Deposit guarantee

[kev53]

Why are people so worried about spreading their deposit between different institutions? The first 100K is covered by Deposit Guarantee Scheme and anything >100k in any institution is covered by Extended Liabilities Guarantee. Hence does it matter if all cash is in one Institution or several?? (Ignore the outside europe deposit options).

 

[Godfather]

Everyone perceives the reality the way they want. If someone is fine with Anglo, I wish them all the best. If someone prefers Rabo, I understand them. If someone has moved their life-savings abroad, I would tell them I did the same.

 

[kev53]

Thats a slightly different issue godfather. But I see people online looking for advice in depositing sums>100k in different instititions. But why?? If someone has 200k in Bank of Ireland, their money is "as much guaranteed" as if they had 100k in Bank of Ireland and 100k in the post office. i.e. 100k by Bank deposit guarentee and 100k by Eligible Liabilities Scheme. So why bother moving!!! (ignoring the overseas options, which godfather availed of)

 

[Slim]

Thats a slightly different issue godfather. But I see people online looking for advice in depositing sums>100k in different instititions. But why?? If someone has 200k in Bank of Ireland, their money is "as much guaranteed" as if they had 100k in Bank of Ireland and 100k in the post office. i.e. 100k by Bank deposit guarentee and 100k by Eligible Liabilities Scheme. So why bother moving!!! (ignoring the overseas options, which godfather availed of)

I think part of it is that if one institution goes belly up and the Guarantee is called in, the depositor may have half their capital in another insititution and therfore available to them while the Central Bank sorts out the guarantee. Slim

 

[Godfather]

I think part of it is that if one institution goes belly up and the Guarantee is called in, the depositor may have half their capital in another insititution and therfore available to them while the Central Bank sorts out the guarantee. Slim

Exactly, if one institution freezes there is more likelyhood to try and pick up the money for buying the bread from another one... Sorry if I didn't focus on the "spreading" query...

 

[kev53]

I think part of it is that if one institution goes belly up and the Guarantee is called in, the depositor may have half their capital in another insititution and therfore available to them while the Central Bank sorts out the guarantee. Slim

Ok, that makes sense!