# Safety of Deposits with PTSB



## floboat (25 Mar 2014)

How safe is it to have above 100 k in ptsb,I have a few different acs up to 150 k.is there any immediate threat,with talk of stress tests etc.


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## Lightning (25 Mar 2014)

PTSB, have had a survival plan with the EC for years now. The EC have still not approved it. The plan has been subject to much EC / DoF / IMF / ECB debate. The last official deadline for approval was 31 March 2014. I suspect this deadline might be missed again. 

This week, Draghi, inadvertently, called into question the viability of PTSB as an entity in a letter to Michael McGrath. 

Also, Noonan is known to be proposing to merge PTSB with Ulster Bank or KBC. There is no clear indication that RBS will definitely pursue this, although they have shown some initial interest. 

Also, there is no clear intent as to what to do with the PTSB segregated bad bank. Nama? Certus?

The direction of the wind seems to be that either PTSB has to be acquired, merged or shut down. Soon. It seems that the DoF are doing all they can to avoid the shut down option. It seems that the EC / ECB are upping pressure for a speedy resolution of this lengthy saga. 

PTSB need a white knight in the shape of RBS or KBC or private equity speedily. 

It may be wise to keep deposits under the deposit insurance level of 100k until there is more certainty with regard to their future.


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## kmick (26 Mar 2014)

Given what happened in Cyprus
http://www.theguardian.com/world/2013/mar/25/cyprus-bailout-deal-eu-closes-bank
it is neglient on your part to keep anything above 100k in ANY bank. Joint accounts can have 200k in them. Split it up Nationwide UK, BOI, AIB, PTSB, RABO


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## paddyd (5 Apr 2014)

Considering the above, is it wise I wonder that PTSB dominate the top four places of the Best Buy board for the lump sum deposits? Fair enough the rates are indeed the best, however I think I'd pick the BoI rate at 2.3% before the PTSB rate at 2.4%; with dirt so high now, there really is little difference in monetary terms


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## Lightning (5 Apr 2014)

paddyd said:


> Considering the above, is it wise I wonder that PTSB dominate the top four places of the Best Buy board for the lump sum deposits?



The top of the best buys is determined solely based on the highest rate on offer. PTSB offer the highest instant access rate and many of the highest term deposit rates. 



paddyd said:


> Fair enough the rates are indeed the best, however I think I'd pick the BoI rate at 2.3%



Which BoI product pays 2.3%?


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## roland (7 Apr 2014)

paddyd said:


> Considering the above, is it wise I wonder that PTSB dominate the top four places of the Best Buy board for the lump sum deposits? Fair enough the rates are indeed the best, however I think I'd pick the BoI rate at 2.3% before the PTSB rate at 2.4%; with dirt so high now, there really is little difference in monetary terms



I suppose it would be clearer if Bank of Cyprus was added in.  I'd say you'd get a great rate there.  And sure borrow in yen to invest while you're at it.  If there's a problem with ptsb, people will turn around and demand why they weren't told.  Why someone hadn't told them their decision to get that extra 0.5% has now cost them everything over 100000.  As someone who was in Cyprus and met people, learn a lesson here people.  Why the biggest crisis in generations hasn't taught them a lesson.  Why it's someone else's fault.  Not for the first time in their lives will they hear that when you get a higher return you are taking more risk.  Not for the first time will they hear you shouldn't put all your eggs in one basket.  Cue Father Ted music.  I wouldn't be entirely sure that the extra return on this one is compensating the punter for the extra risk.  But sure go on go on.....


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## happypat (29 Apr 2014)

CiaranT said:


> It may be wise to keep deposits under the deposit insurance level of 100k until there is more certainty with regard to their future.




 If I have a mortgage with PTSB and a deposit will they cross one off against the other?  So if I have €150k deposit and a €50k loan am I ok under the guarantee? or could I lose €50k of the deposit and still owe the loan?


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## Lightning (30 Apr 2014)

happypat said:


> If I have a mortgage with PTSB and a deposit will they cross one off against the other?  So if I have €150k deposit and a €50k loan am I ok under the guarantee? or could I lose €50k of the deposit and still owe the loan?



In the unlikely event of the state deposit insurance being called on, debt is netted with deposits.


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## North Star (30 Apr 2014)

Hi Ciaran, are you sure on this? I thought that there was no set off, from either direction i.e the bank would expect to be paid on the mortgage whether or not you had deposits with them and the DGS likewise only considered the deposits and did not look at the customers net position with the bank. Set off would only be considered by the Liquidator if appropriate.
http://www.centralbank.ie/paycurr/paysys/dgs/Pages/about.aspx

Regards Vincent


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## Sunny (30 Apr 2014)

NorthStar is correct. Set off would not apply with the activation of the State Guarantee unless you have pledged the money in the deposit account as collateral or you are in arrears on your loans in which case the amount of arrears would be offset against the deposit.


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## Lightning (30 Apr 2014)

The wording on the deposit insurance was (or perhaps used to be) :



> Setting-Off of Debts
> In normal circumstances, *debts owed to the institution by the depositor will be deducted from the aggregate deposit balance in calculating the compensation payment to be made to the depositor*



Also, when European banks have collapsed, during the crisis, deposits were net with debt before the appointment of a liquidator. 

Maybe, things have changed? I appreciate that the above wording does not appear to be on the CBI website anymore.


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## Ryan (30 Apr 2014)

I don't know anything about set offs against debts but €100,000 is guaranteed.
I don't know anything about your situation but with such substantial savings would you consider paying off the debt so that way you have around the 100k limit?


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