AIB Special Term Deposit A/C

Hi

My father has lodged his life savings in 2 AIB Special Term deposit A/C's, a 3 and a 5 year account.

His 3 Year account will mature in October next year, both accounts were opened at the same time.

He is 59 years of age and is very worried that with all the talk of AIB going to the wall and the threat of the country going broke that he will lose his savings, he cant sleep with the worry.

He has met the bank and they are refusing to let him withdraw his money as per T&C's.

I have a few questions

1: Can someone please tell me should he be worried about losing his money?

2: I understand that the banks are state guaranteed but what happens if the IMF come in next year, does that state guarantee still stand then?

3: Can the bank really refuse to allow him to withdraw his money under these circumstances?

Thanks in advance

Mac

1) There is nothing he can do. His money is locked into a term deposit and a loss for a deposit holder in AIB is unlikely.

2) The IMF are likely to come in as part of the ESFP. The ESFP are highly unlikely to end the guarantee before it's expiry which is currently December 31st 2010.

3) Yes, if he is inside a term deposit.

Thanks for the reply, Isnt the govt talking about extending the guarantee for personal deposits?

Mac

The blanket guarantee currently expires on December 31st 2010. An extension is not yet confirmed.