Hep- I'm an inexperienced newbie! €10000 to deposit

Hep- I'm an inexperienced newbie! I have €10,000 which I was going to deposit for about a year with PTSB. I just want to get some interest going, I don't need the money in the immediate future. I was all set to go into PTSB tomorrow but after reading this forum, I'm scared. Is it true that if Ireland does go 'bust', all my savings could just vanish too?

Would Rabo be a safer option? Don't really have a clue to be honest, don't know anyone who I could ask.

Please help!! I appreciate it

kaji84 said:

Is it true that if Ireland does go 'bust', all my savings could just vanish too?

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It looks like you are an anxious person like me. In that case my suggestion is to move your savings to Rabo asap and you might consider opting as well for accounts abroad as we are discussing in this thread:
http://www.askaboutmoney.com/showthread.php?t=143938

I am getting slightly worried like everybody else.I have 25,000 with Anglo and 30,000 with EBS.I have a mortgage of 175,000 with EBS.I was reluctant to pay off mortgage as I have a very good tracker deal.Should I put all savings in EBS? In worst case scenario would savings/mortgage be devalued in equal proportion? Or could IMF/EU come along and say your 55,000 is now worth 40,000 but you still owe 175,000.

Nobody knows for certain. Most likely, and there is some international precedent, the debt and savings would be netted.

CiaranT said:

Nobody knows for certain. Most likely, and there is some international precedent, the debt and savings would be netted.

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Whats the precedent?

See this thread about the collapse of a Dutch bank.

The surprising collapse of DSB bank today has shed some interesting light on how the Dutch deposit guarantee works.

As per the Financial Regulator website, in Ireland, Rabo falls under the Dutch deposit scheme.

There are some interesting points in this RTE Business article on the DSB collapse, about how the Dutch deposit guarantee works.

1) Debts are offset against deposits

Though deposits are guaranteed up to €100,000, the central bank's website says they are also offset against debts. A customer who has both savings and a mortgage with the bank, in other words, will have their savings credited against the mortgage balance and will not be able to get cash back.

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2) There is a 3 month wait for compensation

customers will have to wait up to three months to get their money back via the state's deposit guarantee scheme.

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3) ATM access is frozen after 3 days.

Customers of the bank are no longer able to access their money except by ATM withdrawal, which will only be available until midnight on Wednesday.

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One other interesting quote ...

DSB competitors are likely to feel the pain too, as the deposit guarantees are funded partly by other Dutch banks

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