Money Guide Ireland

With Anglo Irish Bank apparently soon to announce losses of 12 Billion Euro – is it time to cut the losses and close it down?  This article by David McWilliams suggests it is.
In the article titled “Money-Sucking Anglo is our Financial Stalingrad” - he compares it to the battle for Stalingrad in the Second World War. Germany kept fighting for Stalingrad – even though they couldn’t win. Hitler thought that the  credibility of the German war effort was on the line in Stalingrad. He was convinced that if they cut their losses there, their credibility as a fighting force would be irreparably damaged.

For the second time in a few weeks – Irish Nationwide have increased the interest rate on their 12 month fixed rate deposit account. The new rate is 3.5% – it was previously 3.35% . The only 12 month fixed rate higher than that in Ireland now is 3.6% from Investec. Both accounts need a €20k minimum deposit though. Anglo Irish are paying 3.5% to – with a €1 minimum deposit

See the top 12 month fixed rate savings accounts here

Anglo Irish Bank are no longer accepting new applications to open a regular saver account – which was paying 4% AER on deposits of up to €1000 a month.
The account could only be held for a year.
See the latest rates on Regular Saver Accounts in Ireland

We understand the following protection is in place with the following institutions: This is the latest information on the level of guarantee or protection for money held in Irish financial institutions or those operating in Ireland.
Updated January 2010

Allied Irish Banks plc (AIB) Irish Government guarantees all deposits to Sept 2010
Anglo Irish Bank Corp. Irish Government guarantees all deposits to Sept 2010
Irish Life & Permanent plc (PTSB) Irish Government guarantees all deposits to Sept 2010
Bank of Ireland - -Irish Government guarantees all deposits to Sept 2010
EBS Building Society Irish Government guarantees all deposits to Sept 2010
Irish Nationwide Building Society Irish Government guarantees all deposits to Sept 2010

Read more about the Extension to the September 2010 Guarantee here

Post Office Savings Bank;(Not Postbank) below. State body Irish Government guarantees all deposits (always did)

ACC Bank Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
Bank of Scotland (Ireland) t/a Halifax Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
Danske t/a National Irish Bank The Danish Financial Regulator While Danske t/a National Irish Bank is a branch of an overseas institution;the Minister for Finance has confirmed that savers with branches of overseas banks operating in Ireland will benefit from the enhanced €100k guarantee providing the branch concerned has confirmed its intention to the Financial Regulator to participate in Ireland’s Deposit Guarantee Scheme.;Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;

Credit Unions Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
First Active plc Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
ICS Building Society;Note: ICS is a subsidiary of BOI and can apply to Govt for full guarantee – but currently is under the Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
IIB Bank Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
Pfizer International Bank Europe Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;
Postbank Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;Full details here
Ulster Bank Irish Deposit Protection Scheme – 100% of deposits up to max. €100,000;

Credit institutions covered by other schemes

Rabobank The Dutch Central Bank Dutch Deposit Guarantee Scheme;100% of the first €20,000, 90% of the next €20,000.;Doubled for joint account holders.
Investec Bank (UK) Ltd The UK FSA Financial Services Compensation Scheme;100% of the first £50,000 per person.
Leeds Building Society The UK FSA Financial Services Compensation Scheme;100% of the first £50,000 per person.
Northern Rock The UK FSA Deposits held with Northern Rock are guaranteed in full by the Bank of England and HM Treasury.

Anglo Irish Bank have reduced the interest rate on their Regular Saver Account this week
The rate – which  was 5% has now been dropped to 4%

See Best Regular Savings Rates here

Anglo Irish Bank has lowered the interest rate on it’s Premium Demand Account from  3.6% to 3.1% .  The best on demand rate at the moment for amounts under 10k is from Halifax at 3.75%. For amounts over that – Nationwide UK has the best rate of 3.55%.

Anglo Irish has also re-introduced it’s 12 month fixed rate deposit account with a rate of 3.8%  – this account was withdrawn a few weeks ago. Rates on other fixed term deposits have also gone down at Anglo Irish – for example the 2 year fixed rate is now 3.25% and was previously 3.5% .

See the best Irish deposit rates here

AIB dropped the rate on their regular saver account last week – and Anglo Irish have now also reduced the interest rate. The drop is only 0.5% (from 5.5 to 5%). It is still the highest rate in Ireland for regular savers. See full table here.

Fraud squad officers and white-collar crime investigators have raided the headquarters of Anglo Irish Bank, in Dublin. It’s understood they’re looking for books, documents and other materials which could provide evidence of any offences under company law.

Gardai attached to the Garda Bureau of Fraud Investigation have been called in to assist other officers working with the Director of Corporate Enforcement.

A garda spokesperson said the searches are part of an ongoing investigation with regard to suspected offences under the Companies Act.

Anglo Irish was involved in a loans controversy in December last year when Chairman Sean Fitzpatrick admitted he had hidden a total of €87 million in loans from the bank.

This triggered a series of incidents which led to the eventual nationalisation of Anglo in January this year.

Hardly a surprise raid though – is it. Any incriminating evidence will have been destroyed ages ago. Talk about bolting the stable door….. I suppose they have to be seen to do something. I wonder if any of the millionaire bankers or developers  will end up being prosecuted?