# German Euro Account



## appd (20 Jun 2012)

Hello,

I am currently trying to weigh up whether it would be better to transfer my savings to a UK Sterling account or a German Euro account.

One thought that crossed my mind was that in the event of a eurozone breakup, when it came time for the German government to convert all euros in the countrys bank accounts what would be there to stop them only converting RESIDENT / Corporate Accounts to the new Deutchemark and converting all NON RESIDENT funds to the new currency of the country of origin on the account?

I can imagine at the moment that German banks are bulging at the seams with foreign money.

If this were the case, i could end up back where i would be by taking no action, i.e. with a pot of devalued "new" PUNTS.

Would anyone venture an opinion on whether this is plausible or not?

Regards.
APPD.


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## captain-kirk (22 Jun 2012)

that would be a worse case senario. but remember it would also devalue the amount of money they are holding and it would also cause a run in their banks this would cost them money as well. they could also be opening themselves up to legal action as the owner would experience a loss. 

there are other reasons what if the non resident acc is owned by a german national living in ireland 

what im saying is it wouldn't be in their interests and it would be tricky/expensive to implement


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## kdoc (22 Jun 2012)

All is not quite well in Germany:

http://www.businessinsider.com/german-flash-pmi-2012-6


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## captain-kirk (25 Jun 2012)

possibly a problem but nobody here is suggesting that you invest in germany just depositing money in their well regulated banks there is a slight difference.


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## celebtastic (25 Jun 2012)

appd said:


> Hello,
> 
> I am currently trying to weigh up whether it would be better to transfer my savings to a UK Sterling account or a German Euro account.
> 
> ...


 
There was a thing on the early business news on BBC Radio 4 this morning about this.

In the event of a eurozone breakup the speaker posited there is a real risk that German banks may not be able / permitted to convert Euro accounts into DMs.

My own sense is that it might be less risky to transfer your funds into a UK or US based account denominated in USD or Sterling. You will still face the currency risk - but few people feel the euro will appreciate against many other world currencies any time soon.


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## NorthDrum (29 Jun 2012)

It is so hard to advise people on where to put their money these days.

I have looked at as many scenarios as possible and its virtually impossible to find any sort of safe Haven.

In this scenario "German Euro Account", there is nothing to stop the Germans saying that these funds will be paid back at the punt exchange value (at time of Ireland exiting the Euro) , or the Germans putting a huge levy on foriegn based deposits or the Irish Government putting a huge levy on foreign based deposits.

German gilts are the same. As one stockbroker I know put it, the reason that so much money is going to Germany is because of the perception of what might happen if the Euro folds. The perception is that Germany will be in the best position to recover, but its not to say they wont do any of the above things (levy etc) or that your savings will not get savaged in some way.

It really is impossible to predict what could happen because if the Euro collapses, all bets are off and nothing is safe. Physically holding cash in a safety deposit (Sterling/Dollars) is what some people have suggested, but looking at an Armageddon scenario, what if the bank that holds the safety deposit goes under ? I know its a stretch, but how do you get access to your safety deposit ? You wouldnt want to assume that there would be an orderly winddown.

The popular currencies outside of the Euro are in Norway, U.S., Canada, Australia and Sterling.

I am looking at several differant ways of trying to "hedge" that includes German bonds, KBC (belgian bank) fixed deposit rate of 4.25% PA and diversified investment plans in Irish Investment offices. Having a bit of sterling and Dollar is no harm even from a practical standpoint because even if the currency goes down in value, the client has intentions of travelling to both places. I make it clear to clients that its not fullproof  and that they might lose money (you dont make anything on German bonds) but it gives them at least a chance if the world collapses!


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## Kev (1 Jul 2012)

I would not put money into sterling at present, there is so much going on with the banks and it is not all good.

http://www.thisismoney.co.uk/news/a...charges--But-Miliband-want-blown-inquiry.html


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