Savings Protection Options

FuzzyFrog

Given the continuous bad omens from the international markets and the resultant increase in the cost to the state of Irish bonds there is a lot of concerns over peoples personal savings. Despite Irish government and EU guarantees I'm getting increasingly nervous that a bank will go and we'll be the last to know. Or at the very least the government is going to try and grab back some of these savings in some randomly named tax. What options does an ordinary person have to move their money out of the country?

Jet Black

Out of interest where would you move it? The majority of the world is in the same postion Ireland is in.

If your not happy with your bank would you be more comfortable moving it to a credit union or to the post office?

Kennie1

Jet Black wrote: »

Out of interest where would you move it? The majority of the world is in the same postion Ireland is in.

If your not happy with your bank would you be more comfortable moving it to a credit union or to the post office?

I would suspect that credit unions are in a similar position as the banks and have customers defaulting on their loans left right and centre as well! Dont forget that the post office is state owned and money is at the same risk as being in the bank.

Still face the same taxes on your money regardless of what state your money is deposited in. People lodged money in off shore acounts in the 80s to try and avoid tax, let it be income or dirt and we all know what happened to them when revenue caught up with them! Also if moved to another state the deposit may not be fully covered as it is in this state. Post office is giving best interest rate as you dont pay dirt tax on post office deposits. If you want to keep your money in a bank PTSB is the only Irish bank that is not in NAMA but like the other banks they have their own problems but they have a very profitable life company that is covering the losses

Ogham

Try one of the following - they can all be easily accessed by Irish residents and deposits can be made in Euros

Rabobank The Dutch Central Bank Dutch Deposit Guarantee Scheme; 100% of the first €100,000 per person..
Investec 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 first £50,000 (approx €60,000) is protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme covers the balance up to €100,000 per customer.

Taken From - http://www.moneyguideireland.com/summary-of-deposit-guarantees-in-ireland.html

Also - the UK guarantee is rising to €100k from Jan 2011

http://www.moneyguideireland.com/uk-savings-guarantee-to-rise-to-e100000.html

FuzzyFrog

Ok, to insulate yourself from a bank crash here you might put your savings in a bank like Rabo etc but what about avoiding the swipe of the Irish government. The strong likelihood is that the December budget will hit savings. This may be in the form of another tax on interest gained from savings but it could be on your ACTUAL lump sum, nothing to do with future earnings on it. I mean i'd have a problem with the tax on the interest from my savings but the actual lump sum itself, that I take personal umbrage too. I've already been taxed on that before I saved it! This is what I'd really like to find a way of protecting myself from.

eagle_i

FF, no body likes paying taxes, but it is a fact of life. Not many of us are in the prime position like Denis O'Brien or Michael Smurfit to play the non-resident game and flit in and out of the country, minimising their tax liability. If the taxes are due, then the revenue will collect or penalise those that try to avoid, as Kennie described above. Thinking about it in logical way, they are unlikely to tax the capital which you saved from taxed income, this will only have the effect of people not saving and ultimately trying to find tax free haven/avoidance system which will only result in money moving out the country! It is for this very reason they put the blanket guarantee in place, to stop investors taking the money out of the country.