I'm getting nervous about my deposits !!

T

TomPetty

Registered User
Messages
52
Hi Folks, Quick question, I would appreciate your views on this.
I have saved all my life for my childrens education etc .. I'm 40 years old and have 600K in saving deposits with many Irish Banking Instututions, including Irish Nationwide / EBS / PTSB and also 200K with Investec.
Listening to David Mc Williams etc and rumours of our Country going insolvent, am I foolish to have all my eggs in one basket ( ie Irish Banking instutions, except for Investec ).
If so - what are your recommendations ? I cannot lodge it, out of the country, so without putting it under the matress or in Biscuit tins, how can I ensure its safe, while sill earning some decent interest ?

Many thanks for you time.
 
If you're that worried, spread your cash around savings accounts in foreign-owned institutions who take deposits in Ireland - NIB, Rabobank, Leeds Building Society, Nationwide UK, Ulster Bank etc.....

But don't let McWilliams frighten you either.........
 
TomPetty said:
Listening to David Mc Williams etc and rumours of our Country going insolvent, am I foolish to have all my eggs in one basket ( ie Irish Banking instutions, except for Investec ).
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I saw David Mc Williams recent comment that we are heading towards a terminal bank run. The guy has displayed foresight in the past but such an eventuality with ECB/IMF/Irish governement guarantees, is hard to see.

There is nothing stopping moving your money offshore.

The perception is that the non-Irish banks are safer. If you are concerned, perhaps, reduce your INBS exposure and consider on-Irish banks such as Nationwide UK.
 
TomPetty said:
I'm 40 years old and have 600K in saving deposits with many Irish Banking Instututions, including Irish Nationwide / EBS / PTSB and also 200K with Investec.
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€800,000 in savings, that is some feat for a 40 year old, well done!
 
Southern Ireland is a very volatile badly managed debt ridden place.Be very weary of having such a large amount invested in such a country.Do your research on this.
 
brendanyumo said:
Southern Ireland is a very volatile badly managed debt ridden place.Be very weary of having such a large amount invested in such a country.Do your research on this.
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Are we any worse than Britain, Greece or Spain?? As long as the OP spreads his savings around numerous banks he will be covered by the government guarantee, although I would have reservations of keeping such a large amount of cash in banks, it would be very much advisable if the OP sought professional financial advise.
 
Marietta said:
Are we any worse than Britain, Greece or Spain?? As long as the OP spreads his savings around numerous banks he will be covered by the government guarantee, although I would have reservations of keeping such a large amount of cash in banks, it would be very much advisable if the OP sought professional financial advise.
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Ireland is very much worse than Great Britain or Spain.Greece is bankrupt in all but name as is Ireland.The mismanagement and lies of the Irish government beggars belief.The disasterous Bank bailouts and NAMA have bankrupted Ireland.That is a fact!
 
brendanyumo said:
Ireland is very much worse than Great Britain or Spain.Greece is bankrupt in all but name as is Ireland.The mismanagement and lies of the Irish government beggars belief.The disasterous Bank bailouts and NAMA have bankrupted Ireland.That is a fact!
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I really would like to know as to how the many Professors on this forum would have dealt with the misgivings that they were presented with ??
 
brendanyumo said:
Ireland is very much worse than Great Britain or Spain.Greece is bankrupt in all but name as is Ireland.The mismanagement and lies of the Irish government beggars belief.The disasterous Bank bailouts and NAMA have bankrupted Ireland.That is a fact!
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How is it a fact? What was the alternative? Im not sticking up for anyone here but you cant just come out with a statement like that. If they didnt do NAMA, what was the other solution, nationalise all the banks and saddle with state with more hassle? Completly ruin our international image with all domestic banks under state ownership or allowing them to go to the wall and defaulting on international investors who then would not touch Ireland with a ten foot barge poll?

By all means enlighten us with a better altenrative to NAMA, Bank bailouts etc... otherwise stop talking the country and people down, its almost like some people are happier when they have something to moan and milk it for all its worth!
 
+1. Sure no body likes what has gone on. But travel around Europe amd their Economies are in Rag order but they are making every effort to unfold the situation. However in this country all we have is Political Opposition without a Policy or a clue.

As for the OPs original question the money is safe until Xmas. Then you will have toi make decisions using your head and not be confused by a Forum or in fact withoiut Financial Salespeople.
 
Thanks all for your advice - When you mention putting some of my savings offshore, do I :
Need an address in other country ?
Still pay DIRT to Irish Revenue ?

Many thanks.
 
AFAIK, no you do not need a foreign address but you will have to go through strict account opening procedures. You will not be able to avail of the DIRT regime, but will be taxed at the marginal rate for the interest earned.

Best to check with an accountant.
 
Bobby1 said:
How is it a fact? What was the alternative? Im not sticking up for anyone here but you cant just come out with a statement like that. If they didnt do NAMA, what was the other solution, nationalise all the banks and saddle with state with more hassle? Completly ruin our international image with all domestic banks under state ownership or allowing them to go to the wall and defaulting on international investors who then would not touch Ireland with a ten foot barge poll?

By all means enlighten us with a better altenrative to NAMA, Bank bailouts etc... otherwise stop talking the country and people down, its almost like some people are happier when they have something to moan and milk it for all its worth!
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It is a fact because within a couple of months predictions for NAMA have gone from €4-5 billion profit to €800 million loss. And these predictions are from people who have a proven track record of getting things completely wrong. Bankruptcy/debt restructuring is only a matter of time now.

The right thing to have done would have been to let bad businesses (banks) go bankrupt; no NAMA, no nationalisation. It is complete and utter nonsense to say that Ireland would be shunned by investors. Argentina and Russia defaulted and soon after investors returned. At the time that these countries defaulted the talk was that this would be the end for them and they would never recover, which was simply a wrong prediction. Germany effectively defaulted after WWI and WWII, but this didn't stop investors returning.

Bankrupt businesses cease to exist in their present form, but after restructuring, take-over of assets or viable parts of the business, they re-emerge in some way or another. Ideally you have a situation where new banks are created to take the place. These new banks would not have been shunned, quite the opposite. Investors would see a market where businesses have to be prudent in their practices or else fail. This would make them more attractive to investors, not less. You are merely regurgitating the same rubish that is being thrown out by the PR machine of government.

Would the short term effects have been dire? Absolutely, but it would be the price to pay for long-term stability, not short-sighted quick fixes of the simptoms of the problem. Bailouts and NAMA and nationalisation have only kicked the can down the road.
 
I thought in the revised projections for NAMA, they advised a profit of €1billion is more likely, with a loss of €800m in a worst case scenario?
 
Couple of issues spring to mind:

1. Can the Government actually afford to pay the bank guarantee if it is insolvent? i.e. is it a bluff?

2. If we become insolvent and have to leave the euro, will our deposits be converted to worthless punts? Even if we are in a foreign bank like rabodirect.ie?
 
How about Index Linked European Government Bonds, heard Eddie Hobbs speaking about these last week - hope I have the correct name for them
 
TomPetty said:
Hi UFC - They are two very good questions - That is what worries me !!
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They worry me too, which is why I have very few cash funds in Ireland. Considering the amount of cash you have, you could consider short term German bonds, as a safe haven.

You should also look into diversifying out of the euro a bit, maybe Swiss or Australian bonds/cash. In order to buy bonds you would need to go to a broker, with the ultimate protection being a broker outside Ireland, just in case the government decided to confiscate assets (which I believe is very unlikely, but you never know how desparate they get).

Considering the amount of money you have (fair play to you, this country needs more people like you!) I would be surprised if you didn't find banks outside Ireland that would be willing to set up an offshore account for you. Swiss banks would be one port of call, and they should be able to set up a euro account as well. I'd say ring a couple of banks and see what they say.

Please do not take any of the above as specific recommendations, they are just ideas for you to look into.
 
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