Is my Rabo deposit protected

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paddyc

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I have some money on deposit with Rabo Direct, while I know they have a triple AAA credit rating etc is on the chance the do go bust is my deposit covered upto the 100k by the Irish government or am I dependent on whatever level of protection the Dutch central bank give as they are licenced by them ?
 
I'd like clarification on this as well. I thought the Rabo were only guaranteeing up to €40,000 under Dutch legislation but I hear this morning that they may be covered under this Irish initiative up to €100,000. Did I hear this correctly?
 
Not really. I'm sure I heard it reported on RTE1 radio this morning that Rabo deposits were protected up to €100,000 in addition to the limitless guarantee to Irish banks, but maybe it was mis reported.
 
Compass, I heard that too - the guy talking was RTE's Economic Correspondent George Lee and he was in quite an excited state. He did appear to say that Rabo was covered, but he was in full flow at the time and I just assumed his meaning got mixed up. Nothing I’ve seen here or elsewhere suggests that the Irish Government can provide deposit guarantee’s for bank’s not headquartered in Ireland. Rabo while they have an Irish operation is definitely not Irish (they say so themselves).
 
BOC_1968 said:
Compass, I heard that too - the guy talking was RTE's Economic Correspondent George Lee and he was in quite an excited state. He did appear to say that Rabo was covered
Click to expand...

Mr Doom and Gloom is having a field day.

Here is what Rabo say, from their website: [broken link removed]

Deposit & Investor Protection Scheme? Rabobank is a member of (a) the Dutch Deposit Guarantee System and (b) the Dutch Investor Compensation Scheme, implemented by the Financial Supervision Act 2007 and related decrees. Broadly speaking, the Dutch Deposit Guarantee System deals with money - deposits in current and savings accounts - while the Dutch Investor Compensation Scheme is about securities held on your behalf by Rabobank. The Deposit Guarantee System and the Investor Protection Scheme will only become applicable if Rabobank enters into bankruptcy proceedings. However, Rabobank is a AAA-rated bank and consistently maintains these ratings. This is the highest level of creditworthiness that a bank can have. RaboDirect is the brand name of the internet bank that is part of Rabobank's Dublin branch. Accordingly RaboDirect has full AAA status.
(a) Dutch Deposit Guarantee System
The Dutch Deposit Guarantee System guarantees the interests of account holders, and applies to deposits in current and savings accounts. Under the Deposit Guarantee Scheme, if Rabobank is unable to meet its obligations to repay a customer's balance, the customer is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the customer's next €20,000 also being guaranteed. Accordingly, the customer has a 10% own risk on that part of his balance that is between €20,000 and €40,000. In the case of a joint account, the maximum amounts set out above apply to each joint account holder.
(b) Dutch Investor Compensation Scheme
As a supervised Dutch bank, Rabobank is required to safeguard your securities and other financial instruments. This means that your securities are separated from the assets of the bank. Even if Rabobank goes out of business, you remain fully entitled to your assets. Practically speaking, you have in that case to instruct Rabobank to transfer your assets to another broker or bank. In the unlikely event that your assets are not identifiable anymore and have become part of the bankruptcy estate, the Dutch Investor Compensation Scheme may become applicable. If Rabobank is unable to meet its obligations to repay a customer's balance, the customer is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the customer's next €20,000 also being guaranteed.
(c) Procedure
If Rabobank goes out of business, the Dutch Central Bank ('DCB') will start the compensation process. Certain information is available on the website of the DCB (www.dnb.nl) in relation to the Deposit Guarantee Scheme and the Investor Compensation Scheme. Parts of this site are also accessible in the English language.

(d) Which RaboDirect customers may benefit from the Deposit Guarantee Scheme and the Investor Compensation Scheme?
Subject to very limited exceptions, in the unlikely event that Rabobank enters bankruptcy proceedings, the following types of RaboDirect customers may benefit from the Deposit Guarantee Scheme and the Investor Compensation Scheme:
(i) personal customers;
(ii) sole traders;
(iii) partnerships;
(iv) companies who satisfy at least two of the following conditions:

(A) a balance sheet total that does not exceed €2,500,000 per year;
(B) a net turnover not exceeding €5,000,000 per year; and
(C) a workforce not exceeding 50 people in the financial year.
 
Hi,
Can anyone confirm, if the deposit protection announced applies to all deposit accounts, e.g. a deposit account held in the name of one's company as opposed to ones name (personal deposit account)?

Does this equally apply to personal current accounts and to business current accounts?

We have a large sum held in a deposit account, which is in our company name held in an Irish bank.
thanks.
 
Zeus said:
Hi,
Can anyone confirm, if the deposit protection announced applies to all deposit accounts, e.g. a deposit account held in the name of one's company as opposed to ones name (personal deposit account)?

Does this equally apply to personal current accounts and to business current accounts?

We have a large sum held in a deposit account, which is in our company name held in an Irish bank.
thanks.
Click to expand...

The guarantee covers all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt (lower tier II), with the following banks:
Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator.
 
paddyc said:
I have some money on deposit with Rabo Direct, while I know they have a triple AAA credit rating etc is on the chance the do go bust is my deposit covered upto the 100k by the Irish government or am I dependent on whatever level of protection the Dutch central bank give as they are licenced by them ?
Click to expand...

Thanks for your question.

Deposits at RaboDirect are guaranteed under the Dutch Deposit Protection Scheme. Which means 100% of your first €20,000 is covered and 90% of your remaining €20,000. That’s a total of €38,000.

As you correctly pointed out, RaboDirect is part of the Rabobank group, the only (AAA) triple A credit rated bank in Ireland. No other Irish bank operating in the market has such a high credit rating. We are extremely confident in our ability to hold firm in difficult financial times and believe that our ability to do so is greater than that of any other retail bank operating here.

[broken link removed]

Rabobank has had its AAA credit rating from both Moody’s and Standard and Poor’s since 1981. That’s 27 years! Global Finance magazine currently ranks Rabobank 4th in its survey of ‘world’s safest banks’.

[broken link removed]

As a co operative bank, we are not at the mercy of the stock markets, unlike some of our competitors and so have our customers best interest at heart.
 
From the RTE website:
"The safety of deposits of up to €100,000 in foreign-owned banks with branches in this country, including Ulster Bank, First Active and IIB, has already been guaranteed by the Government here.
National Irish Bank, owned by Denmark's Danske Bank, has applied to the Department of Finance to be included in the scheme. It has received indications that it will be accepted.
Rabobank, which operates online, does not come under the €100,000 guarantee scheme as it does not have bank branches.
It is guaranteed for up to €38,000 under the Dutch scheme.
The safety of deposits of up to €100,000 in foreign-owned banks with branches in this country, including Ulster Bank, First Active and IIB, has already been guaranteed by the Government here.
National Irish Bank, owned by Denmark's Danske Bank, has applied to the Department of Finance to be included in the scheme. It has received indications that it will be accepted.
Rabobank, which operates online, does not come under the €100,000 guarantee scheme as it does not have bank branches. It is guaranteed for up to €38,000 under the Dutch scheme."

So, because Rabo has no physical branches on the street, it appears to be treated differently. Hmmmm! Maybe time to move some funds...
 
Compass said:
From the RTE website:

...

So, because Rabo has no physical branches on the street, it appears to be treated differently. Hmmmm! Maybe time to move some funds...
Click to expand...
You seem to be assuming that RTÉ know what they're talking about here!
 
Right Clubman, maybe RTE are as confused as the rest of us!!

I did also ask Rabo for clarification and they replied thus:

"Thank you for your queries in relation to Deposit and Investor protection. As we are a triple A rated bank we are not at risk. If we were at risk our garantee would be reviewed. Rabobank is not stock listed, so we are not hurt by the recent turmoil on the stock markets worldwide.

In accordance with Irish and EU law, Rabobank is a member of the Dutch Deposit Guarantee System, implemented by the Financial Supervision Act, 2007, which guarantees the interests of account holders, and applies to deposits in current and savings accounts.

Under the Deposit Guarantee Scheme, if Rabobank is unable to meet its obligations to repay a customer’s balance, the customer is guaranteed to be repaid 100% of the first €20,000 of his balance, with 90% of the customer’s next €20,000 also being guaranteed. Accordingly, the customer has a 10% own risk on that part of his balance that is between €20,000 and €40,000...... " etc.

So Rabo is triple A rated and we should rest assured, so they say.
 
As I can edit the above post, I don't mean it as a go at Rabo. But at the rating systems. Dont forget at all these Toxic loans were rated 'AAA'.
 
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