Money Guide Ireland

Sept 2008: The Irish Government has this morning announced it will guarantee all deposits and borrowings in the Irish banking system.

Which banks and building societies are covered?
The six financial institutions involved are AIB, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide and EBS Building Society.

How long does the guarantee last for?
The scheme starts immediately and lasts until in September 2010.

See here for What Happens after September 2010

Which banks in Ireland are not covered ?
It does not apply to Ulster Bank, National Irish Bank, ACC, Rabobank, First Active, Halifax, Leeds, Bank of Scotland – who are all supported by overseas parent banks. Credit Unions are not covered either.

Are business accounts covered?
Yes – all deposits retail (personal) , commercial, institutional and interbank are covered as are “covered bonds”

The announcement came following a day of record losses on the Irish stock market which saw Anglo Irish Bank down 46%.

Only last week the Government guaranteed personal deposits of up to €100,000. Now it has gone further to cover all major deposits by financial institutions with Irish banks and building societies. This guarantee also covers all money borrowed by Irish banks from other financial institutions.

The statement from the Department of Finance says that all deposits, bonds and debt will be covered by the State.
Essentially this is a guarantee that if any Irish bank faces serious problems the Government will step in. The two year guarantee is being provided on commercial terms to the institutions.
The backing would be subject to conditions which would protect taxpayers interests.

Extract from Dept Finance Statement
‘The decision has been taken by Government to remove any uncertainty on the part of counterparties and customers of the six credit institutions,’
‘The Government’s objective in taking this decisive action is to maintain financial stability for the benefit of depositors and businesses and is in the best interests of the Irish economy,’
‘This very important initiative by the Government is designed to safeguard the Irish financial system and to remedy a serious disturbance in the economy caused by the recent turmoil in the international financial markets,’

The Irish market has reacted positively to the statement on the guaranteeing of deposits and loans in Irish owned banks.
The ISEQ index was up 3.7% in the first 15 minutes of trade.
The banks are making back some of yesterday’s heavy losses with Anglo Irish Bank soaring 49%, Irish Life and Permanent jumping 40%, Bank of Ireland gaining 22% and AIB up 14%.

After the recent rise in the Irish deposit guarantee to €100,000 Euro – UK residents will have more protection of their savings if they move them to an Irish based institution.
The UK Post Office accounts are provided by the Bank of Ireland – The Post Office’s cash Isa pays a respectable 6.25%, dropping to 5% after a year. The Post Office’s branch based Instant Saver offers 4.25% on deposits of £500 and above.

Anglo Irish Bank offers 7.05% on its one-year fixed rate bond and an easy access account paying 6.40% — just slightly lower than the best rate available from West Bromwich at 6.56%.
None of these accounts are available to Irish residents.

From Sept 29th Anglo Irish bank are increasing the rate on the Premium Demand account to 5.5% and the upper limit is rising from 20k to 100k.
This is obviously a reaction to the deposit guarantee rising to 100k at the weekend.
I wonder if any other banks will rise to the Anglo challenge and put rates up too. Watch this space for more news. The Best Buys table will be updated regularly.

The Irish Government has today announced an increase in the amount of money it guarantees in deposit accounts. The guaranteed amount has risen from €20,000 to €100,000 .
Minister for Finance Brian Lenihan announced the propsed change today – it will make Ireland’s deposit protection scheme one of the highest in Europe.

The guarantee will apply to 100 per cent of each individual’s deposit and the guarantee level will also apply to credit union savers.
Up to now there was no guaranteed protection for Credit Unions.
The new limit will require legislation but will be backdated to today.

Leeds Building Society Ireland are offering a few options for savings accounts – but nothing that will see them near the top of the Best Buys pages.
Interest rates start at 4.35% for minimum of €2500 on the 30 Day notice account. The best rate offered by LBS Ireland is 5.4% fixed for one year on min €25K. Both of these rates can be bettered elsewhere. See our listing of best interest rates in Ireland.
Leeds only have one branch – in Dublin.
The Leedsbuildingsociety.ie website isn’t really active – it redirects visitors to a sub section of their UK site.

Contact Details for Leeds Building Society in Ireland:

Tel.: 0818 222 337 between 8am – 8pm, 7 days a week

Leeds Building Society (Ireland),
Ground Floor
7 Upper Fitzwilliam Street
Dublin 2.

Opening hours of Branch:
Mon – Fri: 09:00 – 17:00

Irish online shoppers can save a few euro in September with some special vouchers and codes we have uncovered for you. Every little helps these days. Ten euro in your pocket is better than in the retailers profits…..
Tesco Ireland have 2 vouchers for €10 euro off online shopping delivery . You just need to go to the Tesco Vouchers September 2008 page and print off the tokens to hand to the delivery driver.
One token for week commencing Sept 1st and another for week commencing Sept 8th.

EXPIRED

Anglo Irish Bank have a new 6% gross/AER Fixed rate on a new 1 year fixed term deposit account, available from next Monday September 8th 2008.
Only €1,000 minimum – no max amount and 10% access on demand.
Contact Anglo Irish Bank on Lo-Call 1850 44 22 22 (8am – 8pm Monday to Friday) or by email at savings@angloirishbank.ie