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

Is there a chance we could have a freeze on withdrawals from bank accounts as part of any IMF deal ? Im very worried about my savings. Extremely worried.
 
I had accounts with NW UK and NR. As soon as the situation is a bit clearer I'm moving part of my savings back back here from Italy.....
 
bullworth said:
Is there a chance we could have a freeze on withdrawals from bank accounts as part of any IMF deal ? Im very worried about my savings. Extremely worried.
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Slim chance. 99% likely your money is safe, for the medium term, if there is an IMF deal.

Where are your deposits at the moment?
 
Sandra1 - You are invested with two of the worst banks within the irish economy, anybody reading AAM within the last 6 months should have moved all their deposits from these two banks by now.

Just because they pay a higher interest rate is no excuse to have remained with them, security of deposit is safer than any interest rate as far as I am concerned.
 
I know, I did not read AAM before I did that. I also have NUK account and I wanted to transfer Anglo+INBS there. I thought I could wait until June?
 
Nationwide UK have increased their guarantee to £100,000 if I were in your shoes I would transfer all my savings from these dodgy institutions on Monday morning. Over on politics.ie they are saying that the banks wont open on Monday morning if some sort of agreement isn't formulated with the IMF over the weekend.
 
Thank you Marietta. Would you know am I going to loose anything if I withdrow the money before the end of 1 year term? I know I'll not get interest but am I going to get the whole deposit if I withdrow earlier?
Is the second bank you recommend Northen Rock?
 
There will be some penalties if you withdraw earlier, for the life of me I really dont know why you choose to invest with them this last couple of years, sure the writing was on the wall.

Some people say the deposit guarantee is a huge safety net and the ECB would never let ordinary depositers lose their savings but we are living in very uncertain times and the behaviour and lies of our government over the last week was enough for any intelligent person to begin immediately removing all their savings from Irish banks.

Rabobank is also a safe option but their interest is a pittance compared to NationwideUK Ireland, there are some more, if you so a search here you will find them. Many people are also advocating moving savings outside of the state, the keyway account in Belgium features widely here.
 
Yes, I read now, but I did not before. I was stupid. I thought I could wait until June and then transfer the money elsewhere.
I found this on INBS T&C - would you know how is B calculated in the formula below:

Withdrawals or closures prior to the account maturity date may result in a
penalty equal to the cost to the Society of replacing the amount withdrawn. This
penalty will be calculated using the following formula: A x B % x C
A - is the amount withdrawn.
B % - is the difference between the prevailing market rate of interest for the term
remaining and the rate on the account.​
C - is the number of days remaining in the term.

 
Why no Ulster Bank?? I think Irish Gauruntee was extended to them and NIB but aren't they then effectively double guarunteed?
 
If I were to go to the north or over to England would I be able to open a sterling bank account or do I have to have an address in the UK before they'd allow me to do that?
 

Nationwide UK guarantee 100,000 EUR, not 100,000 GBP. See here: [broken link removed]

Agreed, if there is no IMF agreement, then there will be very serious issues for Irish banks. However, there almost certainly will be an IMF agreement.


Would B simply equal the current interest rate for the same term?

chewchew said:
If I were to go to the north or over to England would I be able to open a sterling bank account or do I have to have an address in the UK before they'd allow me to do that?
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Most NI banks allow you to open a GBP account with a ROI address.
 
Sorry I'm getting confused here but even if the IMF agreement isn't reached sandra1 can go straight to Brian Cowen to ask for her capital (then for the interest she could get back to the bank, save the capital first!).

Sandra1, on Monday go straight to the 2 banks and get your money back, that's my humble suggestion!
 
CiaranT said:
Would B simply equal the current interest rate for the same term?
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How would you calculate penalty then? I invested 50K, number of days remaining ~200, interest=3.5%.

Does it mean I pay 50K * 200 * 3.5%? It is not possible?
 
CiaranT said:
Most NI banks allow you to open a GBP account with a ROI address.
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Thanks, any idea of the costs associated with doing this? If I were to move 100,000 euros to a GBP account would I get murdered by currency conversion charges?
 
How likely to lose something? How likely to have your account frozen? History tells a story. I don't have the exact information to hand right now. In an IMF document reviewing ~42 bank crises, in 30% of the cases depositors lost some money. I think in about 12% of the cases, deposits were frozen from a short period of time up to 10 years. Bank holidays were also very regularly used.

That said, I think given the euro situation, that we are very unlikely to loose deposits, as we have a massive organisation looking to protect the image of the currency.
 
sandra1 said:
How would you calculate penalty then? I invested 50K, number of days remaining ~200, interest=3.5%.

Does it mean I pay 50K * 200 * 3.5%? It is not possible?
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The days need to be divided by 365.

Hence, I would guess that INBS would charge you:
50,000 EUR * (200/365) * 0.035

I suggest you confirm the charge with INBS but it looks like a big charge.

As I said, I think an IMF bailout will happen, and as a consequence your money will, almost certainly, be safe.


chewchew said:
Thanks, any idea of the costs associated with doing this? If I were to move 100,000 euros to a GBP account would I get murdered by currency conversion charges?
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I would imagine that the cost will be the currency conversion fee only. Check the currency fees with the bank, they vary significantly.


SPC100 said:
How likely to lose something? How likely to have your account frozen? History tells a story. I don't have the exact information to hand right now. In an IMF document reviewing ~42 bank crises, in 30% of the cases depositors lost some money..
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Interesting stat. Do you have a link to the study?

The risk is not zero that the IMF will impose losses on deposit holders, it just seems highly improbable, should a bailout occur.
 
Hi Sandra,

I agree with Ciarian 100% & really really hope he is right. If I were you i would sit tight for the moment & keep a close eye on the news & this site for more updates.

Dont forget everyone has opinion, read them all but always take a moment to sit back & make up your own mind on the FACTS!! I no its a scary time but I feel some people can get carried away slightly.
 
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