Irish fear for the safety of their deposits in banks.

Foreign-owned  banks with operations in Ireland  have reported large cash inflows in recent weeks – as AIB also reported large amounts of withdrawals

Roel van Veggel, the head of RaboDirect said that the bank  saw substantial increases in call volumes, new account openings and money inflow.
Deposits in Rabodirect are guaranteed by the Dutch Central Bank (upto €100k)

Investec also said they have seen a sizeable increase in enquiries from both the personal and corporate markets and their website for personal customers  has seen a dramatic increase in traffic over the last month.

Investec deposits are covered by the UK  FSA guarantee – which covers £50,000 currently – and will be €100,000 in 2011

Other banks operating in Ireland that have  deposits covered by the UK scheme include Northern Rock, Nationwide UK Ireland and  Leeds Building Society

Free Business Accounts

Minister for Finance Brian Lenihan recently stressed that deposits in Irish-owned banks were safe. He said  “‘‘I wish to reassure all depositors in the guaranteed banks and building societies in Ireland that their deposits continue to be safe and secure.”

Currently, deposits in all Irish banks and Credit Unions of up to €100,000 are covered under the deposit guarantee scheme, which has no end date.

See more about Deposit Guarantees in Ireland