Non Eurozone banking options

Gosub

With the recent turmoil in Cyprus and the resulting loss of confidence in Eurozone banks, I was wondering what options we have regarding moving funds out of Irish banks and into a more stable system. Perhaps in a Swiss bank?

I know some of the banks can have high transaction and annual fees. But are there any good/cheaper options for us?

GerardKeating

Gosub wrote: »

With the recent turmoil in Cyprus and the resulting loss of confidence in Eurozone banks, I was wondering what options we have regarding moving funds out of Irish banks and into a more stable system. Perhaps in a Swiss bank?

I know some of the banks can have high transaction and annual fees. But are there any good/cheaper options for us?

But the swiss have in the past (2011) devalued the CHF to keep it pegged against the euro, so is it really a safe haven.

Gosub

GerardKeating wrote: »

But the swiss have in the past (2011) devalued the CHF to keep it pegged against the euro, so is it really a safe haven.

Yeah. Hence the question mark.

I just don't want to fall victim to account plundering, or, worse still, one of my banks going down the tubes. I'm exposed in both Irish and Spanish banks. The latter is my main worry.

handlemaster

Gosub wrote: »

Yeah. Hence the question mark.

I just don't want to fall victim to account plundering, or, worse still, one of my banks going down the tubes. I'm exposed in both Irish and Spanish banks. The latter is my main worry.

Id say your in a pickle with the spain one alright. But it appears Cyprus was an unusual case.

Gosub

I can move the Spanish funds to Ireland. But that's just all eggs in one basket.

Jim2007

GerardKeating wrote: »

But the swiss have in the past (2011) devalued the CHF to keep it pegged against the euro, so is it really a safe haven.

And that is just for starters! In addition, our guarantee system is capped at 9b Francs, we have a long tradition of letting banks go to the wall and yes we have the concept of negative interest rates when customers place too much on deposit.

It never ceases to amaze me how people are so willing to move funds out of an environment that they are familiar with and into one where they have not got a clue, just because it makes them feel good.

hfallada

The reality is Irish banks are safe. They're capitalised for major losses to come. The government isnt go to screw the tax payer over with the billions it invested to restore confindence in the banking system to destroy it again.

Cyprus makes up 0,2% of the Eurozone GDP so it's a drop in a very very large ocean.

Having said that you put money in bank of Ireland as it seems to be stable again or rabodirect with an excellent credit rating. Or nationwide the british bank is on Baggot street Dublin.

I can't see Swiss bank being bothered with small customer with the Americas putting so much pressure on them allowing non residents to open accounts. But if you want trouble and expense go for it

Gosub

No, I don't want trouble and expense. That's why I asked the question in the first place. I'm aware that the Swiss bank option is not the most attractive and it would be well down my list of options... If I had such a list. What I was hoping to generate was not a list of bad things about Swiss banking, but a debate that would throw up some other options that would earn a position further up any list.

I'm also aware of all of the shady offshore options and I don't want or need to go there. I have nothing to hide from the taxman, unfortunately.

roro2

You're worried about a potential levy of 6.75% - 9.9% in Cyprus being implemented in the entire Eurozone? I don't think its even likely in Cyprus anymore, and the time for worrying about the safety of deposits in Irish banks is past in my opinion. But once you put money in a different currency, you're exposed to currency fluctuations from day 1. Euro vs USD - 13% fluctuation in the past year and a 20% change in the space of 3 months back in 2008. Eur-GBP - 12% change in the past year. Of course you could gain from these movements, especially if there's more trouble in Europe, but it wouldn't really be the actions of someone concerned with capital preservation.

Gosub

roro2 wrote: »

You're worried about a potential levy of 6.75% - 9.9% in Cyprus being implemented in the entire Eurozone? I don't think its even likely in Cyprus anymore, and the time for worrying about the safety of deposits in Irish banks is past in my opinion. But once you put money in a different currency, you're exposed to currency fluctuations from day 1. Euro vs USD - 13% fluctuation in the past year and a 20% change in the space of 3 months back in 2008. Eur-GBP - 12% change in the past year. Of course you could gain from these movements, especially if there's more trouble in Europe, but it wouldn't really be the actions of someone concerned with capital preservation.

Well, more specifically, I'm worried about my Spanish bank (Part of the Popular group) doing something stupid. Every time I go in now they're trying to sell me shares or insurance. The group is in trouble with their debt level and the real work hasn't started on the property debt here.

The problem might resolve itself though. The propeerty prices in Wexford, where I want to buy, have thrown up some good value in the last 2 weeks. Maybe it's time to put the funds into property, and take the taxes there on the chin. I plan to return to Ireland in the short to medium term anyway.

Jim2007

Gosub wrote: »

Well, more specifically, I'm worried about my Spanish bank (Part of the Popular group) doing something stupid. Every time I go in now they're trying to sell me shares or insurance. The group is in trouble with their debt level and the real work hasn't started on the property debt here.

The problem might resolve itself though. The propeerty prices in Wexford, where I want to buy, have thrown up some good value in the last 2 weeks. Maybe it's time to put the funds into property, and take the taxes there on the chin. I plan to return to Ireland in the short to medium term anyway.

The only real way to reduce risk is to diversify - spread your cash around over a few banks rather than one and always remember the higher returns always means more risk of some kind.