savings with INBS

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cavanMan

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Hi there!!

we currently have €100.000 with INBS on a one year fixed account until mid january!! with all the talk about INBS closing etc wud it be wise to withdraw the money now and get what ever interest or stick it out till January!!

all advice most welcome :)
 
What you need to ask yourself:
Where will the government get the 4 billion to pay back INBS deposit holders?
Does this 4 billion actually exist?
Will the German's tap the financial markets when we ask for help in January? (The IMF/EC bail out package is just a piece of paper).
People are pulling money out of AIB and other state banks. Do you want to be at the end of the queue if the worst happens?

The risk is too high to hold money in any Irish state bank.
 
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Hi Wig
You say :'People are pulling money out of AIB and other state banks left right and centre.'
Have you actual proof that this is happening? If so ,what proof have you got?
Do you work in AIB or some other state bank?
 
agencydude said:
Hi Wig
You say :'People are pulling money out of AIB and other state banks left right and centre.'
Have you actual proof that this is happening? If so ,what proof have you got?
Do you work in AIB or some other state bank?
Click to expand...

Agree with you agencydude, wig have you actual proof this is happening, as without proof, you should not be making these statements as they are very damaging, and will only fuel the fire sort of speaking to worrying people to withdrawing funds from banks etc...
 
Some indirect evidence here. I wonder what his source was?

guardian.co.uk/money/2010/sep/30/anglo-irish-bailout-savers-protection

"The Irish government has long claimed that customers with savings in all of Ireland's major banks are safe. It extended a 100% deposit guarantee to all Irish-owned financial institutions in 2008 until 29 September 2010, and this has recently been extended to the end of the year. But panicked savers have continued to withdraw their cash – in the first half of this year customer deposits fell by more than €5bn to €23.1bn."

That's nearly 20% gone in six months.
 
There is plenty of evidence of the Irish state banks losing deposits. As per my posting in the other thread, Anglo for example, have lost 50% of their deposits in 2 years. INBS have lost 40% of their deposits. This is public information that is available for all to read in their accounts.

The AIB 2010 Accounts for Jan to June 2010 point to 5 billion in corporate deposit exits, but growing consumer deposits, but overall negative deposit growth. The Sunday Tribune article last Sunday, stated AIB was losing significant corporate deposits. There are also dozens of postings on AAM that point towards 'state bank withdrawals'. The state bank inflated deposit rates, especially in Anglo/INBS/AIB offshore etc also speak volumes about what they are having to do to attract deposits.

All evidence. I don't see any point in pretending that it is not happening any more.

Having said this, the Irish state is propping up the banks with huge support and it would still, to me, seem unlikely that any saver in an Irish state bank will loose money, but the risk is not zero.
 
I was reading that the Credit Union had been more sensible with their lending, would it be safer to put our money in the CU?
 
CU arrears are soaring, many CU's are having serious solvency issues and there are viability issues.

Your money is not safer in a CU. Your money is safer in NUK/NR/Rabo/Non Irish state banks.
 
FAO Cavanman, leave your money in INBS, it is State Guaranteed, If you break it then you will lose interest, certainly enquire what the penalty is but leave it, if there is a wind down and If we still have a sovereign Government then you will get your principal back and at worst you may lose your interest, I'm speaking as a fixed account holder with both Anglo and INBS, just don't exceed the guarantee.

Burying your cash in a box in the garden also exposes you to risk, in fact doing anything with it exposes you to risk, In my opinion this is overdone but each man to his own...
 
CiaranT said:
CU arrears are soaring, many CU's are having serious solvency issues and there are viability issues.

Your money is not safer in a CU. Your money is safer in NUK/NR/Rabo/Non Irish state banks.
Click to expand...

Is this a bit of a generalisation? What % of CUs have serious solvency issues?
 
As per a recent Irish Times article, "many credit unions are facing serious solvency issues". There are too many sets of accounts to put a percentage on it.
 
CiaranT said:
As per a recent Irish Times article, "many credit unions are facing serious solvency issues". There are too many sets of accounts to put a percentage on it.
Click to expand...

I don't think your conclusion of "Your money is not safer in a CU. Your money is safer in NUK/NR/Rabo/Non Irish state banks" stands up unless you can speak to the % of CUs in difficulty.
 
CiaranT said:
There is plenty of evidence of the Irish state banks losing deposits. As per my posting in the other thread, Anglo for example, have lost 50% of their deposits in 2 years. INBS have lost 40% of their deposits. This is public information that is available for all to read in their accounts.
Click to expand...

Does this count as 'deposit flight'! BL doesn't think so.

independent.ie/business/irish/we-will-paddle-our-own-canoe-lenihan-2366472.html

Questioners also wanted to know about how strong bank funding was at present. "Retail deposit flight, I don't see that as a great danger," he said. "I haven't seen any evidence of retail deposit flight," he added, saying that customers here had long-term relationships with their banks built up over decades.
 
Huh? INBS sell term deposits for fixed periods, not bonds with a fixed maturity date.

Given the uncertainty of the future of INBS, the 2 year term would not be the considered, by many, the safest of investments.
 
Ciaran T they are both Fixed Rate Interest Bonds both mature in April 2011. One was invested for one year from 2010 to 2011 the other after been in two years from 2009 to 2011. They have been rolling over for the last ten years. So it is best to pull them out in April.
 
Ciaran T could you or anybody give me your thoughts on my last post.What is the best thing to do. Pull them out in April??
 
megabyte - I don't think anybody can advise you here, it is really up to the level of risk you are willing to take. Things are changeing on an almost daily basis and it is very difficult to predict what might or might not happen.

I had an instant access account with INBS and closed it last week and moved to Nationwide UK Ireland, my new account was opened in a matter of days. You need to find out how much it will cost you if you decide to close your term account 5 or 6 months before its maturity date. However, if you want peace of mind and you are very worried about the risk of losing your savings then it will be worth your while to move it, €100,000 is an awful lot of savings to have within one financial institution and maybe you should diversify.
 
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