# Rabo - Guarantee on investment



## lexus (13 Apr 2008)

My partner and I have 3 rabo accounts. could I just ask, in the event rabo bank does go under, do the guarantees apply to each account we hold or to one account only?  thanks


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## RaboDirect (14 Apr 2008)

lexus said:


> My partner and I have 3 rabo accounts. could I just ask, in the event rabo bank does go under, do the guarantees apply to each account we hold or to one account only? thanks


 
This question has been discussed quite a bit about Rabobank and other banks on AAM. This [broken link removed]from the Help section of our website should answer your question regarding the Deposit & Investor Protection Scheme. As Rabobank is primarily regulated by the Dutch Cental Bank we are part of the Dutch protection scheme. In addition, Rabobank is Ireland's only AAA-rated bank and has consistently held these ratings for over 25 years. For more information on our credit ratings please see [broken link removed] from the rabobank.com site. 

RaboDirect


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## lexus (14 Apr 2008)

it is not a question about credit ratings I am asking, or your credit grading.

The question i was asking is if the amounts Rabo guarantees, apply to individual accounts, (meaning all 3 of our accounts would be guaranteed seperately) or to account holders (meaning we would only be guaranteed to a max between all 3 accounts)
 
If you could answer this it would be appreciated.

Regards


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## Towger (14 Apr 2008)

It is per customer, not per account.


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## RaboDirect (14 Apr 2008)

Please refer to this [broken link removed]on the Help Section of our website detailing examples of how the deposit protection scheme works. 


For a single customer with a total balance of €20,000, that customer would be reimbursed the full €20,000 under the Deposit Guarantee System.

For a single customer with a total balance of €50,000, that customer would be reimbursed the full amount of the first €20,000 under the Deposit Guarantee System, and 90% of the next €20,000 i.e. €18,000, so that customer will get back a total of €38,000 under the Deposit Guarantee System.

For two people with a joint account with a balance of €20,000, 50% of that balance would be attributed to each person (i.e. €10,000) and each would be reimbursed €10,000 under the Deposit Guarantee System.

If a customer has a single account and a joint account, the customer will only get paid out once.  So if the customer has a single account with a €20,000 balance, and a joint account with a €50,000 balance, that customer will receive back €20,000 guaranteed.  That customer would have a right to 50% of the joint account (i.e. €25,000) and would have a 90% guarantee of up to €20,000 of that, receiving €18,000 back from the joint account.  The other joint account holder would be assessed separately on the balance of the €25,000 in the joint account. 

If you hold an account in the name of a child, the child's account is afforded the same protection under the scheme and is assessed in its own right, separate from any accounts held in the name of the adult who manages the accounts on behalf of the child.


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## theoneill (14 Apr 2008)

There was an interesting article in It’s Your Money this month regarding the state protection of bank deposits. Basically any Irish regulated bank has 90% protection up to a maximum of 20K. Rabo and NIB being regulated by foreign countries have much more generous protection (about double I think). 
Interestingly Credit Unions offer no state protection.

In the unlikely event I have many thousands to put on deposit I may spread my cash between several institutions to ensure I get the maximum level of protection.


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## lexus (14 Apr 2008)

towger

thanks for that simple answer!

the oneill

thats the situation I am in. We have a about a 3 month wait until we actually close on our new house and we're worried about where to put the equity in the mean time.
by NIB do you mean National Irish Bank?


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## theoneill (14 Apr 2008)

[FONT=&quot]Yup NIB is National Irish Bank, but they're actually owned by Danske Bank[/FONT]


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## LDFerguson (14 Apr 2008)

Have ye read this thread and ?


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## ClubMan (14 Apr 2008)

_Northern Rock_ deposits and interest are 100% guaranteed and they offer a good rate on demand deposits. If I had the money for a house to put on deposit for a short period I would probably look no further.


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## lexus (14 Apr 2008)

club man thanks a million for that, will look into opening one of these accounts now, we will only have the money for max of 10 weeks, thanks again


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## lexus (14 Apr 2008)

just thinking about this, if NR are offering 100% guaranteed accounts and 5% on interest why are people still saving with rabo? I know I will me moving all of our money now.


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## oldtimer (14 Apr 2008)

People have moved away from NR because of the scare re bankruptcy last September. Many lost confidence with NR and withdrew their money. I suppose one would assume people are still nervous about NR. Personally I have no problem saving with them since they are 100% guaranteed by the British Treasuy. Why are people still saving with rabo? Well I doubt if people are still flocking to them in the same numbers since they abolished the 5% on the first €10,000. Having said that I suppose people are impressed and feel very secure with their AAA rating.


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## minion (19 Apr 2008)

this has got me thinking.
Rabobank.  If a person had €100K invested in Rabobanks funds and €20K on deposit.  How much of their money is guaranteed in the event of a collapse in the bank (assuming value of investments stayed at 100K)?


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## LDFerguson (19 Apr 2008)

minion said:


> If a person had €100K invested in Rabobanks funds and €20K on deposit. How much of their money is guaranteed in the event of a collapse in the bank (assuming value of investments stayed at 100K)?


 
Only the €20,000 that's on deposit.  It's a deposit protection scheme.  The €100,000 would be invested in funds.


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## RaboDirect (29 Apr 2008)

LDFerguson said:


> Only the €20,000 that's on deposit. It's a deposit protection scheme. The €100,000 would be invested in funds.


 
Note that as Rabobank is licensed by the Dutch Central Bank the thresholds on deposit protection are currently higher than those of banks regulated by the Financial Regulator in Ireland. See [broken link removed] for examples of how the Dutch scheme operates.

Re Investor protection, currently the only investment products available through RaboDirect are the managed funds that we distribute on behalf of JP Morgan, BlackRock, Oppenheim, Robeco and Henderson Global. We do not own or manage these funds ourselves. However, an investor may ask the question, "what happens to my investment if say, BlackRock defaulted?" Please see this FAQ on the matter: [broken link removed]

RaboDirect


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## ClubMan (29 Apr 2008)

And as mentioned earlier _NR _guarantee 100% of deposits and interest right now and offer 5% on any demand deposits of €1K+.


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