how safe is €20k lump sum in irish banks

D

dmc1

Guest
can anyone tell me how safe my €20k ksavings really are in an irish bank. one financial wiz tells me to put my money in rabbo direct as it is guranteed by the dutch central bank. the wiz also mentioned checking out a banks credit rating. how do i do this? also I know that the irish goverment are supposed to gurantee up to this amount. but what if banks start to fold here. Dont want to sound like the chicken with the sky falling on my head.
 
This query crops up from time to time except usually the other way around - e.g. are Rabo/NR/Halifax as safe as Irish banks. To worry about any of these institutions collapsing is basically to worry about a very unlikely eventuality in my opinion. Not impossible but very unlikely to happen. For what it's worth there is some info about the IFSRA compensation schemes [broken link removed] which is relevant to institutions regulated by them and who participate in the scheme.
 
Following are the terms of the Deposit Protection Scheme for financial institutions

"Limits on Compensation
The maximum amount payable to any depositor is 90 per cent. of the aggregate deposits held by that depositor subject to a maximum compensation payment of €20,000. Thus, a depositor with a deposit account totalling €5,000 would receive compensation of €4,500 while a depositor with deposits of €22,222 or more would receive the maximum compensation of €20,000."
 
History would suggest that the principle risks to money deposited in an Irish bank are inflation, fraud and skimming. History would also suggest that the risk of an Irish Bank going insolvent and being allowed to close are negligible.
 
Re. the fraud and skimming claims, this would refer to unauthorised activity on your account by an unrelated third party, yes?

If so, the customer would not normally suffer any loss as a result as the bank would have to make good any losses, unless the customer was negligent with their account details.

I wouldn't have thought that Irish banks were any better or worse than non-Irish banks in that case?

Or are you referring to fraud in another context?
 
dmc1 said:
can anyone tell me how safe my €20k ksavings really are in an irish bank. one financial wiz tells me to put my money in rabbo direct as it is guranteed by the dutch central bank. the wiz also mentioned checking out a banks credit rating.
Click to expand...

The Rabobank Group is a full-range financial services provider founded on cooperative principles and is a global leader in sustainability-oriented banking. The Group is comprised of 218 independent local Dutch Rabobanks, a central organisation (Rabobank Nederland), and a large number of specialised international offices.


The Rabobank Group has the highest credit rating (AAA), awarded by the well-known international rating agencies Moody's and Standard & Poor's. In terms of Tier 1 Capital, the organisation is among the world's fifteen largest financial institutions.


Regarding our online security we offer our customers an explicit "No-Fraud Guarantee". Please the link attached for detailed information about our online security.[broken link removed]

RaboDirect
 
Credit institutions lisenced in this state are required under law since 1995 to participate in a Deposit Guarantee scheme which provides cover for 90% of a deposit up to a maximum of €20,000. Such schemes are required in the unlikely event of the collapse of a bank or banks etc. Equivalent levels of protection are provided across the EU. However there is no legal obligation or equivalent scheme established for credit unions in Ireland which is quite unique in a modern economy.

Riddler
 
Last edited by a moderator:
CCOVICH said:
Re. the fraud and skimming claims, this would refer to unauthorised activity on your account by an unrelated third party, yes?

If so, the customer would not normally suffer any loss as a result as the bank would have to make good any losses, unless the customer was negligent with their account details.

I wouldn't have thought that Irish banks were any better or worse than non-Irish banks in that case?

Or are you referring to fraud in another context?
Click to expand...

Thank you for asking

fraud: the shenanigans that a number of Irish banks engaged in during the 80s and 90s, overcharging etc.

skimming: the practice sometimes engaged in during the 80s and 90s by a number of Irish banks (and one in particular) of applying arbitrary charges to client accounts, with no logical, rational or documented method of calculating such charges, and for no reason other than to boost branch income
 
You must log in or register to reply here.
Back
Top