Safe account to lodge proceeds of family home sale

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dubdub123

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Hi , I'm in the process of selling my home and planning to purchase another property to move into, however the sale/purchase dates are not going to align.
I will have equity following sale of property. Can anyone advise where would be a good place to leave this for a while ? I have a Credit Union account but not sure if they are limits to the lodgements , same with KBC savings account.
I'll need access again in coming weeks/months so just looking to leave this somewhere safe, where it's difficult for me to get to it.
Thanks !
 
dubdub123 said:
so just looking to leave this somewhere safe, where it's difficult for me to get to it.
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This doesn't make sense to me.
Maybe you can clarify?

You should check first if your existing accounts can take the money. If not then...

If you're going to be accessing the money fairly soon then perhaps a current account?

Best Buy - Personal Current accounts

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Not a bank account but have you considered Prize bonds only downside is the initial time limit to withdraw your house proceeds
This is three months but after that takes about a week to release your funds
No interest paid but you might be very lucky and win a few squid
 
dubdub123 said:
Hi , I'm in the process of selling my home and planning to purchase another property to move into, however the sale/purchase dates are not going to align.
I will have equity following sale of property. Can anyone advise where would be a good place to leave this for a while ? I have a Credit Union account but not sure if they are limits to the lodgements , same with KBC savings account.
I'll need access again in coming weeks/months so just looking to leave this somewhere safe, where it's difficult for me to get to it.
Thanks !
Click to expand...
Can you give it to someone else to mind?
 
In a similar situation myself, FWIW there was no limit on my KBC Smart Access Demand account. Interest drops to zero once it goes over something like €50k, but KBC reduced the interest rate to 0.00% a while back anyway so....

In my case I won't need the money for a few months so am putting it in Prize Bonds where it might earn a small return but is fully protected by the state.
 
To clarify, I don't want the proceeds of the sale in my current account, I want to separate it out so it's ready for the purchase.
So reading the above if proceeds are about 100K they are still guaranteed as relating to house sale? This the guarantee also cover Credit Unions?

Not too sure about prize bonds honestly and how I'd given go about purchasing. Once needed, I want to be able to access some / all of sale proceeds to move ahead with purchase.
 
dubdub123 said:
So reading the above if proceeds are about 100K they are still guaranteed as relating to house sale?
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Yes.
dubdub123 said:
This the guarantee also cover Credit Unions?
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I think so but most CUs have much lower limits than €100k on deposits.
dubdub123 said:
Not too sure about prize bonds honestly and how I'd given go about purchasing.
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Ireland State Savings - Prize Bonds | Products | State Savings

Every Prize Bond is in with a chance to win €500,000 each month and up to €50,000 in all weekly draws
www.statesavings.ie www.statesavings.ie
 
dubdub123 said:
So reading the above if proceeds are about 100K they are still guaranteed as relating to house sale?
Click to expand...
Yes.

dubdub123 said:
To clarify, I don't want the proceeds of the sale in my current account, I want to separate it out so it's ready for the purchase.
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Then the simplest thing is to open a deposit account with the bank you have your current account with. This should be simplest as you are already a customer.
 
NoRegretsCoyote said:
Not necessary.

Bank account balances above €100k but less than €1m are state guaranteed for six months if they relate to sale and purchase of a house.

See here.
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I know people fell comforted about the €100,000 State guarantee but can anyone give me an example of where an Irish deposit holder lost their money that was with an Irish bank? Given we had a number of insolvent banks/ building societies recently and no one lost a penny, I would say the guarantee is nothing but a comfort blanket and will never be actually called on.

Steven
www.bluewaterfp.ie
 
Steven Barrett said:
can anyone give me an example of where an Irish deposit holder lost their money that was with an Irish bank?
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With Irish banks capital ratios now so high and the EU's single resolution fund quite large I think there is effectively zero chance of an Irish retail bank failing and a personal customer losing funds.
 
I suppose you could lodge it in to your current account and then get a selection of Bank Drafts payable to yourself.
 
NoRegretsCoyote said:
With Irish banks capital ratios now so high and the EU's single resolution fund quite large I think there is effectively zero chance of an Irish retail bank failing and a personal customer losing funds.
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That's what I think. Spreading savings around banks to avail of their €100,000 is a waste of time. During the financial crises, the ECB said that no European bank would fail. And now we have come out of that without anyone losing money, I think the guarantee is nothing more than to provide people with some level of comfort knowing the State will never have to pay for it.
 
Won't the money from the sale initially sit in your solicitors client account, if it only needs a home for a few weeks, can you not leave it there (not cash the cheque so to speak)
 
Steven Barrett said:
During the financial crises, the ECB said that no European bank would fail.
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Depositors in Cyprus faced haircuts on balances over €100k during the financial crisis. See:

www.irishtimes.com

Cyprus depositors over €100,000 face far worse haircut than thought

Tougher terms send clear signal bailout means end of island as hub for offshore finance
www.irishtimes.com www.irishtimes.com

fwiw, Bank of Ireland and AIB are the two strongest banks in the country. Amounts greater than €100k would be safest in a deposit account with either of these two.
 
TLO said:
Depositors in Cyprus faced haircuts on balances over €100k during the financial crisis. See:
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It was mainly very large non-resident depositors AFAIK.

Since then the EU's Single Resolution Fund has grown (I think €30bn now with a target of €60bn in a few years) and can be used to bail out depositors in the event of a bank resolution.
 
NoRegretsCoyote said:
It was mainly very large non-resident depositors AFAIK.

Since then the EU's Single Resolution Fund has grown (I think €30bn now with a target of €60bn in a few years) and can be used to bail out depositors in the event of a bank resolution.
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Mainly Russian money from what I remember.
 
I have an old BoI savings account, but closed iut my AIB account some time ago.
Would it make sense to lodge across BoI savings and Credit Union?
There could be weeks/months of gap between my sale and purchase, and i am reluctant to leave money in solicitors client account, longer than necessary.
Im trying to avoid putting the money in savings/current account connected to my salary that I use, just in case of any fraudulent activity.
Any guidance appreciated
 
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