Very confused - 40k to put away for a rainy day

Have 50,000 euro to deposit. We were thinking of depositing it in a sterling account in Ulster Bank in Newry. Now Bank of Ireland in Republic have told us we can open a sterling account with them. Interest rate very poor but feel sterling is safe. Would we be better off going up to Newry? Need advice please!

What's the worst case scenario? Ireland defaults and is ejected from the Euro. Euro denominated deposits in Irish banks (and Irish branches of foreign banks) are redenominated to "Punt 2" which immediately devalues by 50%.

In theory non Euro denominated deposits should be okay but during other historical currency crises, governments have on occasion frozen foreign denominated deposit accounts in their countries' banks.

On this basis, my own personal view is that a Euro or non Euro denominated deposit account in any non "PIIGS" country is probably the safest bet.

Notwithstanding the above, for Irish tax residents or Irish domiciled individuals the Irish government would probably be free to go after their foreign located deposits anyway through the tax system (with something akin to the domicile levy).
 
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