Where to put large deposit for short term
- Thread starter sonya2
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Steven Barrett
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Stick it in any bank. You can easily set up a deposit account with your current account provider. With interest rates non existent, you won't lose out on a return.
The thing you will need to watch out for is being charged to hold such a large amount on deposit. At present, €1m is the threshold where some banks are charging customers to hold cash. That can quiet easily be brought down. If so, they will tell you and you can open another account with another bank and split it.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
The thing you will need to watch out for is being charged to hold such a large amount on deposit. At present, €1m is the threshold where some banks are charging customers to hold cash. That can quiet easily be brought down. If so, they will tell you and you can open another account with another bank and split it.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
In light of the guarantee offered by the Irish Government Deposit Guarantee Scheme wouldn't it be better to split it in any case. €200,000 per institution for a couple. AIB, EBS and Bank of Ireland (who will probably have charges by then ) and see what other banks are still lurking at that stage in Ireland
Brendan Burgess
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Hi Sonya
Do you know where you want to buy a house when you return?
It might be better to just buy that house now if you see one that you like.
Brendan
Do you know where you want to buy a house when you return?
It might be better to just buy that house now if you see one that you like.
Brendan
Steven Barrett
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The guarantee scheme is just a comfort blanket. It wasn't used in 2008 and with banks fully capitalised now, there is no need for it now. If the OP her partner both have current accounts, I'd just open up a deposit account with each current account and split the money until ready to buy.In light of the guarantee offered by the Irish Government Deposit Guarantee Scheme wouldn't it be better to split it in any case. €200,000 per institution for a couple. AIB, EBS and Bank of Ireland (who will probably have charges by then ) and see what other banks are still lurking at that stage in Ireland
I'm in a similar situation and bought Prize Bonds, had the first win in the very first draw so already up on what the banks would give. You cannot sell Prize Bonds within 3 months of purchasing them, but that's not an issue for the OP, or let's be honest anybody with how slow conveyancing moves in Ireland.
Also as somebody else here pointed out recently, "Money deposited in relation to the purchase, sale or equity release by the depositor in respect of a private residential property" is covered over €100k by the Temporary High Balances clause in the bank guarantee.
In other news S&P and Moody’s have just cancelled their credit ratings on Irish Banks citing some guy in Dublin who said that there isn’t any default risk. I mean there must literally be a money tree outside Leinster house . In fact income tax can be abolished because bailing out the banks again won’t cost anything as they are “fully capitalised”
If you want to know how messy things can really become become for savers in a small county. Two words “Ice save”
Icesave dispute - Wikipedia
It’s completely irresponsible to say that you can ignore credit risk to a bank as a saver.
Steven Barrett
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Landsbanki wasn't protected by the ECB. All Irish banks were and the ECB clearly stated at the time that no bank would fail. It is not the same.
NoRegretsCoyote
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@Marc @Steven Barrett
The framework at EU and national level for bank resolution and deposit protection has changed hugely since those events (and in fact some banks in Cyprus were allowed to fail and burn depositors).
There is now €52bn in a fund at EU level to protect depositors in the event of a very bad bank resolution. Banks are also much better capitalised than ten years ago. Post-Covid, many banks are swimming in deposits too. Personally I see the chance of retail deposits >€100k being wiped out as microscopic, but I would still avail of free insurance by spreading deposits across institutions.
@sonya2 - deposits over €100k (or €200k for a joint account) are guaranteed for six months if they originate from the sale of a property.
The framework at EU and national level for bank resolution and deposit protection has changed hugely since those events (and in fact some banks in Cyprus were allowed to fail and burn depositors).
There is now €52bn in a fund at EU level to protect depositors in the event of a very bad bank resolution. Banks are also much better capitalised than ten years ago. Post-Covid, many banks are swimming in deposits too. Personally I see the chance of retail deposits >€100k being wiped out as microscopic, but I would still avail of free insurance by spreading deposits across institutions.
@sonya2 - deposits over €100k (or €200k for a joint account) are guaranteed for six months if they originate from the sale of a property.