Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Savings - Spreading the risk

Options
  • 17-05-2011 10:41am
    #1
    Stabshauptmann
    Registered Users Posts: 4,885 ✭✭✭


    Hi all, looking for some advice and opinions on where to put my savings.
    I’m extremely risk adverse, and don’t like the idea of putting my money out of reach (fixed term accounts).

    The risk I want to reduce is exposure to Irish banks. I know the details of the ELG, but there is the risk that a) Ireland couldn’t meet its commitments were there a run on the banks and/or b) if Ireland left the euro my savings would be automatically converted to a new, devalued currency.

    I do not wish to discuss how remote both these risks are, like I said, I am extremely risk adverse.

    I also think it might be wise to limit my exposure to currency movements.
    I was thinking of the following setup: an Irish current account for wages etc, a AAA rated euro bank and a AAA rated GBP savings account.

    What do people think about the GBP idea. I think GBP is more stable right now than the euro.
    I don’t know what UK bank I would go for, or what the UK deposit protection rules are, so any suggestions there would also be useful.

    Many thanks!


Advertisement