tomreillly
Registered User
- Messages
- 27
Northern Rock have sold their Irish deposits to PTSB
http://www.rte.ie/news/2011/0830/ilp-business.html
[broken link removed]
http://www.rte.ie/news/2011/0830/ilp-business.html
[broken link removed]
Kind of rubbishes the argument put forward by many people when discussing on whether we should have let all our banks fail that there are loads of foreign institutions lining up to enter the market to replace them. I am hearing that there is another large player looking to exit as well.
No, it doesn't rubbish the argument. The reason foreign banks are leaving is because they cannot compete with businesses that are artificially kept alive by state funding and support. It is not a level playing field for them. There are banks in Ireland that are pretty much bankrupt but are paying 4% interest annually, while their mortgage books are losing millions. The only reason they can do this is because of state support. It is the government interventions that are causing foreign banks to leave.
A couple of points:
1 - PTSB savings rates are MUCH lower for demand deposit accounts than NR- will PTSB still offer the same rate as NR? Doubt it
2- The deposit protection scheme is all well and good -you'll get your money back in the event of a default....but it wont be immediately...you could be waiting 6mths or more
I am also considering moving my savings from Northern Rock as the main reason why I opened the account was because of the AAA rating and UK government guarantee. As I have a mortgage with the AIB, I was thinking of moving all of the money into the AIB based on the idea that if my savings were at risk in the future, at least my debt could be written off against my savings. I don't really know if this even makes sense, but surely it makes more sense to hold savings in the same bank as ones debt?
The other question I have is this. The AIB are offering 3.45% on a fixed sum for one year. When the forms arrived, they were from Anglo Irish. If my money was in this account, is it the same as having it in the AIB and would my first point above still stand?
Has nothing to do with that. Banks all over Europe are getting State support. Banks have no interest in foreign markets. End of story. I work for one and recently tried to get an allocation of capital to the operation here to expand a business line for domestic lending into Irish and UK companies because margins were becoming very attractive. I was laughed at by the CFO. I don't think our financial institution will last past 2012 in Ireland and it has nothing to do with not being able to compete with the Irish banks. It has everything to do with the allocation of capital and risk returns.
There are no French, German, UK banks looking to come into a Country with 14% unemployment, a dysfunctional property market and in the midst of a fiscal crisis.
Not true. they both offer 2.50%. They are both low.
PTSB have much higher term deposit rates.