Deposit query re AIB

W

Westgolf

Registered User
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Hi all,

I have 90k on deposit with AIB on a 3yr basis at 3.45%. This commenced in may 2009 so I'm approx half way through the term.Following on from the increase of government shareholding (and therefore ownership) this week I'm wondering if I should move my funds. I realise that If I do move I will not get a great rate and will possibly have a cost to bear for withdrawing early but what do you think and what would you do ?

any / all comments welcomed

Westgolf
 
Your money is Irish state guaranteed.

If you deem this as sufficient, keep the money with AIB, for the next 1.5 years. What you have is one of the rare AIB high paying savings accounts.

If you deem this as as insufficient, check out the exit fees before you withdraw.

There is certainly good reason to consider removing your deposits from AIB.
 
I would think you are best getting your money out of AIB. Fast. The Irish government simply does not have the funds to cover the liabilities of INBS, Anglo and AIB. Something will give, sooner or later.

The risk is far too high in keeping your money with the Irish state (AIB). Close your deposit with AIB and move it away from Irish state banks.
 
On a slightly related note, The Tribune are reporting that there has been a big outflow of deposits from AIB and other irish banks:

http://www.tribune.ie/business/news...ay-on-bank-guarantee-sparked-fund-outflow-an/

Fears over whether the European Commission (EC) would delay sanctioning an extension to the state's bank guarantee led to an outflow of funds from the Irish banks and persuaded the government to bring forward its announcement of the recapitalisation of AIB, according to senior political sources.

The drama hit the Irish banks over two weeks ago in the middle of negotiations between the government and the EC, when Brussels appeared to be slow in agreeing to the extension of the guarantee. Some large corporations, it is believed, moved funds out of Irish banks.
Click to expand...

This would help explain the increase in deposit rates by some Irish banks in recent weeks.
 
I was in AIB this morning transferring some money out of the bank. Lots of people making withdrawals. I had a bit of a struggle myself. Various referrals to managers, countless obstacles and it took a good hour to get my money out of the bank. It could be coincidental.
 
If you believe this article, money has been flowing out - nearly 20% of all deposits gone in the January-June period. Who knows what it's like now.

guardian.co.uk/money/2010/sep/30/anglo-irish-bailout-savers-protection

"The Irish government has long claimed that customers with savings in all of Ireland's major banks are safe. It extended a 100% deposit guarantee to all Irish-owned financial institutions in 2008 until 29 September 2010, and this has recently been extended to the end of the year. But panicked savers have continued to withdraw their cash – in the first half of this year customer deposits fell by more than €5bn to €23.1bn."
 
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