is guaranteed by the Irish government. 

100,000 DKK is about 14,000 EUR.


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## DocOc (16 Nov 2010)

CiaranT.
           If you have the time...In  relation to the Danish Guarantee can you have a look at the link on the NIB website which details the Danish guarantee and tell me what you think. I am not allowed to post the link. Apologies.


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## Dinzormf (16 Nov 2010)

does anybody know if there is any truth in the rumour that if IMF come into Ireland they may devalue savings?


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## cremeegg (16 Nov 2010)

Nope nobody knows. 

I suspect that that you are asking the wrong question. An alternative question would be, "if the IMF come into Ireland will they provide money for the banks to honour their deposits".

Nobody knows the answer to that either. But it is a very different question


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## kdoc (16 Nov 2010)

Are there any restrictions on driving up to Newry and opening an account in a UK bank?


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## squaw (16 Nov 2010)

Is it possible to have a Us Dollar or Australian Dollar account with any of the banks in Ireland?


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## Lightning (16 Nov 2010)

DocOc said:


> CiaranT.
> If you have the time...In  relation to the Danish Guarantee can you have a look at the link on the NIB website which details the Danish guarantee and tell me what you think. I am not allowed to post the link. Apologies.



Sorry for any confusion on the Danish protection. I have re-read the website and it appears that the Danish authorities will protect the first 100,000 EUR also. 

Can someone please confirm that this is their understanding as well ?

(Bloody Google Translator !!)


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## Lightning (16 Nov 2010)

kdoc said:


> Are there any restrictions on driving up to Newry and opening an account in a UK bank?



No restrictions, most NI banks accept UK banks accept ROI proof of address.


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## Lightning (16 Nov 2010)

squaw said:


> Is it possible to have a Us Dollar or Australian Dollar account with any of the banks in Ireland?



Yes, PTSB offer both USD and AUD bank accounts. The rates are on their website.


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## eliza (16 Nov 2010)

CiaranT said:


> Sorry for any confusion on the Danish protection. I have re-read the website and it appears that the Danish authorities will protect the first 100,000 EUR also.
> 
> Can someone please confirm that this is their understanding as well ?
> 
> (Bloody Google Translator !!)




National Irish Bank customers are covered up to a
maximum of €100,000 on a net basis under the
Danish Guarantee Fund for Depositors & Investors
with any balance (up to a maximum of €100,000 on
a gross basis) covered under the Irish Deposit
Guarantee Scheme.
Gross basis: The deposit account balance is not
netted against the depositor’s liabilities to the credit
institution with which that account is held.


[broken link removed]


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## Lightning (16 Nov 2010)

Cheers, best buys updated.


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## Paddyman (16 Nov 2010)

pilotsnipes said:


> Oh, and now I've just found a PDF file on NIB's website that says something a little different!
> ARRGH!
> 
> wwwXnationalirishbankXie/PDF/Deposit-Protection.pdf
> ...



From my reading of the situation, it appears as if the Danish scheme is limited to 100,000 Danish Kroner (just over €13,000). The remainder is guaranteed by Cowen, Lenihan, Gormley & Co. in Dublin.

Of course, I do stand to be corrected or have my pockets picked - as  the case may be!


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## marksa (19 Nov 2010)

Paddyman said:


> From my reading of the situation, it appears as if the Danish scheme is limited to 100,000 Danish Kroner (just over €13,000)
> 
> Of course, I do stand to be corrected or have my pockets picked - as the case may be!


Incorrect, Eliza has the link and the figure is 100,000 euro net by Danish Scheme, not 100k Danske Kroner


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## farmerette (19 Nov 2010)

squaw said:


> Is it possible to have a Us Dollar or Australian Dollar account with any of the banks in Ireland?


 
i know you can have a dollar ( american ) account with permanent tsb , you cannot open an australian dollar account with any of the irish banks 

hsbc offshore are an option


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## Lightning (20 Nov 2010)

farmerette said:


> i know you can have a dollar ( american ) account with permanent tsb , you cannot open an australian dollar account with any of the irish banks



Yes you can !!

PTSB offer AUD accounts. See their foreign deposit section on their website.


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