# What rate difference would you deposit over €100,000 for?



## alwaysonit (24 Jun 2013)

Seeing as deposits are only protected up to €100,000 how many extra % of interest do you think would make it worth investing more than this with the same institution?

Been trying to gather figures, probability of default etc, I've decided so far that 0.2% seems like a good benchmark seeing as this is what the covered institutes have to pay into this fund annually so it should be a good indicator of the probability of default each year on average.


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## Lightning (25 Jun 2013)

Interesting question, not an easy think to calculate. 

I would think that many people would want more than a 0.2% premium before putting more than 100,000 EUR in PTSB.


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## Palerider (25 Jun 2013)

Do not exceed the guarantee on PTSB deposits, never exceed the guarantee on any institution.


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## daheff (26 Jun 2013)

I would expect 100% interest to put in over 100K in any financial institution !


Just look at what happened in Cyprus. its going to happen again somewhere soon...and i wouldnt be surprised if Greece/Ireland are the ones that get hit with this.


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## SoylentGreen (27 Jun 2013)

Palerider said:


> Do not exceed the guarantee on PTSB deposits, never exceed the guarantee on any institution.



Are Savings Bonds and Savings Certs and other such products treated differently when referring to bank guarantees?  Should we keep less than €100k in these products?
Now that we have to give our PRSI number with every bank account that we open, is it just a matter of time when spreading our money around the various banks, that this effort becomes pointless. At some stage the powers that be will just link your PRSI number to all your accounts and treat them as one big account?


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## Lightning (27 Jun 2013)

SoylentGreen said:


> Are Savings Bonds and Savings Certs and other such products treated differently when referring to bank guarantees?



NTMA State Savings products are protected to an unlimited level via the Irish government sovereign debt guarantee. 



SoylentGreen said:


> Now that we have to give our PRSI number with every bank account that we open, is it just a matter of time when spreading our money around the various banks, that this effort becomes pointless. At some stage the powers that be will just link your PRSI number to all your accounts and treat them as one big account?



The guarantee is clearly per financial institution. I would be surprised if that changes.


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## dub_nerd (27 Jun 2013)

alwaysonit said:


> Seeing as deposits are only protected up to €100,000 how many extra % of interest do you think would make it worth investing more than this with the same institution?


 
Eight months ago, I said 2 or 3%, and acted on that basis, tying money up for 3 and 5 years. Almost immediately, Cyprus happened, and now the EU has decided that depositors will be bailed in for future bank crises. Great! My timing was impeccable.


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## camlin90 (27 Jun 2013)

Technically, you could calculate the margin as the probability you think the bank will default over the period, multiplied by the loss you think you would take on default, grossed up for tax.

If you think there's a 10% probability depositors over €100K will be asked to take a 20% hit in 5 years time, and you're depositing €200K your expected loss is 
50% * 10% * 20% = 1%
where 50% is your exposure.

So you should get at least 1% / (1-39% Tax) / 5 = 0.33% pa to compensate the risk


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## K-Man (2 Jul 2013)

SoylentGreen said:


> Are Savings Bonds and Savings Certs and other such products treated differently when referring to bank guarantees?  Should we keep less than €100k in these products?
> Now that we have to give our PRSI number with every bank account that we open, is it just a matter of time when spreading our money around the various banks, that this effort becomes pointless. At some stage the powers that be will just link your PRSI number to all your accounts and treat them as one big account?



Good point re the PPS number. Keen to get views on this point from all of you experts. Should anyone with more than €100k lying around be moving the excesses into other investment forms, equities etc. to be on the safer (albeit riskier in some cases) side?


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## Lightning (2 Jul 2013)

K-Man said:


> Should anyone with more than €100k lying around be moving the excesses into other investment forms, equities etc. to be on the safer (albeit riskier in some cases) side?



At the very least, spread your 100k+ deposits over multiple institutions as a first port of call.


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## scallywag (28 Jul 2013)

Just from reading this and other threads, I got the impression that if you had anything over €100,000 in one institution then you would not be covered by the deposit guarantee scheme _at all_. However a little investigation revealed that no matter how much you have on deposit, you are covered _up to_ €100,000.

I think it's important to note this, whatever about the actual value of the guarantee in various circumstances.


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