Worried about the Irish Bank Guarantee? Want to maximise your demand deposit interest

If you dont fully trust the Irish Bank Guarantee, and if you don't want to open a bank in a foreign country, but you do want the best possible demand deposit return with a foreign guarantee, here is my suggestion;

limits are based on account type and/or foreign guarantee limit

Nationwide UK Ireland (UK 50kGBP guarantee) 3.15% deposit for first 60k - 6 withdrawls during apr to mar
NIB esaver ([broken link removed] ) 3% for next 50k - note reduced to 1% for a month if you make a withdrawal.
Northern rock (UK 50kGBP guarantee) 2.5% for next 60k euro
Rabo (dutch scheme protection - not sure on amount) 2% for remaining (as I think rabo is the safest..)

Obviously this solution would not be optimum if Ireland was to leave the Euro.

SPC100 - That is very good maybe it should be put in with the best buys.

how safe is money in Ulster Bank?

re: NIB esaver (danish and irish guarantees ) 3% "for next 100k"

eSaver allows 50K max.

edited my post. thank you.

Have deposit holders ever been burned in instances of IMF intervention?

I'm still unclear as to whether it's necessary to go with whats suggested above or leave funds in IRL banks? :-/

An IMF agreement is not a 100% certainty at this stage. Given that the ECB are no longer providing unlimited liquidity to AIB and other Irish banks, it is still an uncertain time until the IMF agreement is in place.

If you don't want to move your deposits abroad, would you consider some of the non Irish banks here like Nationwide UK?

Yes, I am worried about the guarantee. The very fact that the powers that be are on the media defending it makes me worried about why they need to defend it and that there's no smoke without fire. I'm well below the €100,000 limit & up till now I've felt safe but now I'm beginning to get the jitters so I went in to the bank today & I've asked for a substantial amount of my savings to be taken out of a 30 day notice account.

I'm thinking of moving it into the Post Office. Would it be safer there? A bank official has given me a booklet about 'The Irish Deposit Guarantee Scheme' which I'm told is different from the Government guarantee covering €100,000. Thing is given the crap that's gone on & is going on I don't trust anybody anymore, just my gut instinct.

Has anyone any advice on what moves I should take to protect my money.

Sierra said:

I'm thinking of moving it into the Post Office. Would it be safer there?

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No. An Post deposits are used by the NTMA to fund the Irish national debt. There are serious questions about the medium term prospects with regard to the states ability, even with IMF support/further loans, to pay this debt.

Sierra said:

Has anyone any advice on what moves I should take to protect my money.

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Have you considered Nationwide UK @ 3.15% ?

Am I right Ciaran about being nervous leaving my money in the bank, which is safer the bank or PO. Are there any banks that are safe? Where is this Nationwide UK based, have they offices in Dublin. What kind of guarantee do they offer & who backs them.

Are you telling me to avoid puting my savings in the PO.

Sierra,

Nationwide UK are basedin Spencer Dock beside the IFSC and are opening a branch on Merrion Row. They are backed the the UK Guarantee. Have a look at the best buy section where you will see all the rates and who is the guarantor nicely collated.

CiaranT said:

Have you considered Nationwide UK @ 3.15% ?

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Can I jump on this also. I have one 1 yr. fixed about to mature with Anglo.
I renewed another 1 year fixed 2 months ago (story didn't look as bad then).

I guess I can fore go the 2 months on the existing and fire them both into nationwide...?

So is Nationwide UK the safest & only bet. Is the UK guarantee safer than the Irish guarantee or am I being over paranoid and panicking unneccesarily.

Sierra - Nationwide UK Ireland are safer than the Irish Banks at present, god knows what's going on with the Irish banks but I really wouldnt leave one cent in any of them, the trust is completely gone.


Nationwide UK Ireland is one of the 50 safest banks in the world, never required any capitalisations of any kind and depositis in Ireland are British guaranteed.

Sierra said:

Am I right Ciaran about being nervous leaving my money in the bank, which is safer the bank or PO.

Are you telling me to avoid puting my savings in the PO.

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There are safer options that putting your money in An Post products that are used by the NTMA to fund the Irish national debt.

serotoninsid said:

Can I jump on this also. I have one 1 yr. fixed about to mature with Anglo.
I renewed another 1 year fixed 2 months ago (story didn't look as bad then).

I guess I can fore go the 2 months on the existing and fire them both into nationwide...?

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Yes, you can fore go the 2 months interest and put the funds in a Nationwide UK 1 year term deposit that pays 3.4%.

Sierra said:

So is Nationwide UK the safest & only bet. Is the UK guarantee safer than the Irish guarantee or am I being over paranoid and panicking unneccesarily.

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The UK can print their own money, and have a much lower default probability in their CDS spreads. The market clearly believes that they are safer.

CiaranT said:

Yes, you can for go the 2 months interest and put the funds in a Nationwide UK 1 year term deposit that pays 3.4%.

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Ok, thanks. IF the worst was to happen, are we talking about a couple of weeks, ....whats the guestimate re. timing - on the worst case scenario re. deposit guarantee.

Worst case scenario, however improbable, is that the EC/IMF agreement is not signed by FF and the banks are declared insolvent or the EC/IMF agreement is not signed in a timely manner, and the banks run out of 'assets' to repo to the ECB and ICB in the mean time, rendering themselves insolvent.

Highly improbable, most likely the EC/IMF agreement will be signed. The risk is in the pre-signature time frame.

its looking like a bailout is a foregone conclusion , having been stung on a currency transfer with hsbc and having realised ( in the past few days ) the extent to which british and other european banks are dependant on the survival of irish banks , i now regret having moved my 50 k savings out of the state , it wasnt nesccessery , as i said earlier , were people to loose thier savings , ireland would turn into iraq over night , law and order would break down , the state could not function and the domino effect would effect the whole of europe , even we had our money moved outside the state , would a country completley broke be worth living in ??? , not much good having money abroad if it results in your home country eventually collapising , as someone on another forum said about the phenomenon of nervous deposit holders , once word spreads that people are taking out thier money , the whole thing becomes a self fulfilling prophecy and before you know it , the banks are on the brink

the reality is that we ( however small ) are an important cog in the wheel of the eurozone project and despite the fact that europe via the IMF is going to impose a sever austerity programme on us , they cannot afford to allow our banking system to collapse and clearly believe that were they to do so , the dominos would fall throughout the rest of the eurozone

thier is no chance of savings being lost , NOW !