Permanent TSB has entered into an agreement to take over the accounts of Northern Rock Ireland (NRI)
Northern Rock Ireland savings accounts are currently about €650 million – representing less than 5pc of Northern Rock’s total retail deposits . The sale to Permanent TSBb is expected to be completed by the end of the year and will require the approval of the Irish finance minister.
The deal will see Permanent TSB take on all 21 of Northern Rock’s Irish staff, as well as some 17,000 NR accounts.
Savings from Irish customers in Northern Rock are currently protected by the UK Financial Services Compensation Scheme, which covers up to €100,000 Euro per person.
After the transfer of accounts to PTSB – they will be covered by the Irish Deposit Protection Scheme, which also covers up to €100,000 per person .
Many NR Irish customers may have originally moved some or all of their money to Northern Rock for the security of the UK bank guarantee scheme – or at least to reduce their reliance on the Irish scheme . So – it is possible that Permanent TSB will struggle to retain these NR deposits because some savers may just move their deposits to another UK bank trading out of Ireland . (ie – Leeds / Nationwide UK )
Northern Rock are currently paying 2.5% interest on their online instant access account. Nationwide UK are paying 3% at the moment and Leeds offer 2.1%
See all the Best Deposit Rates in Ireland – including UK based banks.
PTSB say that the transfer is expected to take place towards the end of 2011 and customers are not required to do anything as a result of this announcement. Northern Rock accounts can still be accessed as normal.