Moving 6 Figure Sum from AIB to Rabo - Notice Period Issues

R

RuthNaz

Guest
I am looking to move my savings from AIB to Rabo for obvious reasons.

The problem is I have my savings in a 90 day notice account in AIB. Is there anyway around the 90 day notice? I gave my notice to AIB just before Christmas, but I really do not want to wait out the remainder of my notice period. Any advise? Thanks.
 
I assume you have this account: [broken link removed]. The interest rate is very low on this AIB account.

The T&C's say:

One instant, notice-free withdrawal of up to EUR2,500 is allowed within a 90-day period and no early withdrawal charge applies.
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Hence, you can move 2,500 EUR straight away. If you want to move your money faster, I suggest you ask AIB if they will allow a withdrawal of the remainder subject to a penalty.

I also suggest you use the remainder of your notice period to start the account opening process at Rabo. Rabo account opening can sometimes take a while.
 
CiaranT said:
I also suggest you use the remainder of your notice period to start the account opening process at Rabo. Rabo account opening can sometimes take a while.
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I also think it is a good idea especially as you will have time to wait out to do a test move i.e. do a transfer of a small amount to ensure that you have the correct procedures (account details etc.) in place.

AFAIK the daily inter-bank transfer max with AIB is €5,000 on working days only.
 
Sue Ellen said:
AFAIK the daily inter-bank transfer max with AIB is €5,000 on working days only.
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Yeah, online banking at AIB has a 5,000 EUR limit. Branches can do larger wires.

If you do it online it might take another 90 days to get your money out of AIB. Best to do in the branch to your Rabo account once your 90 day notice period is up.
 
CashMoney said:
Eh....it's not? The state/EU/IMF has seen to that.
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UFC is correct. AIB are almost certainly very close to being insolvent. Here is some wonderfully detailed analysis by Nama Wine Lake blog on the solvency issue at AIB:

http://namawinelake.wordpress.com/2010/12/20/is-aib-insolvent/

When new funds when transferred to AIB, this will temporarily help this situation at AIB.

Since 30th June, 2010 Tranche 2 and Mini-tranche 1 and 2 have been transferred and the haircut on these has been €8.724bn. That means that today AIB is left with a balance from June 30th, 2010 NAMA-bound loans at par value (less the transfers to date) of €5.175bn with a remaining provision of minus €4.224bn. If the remaining balance of €5.175bn of €5m+ exposures is to have a discount of 60% that means that AIB needs book a loss and provision for future losses of €7.329bn today. Ouch!

However since June 2010 it has been decided that AIB must also transfer land and development exposures of €0-5m. Along with BoI the total €0-5m exposures is estimated to be €10bn. The split between AIB and BoI has not been revealed but it was previously reported that the €5-20m exposures totaling €6.5bn were split €4.4bn to AIB and €2.1bn for BoI. So on that basis you might expect AIB’s €0-5m exposures to total well over €5bn.

AIB’s non-NAMA commercial property was provisioned at 15% approximately in June 2010. If AIB transfers half of the €0-5m exposures and they attract a 60% haircut (the betting is that it will be higher as the lower value loans relating to land and development are likely to have fallen 75-90%) then AIB will need an additional €2.25bn provision (€5bn at (60%-15%)). These loans are supposed to be transferred by year end.

So exclusively examining AIB’s NAMA lending it would seem that capital has dropped from €9.466bn in June 2010 by €7.329bn to €2.137bn today. So whilst not insolvent, capital of €2.137bn on €81bn of non-NAMA loans would certainly be in breach of the Financial Regulator’s capital requirements. And should AIB transfer its €0-5m exposures at a 60% haircut and assuming €5bn of such exposure at par value then the bank will be insolvent. Of course AIB has been trying to raise capital from the disposal of non-core operations. EU approval of the sale of AIB’s 70.5% share in Bank Zachodni in Poland to Santander is expected shortly which will contribute €2.5bn. The sale of the bank’s share in M&T contributed €0.9bn in capital but that will prevent the bank breaching its capital requirements today and it would only mean minimal solvency once the estimated remaining €0-5m is transferred .....
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CiaranT said:
UFC is correct. AIB are almost certainly very close to being insolvent.
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OK, so they are not insolvent then? There is quite a difference between being insolvent and "almost certainly very close to being insolvent".

I was questioning the OP on the urgency to move funds from AIB into Rabo. It's obvious that the AIB is in difficulty, but it is also obvious that the state/EU/IMF are not going to allow any irish banks to fail at this stage.
 
AIB are not illiquid. That is for certain. They would not be trading if they were illiquid.

As Nama Wine Lake said, there is very good reason to question their solvency. As I said, when the new funds are transferred to AIB it will help their solvency situation and yes the IMF and others are obviously trying to address this issue at AIB
 
CashMoney said:
it is also obvious that the state/EU/IMF are not going to allow any irish banks to fail at this stage.
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I don't know if it is obvious. I would say it is likely, but who knows? Maybe 2011 will be the year the banking mess is sorted out once and for all. (Pumping billions into the banks doesn't seem to be sorting out the problem, so maybe a more drastic - kill the zombie banks - solution will be used...)

Certainly I wouldn't believe anything those in power say about the banks.
 
Thanks Ciaran & Sue. AIB are going to charge me an interest penalty of 72 euros. I am not keeping my money in the account for another 80 days so I'm just going to pay the penalty.

@CashMoney - The obvious reason is I do not want my money in an insolvent bank that is guaranteed by an insolvent state. It is too risky.
 
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