Key Post Brendan Burgess explains: The Deposit Protection Schemes

Discussion in 'Deposits' started by Brendan Burgess, Nov 29, 2010.

  1. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    33,057
    I have summarised the deposit options according to my assessment of their rough order of safety…

    As there is a lot of work in keeping this updated, check out www.itsyourmoney.ie which is kept up to date

    This is a complicated subject and corrections and clarifications are welcome
    .

    In particular, I have described some of the banks such as Leeds and KBC as solvent in their own right. Has anyone got any further information on these, which I could incorporate into the table? Or would anyone like to post a reply discussing the safety of the various banks on a case by case basis?

    The inherent safety of the bank is probably the most important decision in choosing a bank and the guarantee should be a back-up. Thus Rabobank which has a AAA rating is as safe as you can get whereas Anglo Irish Bank is depending entirely on the Irish government being able to meet its guarantee.



    Rabobank| Safe in its own right as it has a AAA rating|+ covered by the Dutch Scheme -100% of €100k
    _ Northern Rock| Irish Deposit Scheme €100k| + UK Scheme £100k+has recently been split into a good bank +owned by UK Govt
    NIB|Irish Deposit Scheme €100k|+Danish Guarantee €50,000 + owned by Danske a good bank
    _

    Investec| UK Scheme 100% of £100,000|+ solvent in its own right
    Leeds Building Society| UK Scheme 100% of £100,000|+ solvent in its own right
    Nationwide UK| UK Scheme 100% of £100,000+ solvent in its own right
    _ Ulster Bank/First Active|Irish Deposit Scheme €100k|+84% owned by UK Govt
    KBC| Irish Deposit Scheme €100k|+ good bank in its own right
    Pfizer| Irish Deposit Scheme €100k|+ good bank in its own right
    Postbank| Irish Deposit Scheme €100k|+ good bank in its own right
    These are covered by the Irish Deposit Scheme but not by the unlimited Irish Government guarantee scheme



    The Irish government guarantees 100% of the liabilities of the Irish covered banks:
    Bank of Ireland/ICS |will probably be adequately capitalized shortly
    Permanent tsb|will probably be adequately capitalized shortly
    EBS |will probably be adequately capitalized shortly
    AIB|will probably be adequately capitalized shortly
    The following are relying solely on the Irish government guarantee and would be unable to repay their depositors without it:
    Anglo Irish Bank
    Irish Nationwide