Savings

johnmck

My father has some money saved and is worried about leaving it with Ulster bank after what happened last year! He wants to move it away from them. I think his main concern is it's safety - but I tried telling him the banks are guaranteed over what he has saved.

Pablo Sanchez

If its under 100k then he is covered by the deposit guarantee scheme. The ELG (Eligible Liabilities Guarantee Scheme) for sums over 100k would not apply to him as UB are not part of the scheme.

NIMAN

Why would the Ulster Bank be any less safe than the other banks?

Scortho

NIMAN wrote: »

Why would the Ulster Bank be any less safe than the other banks?

It isn't. Think the op's father is worried that his savings would disappear if a computer was to crash. Really couldn't see this happening as they'd have records stored elsewhere as well.

coylemj

johnmck wrote: »

My father has some money saved and is worried about leaving it with Ulster bank after what happened last year!

The main problem with UB last year was that for a few weeks people with current accounts couldn't access money via ATMs and direct debits were all over the place so people who paid utility and credit card bills from their UB accounts were rightly worried about having the electricity disconnected or their credit status affected because of missed or late loan and credit card payments.

Savings accounts weren't affected in the slightest so I really can't see what his problem is and why he's suddenly decided to start worrying about it now after so many months have elapsed.

NIMAN

I know it may be hard to convince him otherwise, but imho he is worrying over something that isn't even a remote possibility.

If there is a 'computer crash' at UB again (even though thats not what happened them the 1st time) then his money will still be safe.

Plus, you could say that UB will have so many internal checks going on now to make sure that it doesn't happen again, that their computer systems are probably more robust than all the other banks.

For the hassle that would be involved in opening a new bank account and moving the money, I don't think its worth it.

But its his money, not mine.

johnmck

He took his money out and transferred it to AIB - it was worrying him too much - too much strain and pressure on the older generation I think - he lost money on Anglo shares like a lot of other people in his generation, as a direct result doesn't trust any institution now.

coylemj

johnmck wrote: »

He took his money out and transferred it to AIB - it was worrying him too much - too much strain and pressure on the older generation I think - he lost money on Anglo shares like a lot of other people in his generation, as a direct result doesn't trust any institution now.

So he put his savings into AIB - whose share price was €20 a few years ago and is now 6c :eek: Didn't you tell him that Ulster Bank is part of RBS? Hardly going to sink without trace in the morning with his money.

Why he didn't he give Michael Fingleton a bell and ask him if he was setting up a new bank?

fits

One way of safeguarding it would to be divide it between a few banks or putting some in government bonds.

NIMAN

Whatever makes the guy feel more safe is the right thing to do in the end, even though it is not one bit safer now than it was in UB.

Kristopherus

johnmck wrote: »

He took his money out and transferred it to AIB - it was worrying him too much - too much strain and pressure on the older generation I think - he lost money on Anglo shares like a lot of other people in his generation, as a direct result doesn't trust any institution now.

In that case he's better off putting it in the proverbial mattress;).

johnmck

look it's made him feel a bit safer - and that's all that matters at the end of the day. Yes under that mattress is the safest. I could only imagine what the governments next target will be - Savings in the Post Office would be an easy target for them

NIMAN

You are being toungue in cheek about the mattress aren't you?

Only an idiot would keep a lot of money at home.

johnmck

I'm messing. Too risky hiding money anywhere in a house nowadays with all the thievery. But I'm sure there are many people who have come to distrust the institutions so much that they do stash the cash.

coylemj

There's an awful lot of misinformation bandied about as 'facts' and older people are more prone to listen to and believe scare stories. After the Lehman Brothers crash the interbank market dried up, this caused a problem for Northern Rock who all of a sudden couldn't access money from the interbank market to fund new mortgages so what happened? Queues of scared depositors formed outside their offices because people believed the rumours that they were bust!

What kept Michael Fingleton going as long as he was allowed to was the lure of a juicy flotation that was going to produce a bonanza of the order of €15,000 per INBS account holder. No politician or regulator was going to be brave enough to rock the boat and get blamed for killing the goose that was about to lay a golden egg so fingers got away with zero regulation and we all know the result. Yet even after all that, no saver lost a cent so I really can't understand what the OP's father has to worry about.