My anecdote: I think Brendan's "
Protecting your savings against a euro breakup" article is accurate and worth reading ... but it also basically says there are significant risks no matter what you do. Also, depending on how things pan out, some safety measures may be self-defeating or may lose you money in the long run.
What I've done with a large sum is to put it on deposit with the State and a number of banks operating in Ireland, some that I would consider safer than others, at a range of interest rates and investment terms. I did this last year, based on tip-offs here on AAM, before interest rates fell precipitously.
My rationale is this: a decent interest rate for 3 to 5 years will insulate you to some extent from a 10 to 20% deposit haircut should the worst come to pass. (Ok, I know that worse is possible). Of all the other options (putting money abroad etc.) none of them guarantee that you won't get caught for haircuts or arbitrary taxes, and most of them give you little or no return to offset against this.
For anyone doing the same thing now, obviously the rates are all lower, so the rationale is different. I'm going to have to cross that bridge over the next couple of years as deposits mature. Right now I have no idea. I'm not sure I'd consider any bank interest rates available now worth the risk. The longer term State savings might still be worth it, although the comparison to last years rates is depressing.
