How safe are deposits in Anglo-Irish?

N

Ninjini

Guest
Hi there,

I have some money (approx €6k) in an Anglo-Irish deposit account and I'm wondering how safe it is? The Government have said they will extend their guarantee scheme for another 6 months. Do you think I should take it out and put it elsewhere? Or leave it there?

Thanks,

Ninjini!
 
How long is a piece of string?

How safe it is depends on your perception of the viability of the Government's guarantee. Obviously, a lot of investors believe that it isn't worth the paper it's written one, hence they are selling all Irish Government Bonds, at no matter the price.

If the Government can't restart borrowing in the New Year at reasonable interest rates (whatever they are) then it's a certainty that they will have to avail of the Euro Stability fund. How that will treat depositors in the banks is an unknown although there is no indication that they would not be paid in full.

The best we can hope for is that the 4 year plan, the Dec Budget and our reaction to these as a nation, will demonstrate to investors that we are willing to live within our means even though this will imply hardship - hopefully shared around - and then they will be willing to fund our reduced lifestyle.
 
Option 1) Keep the cash in Anglo and earn 3.1% (if you have a Premium Demand account) and take a risk, however likely, that the government/ECB will continue to be able to repay exiting deposit holders.

Option 2) Move your cash to Nationwide UK and earn 3.15% and have much greater security.

I prefer option 2.
 
Sorry but option 2 is not as different from option 1 as you might think.

If the Irish banks are unable to pay their depositors and the Irish government is unable to continue to support them, it is likely that legislation will be brought in to limit the withdrawls that can be made from accounts.

This would apply to all banks operating in Ireland irrespective of any parent bank or foreign govt backing they may have
 
cremeegg said:
Sorry but option 2 is not as different from option 1 as you might think.

If the Irish banks are unable to pay their depositors and the Irish government is unable to continue to support them, it is likely that legislation will be brought in to limit the withdrawls that can be made from accounts.

This would apply to all banks operating in Ireland irrespective of any parent bank or foreign govt backing they may have
Click to expand...

Did this happen in Greece and Portigal when they went to EU to borrow money from.............
 
cremeegg said:
... it is likely that legislation will be brought in to limit the withdrawls that can be made from accounts.

This would apply to all banks operating in Ireland irrespective of any parent bank or foreign govt backing they may have
Click to expand...

Would the person be able to travel to the UK to withdraw?
 
If A Withdrawal Limit were to be Imposed

Any guesses as to what the amount might be and over what time span, ie daily/weekly/monthly .......
 
There's alot of questions been asked about "what happens when IMF come in", "whats happens when if we cannot borrow next year" etc etc.. Can I assume that if these happen, any Irish bank inc Anglo and AIB which are nationalized (or nearly) and An Post savings would be wiped out completely ? This does'nt seem possible, does it ?
 
I don't know what to do either. I have 95k in Anglo and am starting to get a bit worried about it. I already have my Nationwide UK account maxed out so can't move it there and there seems to be a big drop in interest to move to any other non-Irish bank, from 3.2% with Anglo to 2% with Rabo. Any other ideas?
 
Aloysius said:
I don't know what to do either. I have 95k in Anglo and am starting to get a bit worried about it. I already have my Nationwide UK account maxed out so can't move it there and there seems to be a big drop in interest to move to any other non-Irish bank, from 3.2% with Anglo to 2% with Rabo. Any other ideas?
Click to expand...

What do you mean by maxed? Do you have 100,000 EUR in the account? The UK guarantee increases to 100,000 EUR from January 1st 2011.

NIB will pay you 3% subject to their T&C's.
 
Kev said:
Did this happen in Greece and Portigal when they went to EU to borrow money from.............
Click to expand...

Neither Greece nor Portugal have defaulted on their debt. It did happen in Argentina when that govt defaulted
 
JoeBallantin said:
Would the person be able to travel to the UK to withdraw?
Click to expand...

The operations in Ireland of Rabobank -Rabodirect- and Nationwide Building Society -Nationwide UK (Ireland)- are Irish banks. Their parent companies would have no obligation to reimburse Irish customers
 
1ofreviewer said:
There's alot of questions been asked about "what happens when IMF come in", "whats happens when if we cannot borrow next year" etc etc.. Can I assume that if these happen, any Irish bank inc Anglo and AIB which are nationalized (or nearly) and An Post savings would be wiped out completely ? This does'nt seem possible, does it ?
Click to expand...

Can you provide any reason for saying "this doesnt seem possible". I can provide several why is seems possible and even some why it seems likely
 
cremeegg said:
Can you provide any reason for saying "this doesnt seem possible". I can provide several why is seems possible and even some why it seems likely
Click to expand...

Its a question, so if you can provide several, pls do..
 
cremeegg said:
The operations in Ireland of Rabobank -Rabodirect- and Nationwide Building Society -Nationwide UK (Ireland)- are Irish banks. Their parent companies would have no obligation to reimburse Irish customers
Click to expand...

Are you sure about this, best buys thread seems to say that UK and Danish are backing these deposits.
 
We are talking about two different things here. You are right that in general foreign owned banks in Ireland are covered by their home countries deposit protection schemes.

However in the context of an Irish bank failure, legislation might be introduced limiting access to bank deposits. This would almost certainly apply to all banks operating in Ireland irrespective of their home country.

The parent company would not have any obligation to allow you access to your funds from abroad. My answer to JoeBallantin's question therefore is, no you could just go to the UK and withdraw your money
 
cremeegg said:
The operations in Ireland of Rabobank -Rabodirect- and Nationwide Building Society -Nationwide UK (Ireland)- are Irish banks. Their parent companies would have no obligation to reimburse Irish customers
Click to expand...


That is just total rubbish you are spouting there, all of these and northern rock are parts of their parent banks operating under licence in Ireland, it's their home guarantee that kicks in first and only the Irish dream one where you have reached the parent countries limit. Iceland tried some of the stuff you are suggesting, it didn't go very well for them, politicans now on trial and frozen out of the eu and state funds frozen for not compensating British and Dutch depositers.
 
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