Natwest considering closing Ulster Bank in the ROI

Spocker

Thread over here -> https://www.boards.ie/vbulletin/showthread.php?t=2058114217

jj880

JTMan wrote: »

You can.
- KBC are free if you deposit 2k per month (via Extra product).

Just took a closer look at KBC. It seems they have a standard account. As long you keep 2k in it and dont mess about (unpaid direct debits, lose your cards or unauthorized overdrafts etc.) its basically free banking. Unless Im missing something? Looks good to me. Thanks for that.

Maybe by the time UB close up KBC will have a branch closer to me in Donegal. Im sure they have good phone / online support. EDIT: not according to google reviews. 3.2 out of 5 for 106 reviews. A lot of complaints about support and account errors. Think I'll look elsewhere.

silver2020

jj880 wrote: »

Just took a closer look at KBC. It seems they have a standard account. As long you keep 2k in it and dont mess about (unpaid direct debits, lose your cards or unauthorized overdrafts etc.) its basically free banking. Unless Im missing something? Looks good to me. Thanks for that.

Maybe by the time UB close up KBC will have a branch closer to me in Donegal. Im sure they have good phone / online support. EDIT: not according to google reviews. 3.2 out of 5 for 106 reviews. A lot of complaints about support and account errors. Think I'll look elsewhere.

yes, basic banking is free with KBC as long as you keep €2,000 in it.

No chance of KBC opening a branch. They are in effect a virtual bank with a couple of hubs They even closed the Naas hub as it wasn't busy enough.

Even if they opened a hub, it would be cashless and very much a sales office.

Henry Ford III

Threads merged.

Cal04

What would happen with people over 100k in savings if they close. Can banks close immediately or has notice to be given.Not me, I wish but possibly an ex family member

silver2020

Cal04 wrote: »

What would happen with people over 100k in savings if they close. Can banks close immediately or has notice to be given.Not me, I wish but possibly an ex family member

They are solvent. They are not going into liquidation. The are looking at an orderly withdrawal over a period of at least a year - possibly much longer

If you have €5m in a deposit account, you get your €5m

They actually have €20 BILLION of deposits on their books and all €20 BILLION goes to the customers that own it.

There is no rush whatsoever for anyone to do anything (I'm a UB customer - transferred from Dankse )

Timing belt

Cal04 wrote: »

What would happen with people over 100k in savings if they close. Can banks close immediately or has notice to be given.Not me, I wish but possibly an ex family member

they will contact customers and give notice if they exit

Timing belt

silver2020 wrote: »

They are solvent. They are not going into liquidation. The are looking at an orderly withdrawal over a period of at least a year - possibly much longer

If you have €5m in a deposit account, you get your €5m

They actually have €20 BILLION of deposits on their books and all €20 BILLION goes to the customers that own it.

There is no rush whatsoever for anyone to do anything (I'm a UB customer - transferred from Dankse )

The other Irish banks must be dreading another 20billion of deposits... especially if they can't pass on negative interest rates.... It will cost them.

jj880

JTMan wrote: »

You are betting on this Friday so.

The results are announced to the stock market at around 6/7 AM on Friday 19 February so Friday evening on 19 February will be too late.

https://www.rte.ie/news/business/2021/0209/1196105-donohoe-warns-of-consequences-of-ulster-bank-withdrawal/

According to RTE:
"Market analysts think it is likely that NatWest will provide an update on its review when it reports its annual results next week."

Pascal doesn't sound too positive about it. Also making sure everyone knows it's out of his hands before it's announced.

Jim2007

Cal04 wrote: »

What would happen with people over 100k in savings if they close. Can banks close immediately or has notice to be given.Not me, I wish but possibly an ex family member

We need to be very clear about this: there is no question of anyone’s deposits at risk.

We are talking here about the bank deciding to cease it business and the hassle it will create. Generally speaking, unless the bank itself is taken over we can expect:

- Account holders will be give a time period in which they need to transfer their business else where.

- Asset Management/Private Banking type clients will be offered a deal to transfer their business to another Asset Manager organization or make their own arrangements

- The various loan books will be sold off.

Jim2007

Timing belt wrote: »

The other Irish banks must be dreading another 20billion of deposits... especially if they can't pass on negative interest rates.... It will cost them.

Customer should be concerned as well, another 20 billion going it means that the days of negative rates moves a little closer.

But based on my experience here (Switzerland) I say it’s 3 to 5 years away. It’s 5 years ago since negative rates were introduced for government and state bodies, but it is only now coming hitting retail customers.

silver2020

Jim2007 wrote: »

Customer should be concerned as well, another 20 billion going it means that the days of negative rates moves a little closer.

But based on my experience here (Switzerland) I say it’s 3 to 5 years away. It’s 5 years ago since negative rates were introduced for government and state bodies, but it is only now coming hitting retail customers.

Negative interest rates are here for larger depositors, but in a roundabout way, also ordinary people as Credit Unions are charged for their deposits they hold in the banks.

I reckon that this year will see all deposits over 100k will have negative rates applied

JTMan

Jim2007 wrote: »

But based on my experience here (Switzerland) I say it’s 3 to 5 years away.

Already here in a certain way:
- Corporate depositors have negative rates with most banks.
- N26 apply negative rates to balances over 50k for those who signed up recently.
- Degiro apply negative rates on balances over 2k.
- EBS apply a cap of 500k (whilst a cap is not a negative rate it is a way around not charging negative rates).
- CU apply various different caps often around 20k.

More is on the way:
- Widely reported that AIB will apply negative rates to deposits over 1 million very soon. (AIB edited T&C's last year to allow negative rates).
- Media reports say that other banks will follow AIB's lead.

Jim2007

JTMan wrote: »

Already here in a certain way:
- Corporate depositors have negative rates with most banks.
- N26 apply negative rates to balances over 50k for those who signed up recently.
- Degiro apply negative rates on balances over 2k.
- EBS apply a cap of 500k (whilst a cap is not a negative rate it is a way around not charging negative rates).
- CU apply various different caps often around 20k.

More is on the way:
- Widely reported that AIB will apply negative rates to deposits over 1 million very soon. (AIB edited T&C's last year to allow negative rates).
- Media reports say that other banks will follow AIB's lead.

We’ll have to wait and see, most of the measures targeting high wealth accounts came quickly in Switzerland, but it is now, almost four years later, that it has started to hit the average person in the street.

I’d like to think it’s some ways off and that it might never hit the average person, but I could be completely wrong.

JTMan

It depends on whether we are talking about 'retail savers' or the 'average person'.

A small number of banks already charge high network retail savers. AIB and others are about to do so too according to multiple media reports.

Regarding the 'average person', given that thresholds are mainly high, this is not going to effect the average person for the foreseeable future.

Timing belt

JTMan wrote: »

It depends on whether we are talking about 'retail savers' or the 'average person'.

A small number of banks already charge high network retail savers. AIB and others are about to do so too according to multiple media reports.

Regarding the 'average person', given that thresholds are mainly high, this is not going to effect the average person for the foreseeable future.

Thresholds will drop over time and capture more people in the net. In fairness the banks will need to do unless they are to start posting a loss every year as their back book of higher yielding bonds will roll off and be replaced with negative rates.

JTMan

Timing belt wrote: »

Thresholds will drop over time and capture more people in the net. In fairness the banks will need to do unless they are to start posting a loss every year as their back book of higher yielding bonds will roll off and be replaced with negative rates.

Absolutely thresholds for negative rates will probably drop over time and cap deposits thresholds, for those that apply them, will probably drop too. Many German banks started with 2 million+ as the threshold for negative rates and now apply a 50k threshold.

I remember reading previously that the average person has 20k on deposit, it is unlikely to drop to that level for the foreseeable future.

jj880

https://www.independent.ie/business/personal-finance/mortgage-rates-could-rise-again-if-ulster-bank-quits-40075014.html

"If Ulster Bank takes the nuclear option of leaving the Irish market it’ll be a huge blow to competition and could put upward pressure on rates in the medium term.”

He said a closure move by Ulster Bank would reverse the slow downward trend in mortgage rates seen in the last few years."

brownbinman

I'm currently with UB and coming to end of my fixed term at 2.99%. I've been offered 2.2%, lowest around really

I'm wondering if I stay with them and fixed for 5 years and they leave the market, will I need to find a new lender at potentially a higher % or will other banks buy the loan book?

corsav6

brownbinman wrote: »

I'm currently with UB and coming to end of my fixed term at 2.99%. I've been offered 2.2%, lowest around really

I'm wondering if I stay with them and fixed for 5 years and they leave the market, will I need to find a new lender at potentially a higher % or will other banks buy the loan book?

Most posts here are saying mortgages will be sold with existing conditions so you should be fine.

brownbinman

corsav6 wrote: »

Most posts here are saying mortgages will be sold with existing conditions so you should be fine.

perfect cheers! apologies for missing other posts

JTMan

brownbinman wrote: »

I'm currently with UB and coming to end of my fixed term at 2.99%. I've been offered 2.2%, lowest around really

Avant will let you fix for 1.95%.

Yyhhuuu

I currently have a home saver account regular saver with ulster paying0.85%. I wonder if they close how long I will have before I must close account?

Paul_Mc1988

brownbinman wrote: »

perfect cheers! apologies for missing other posts

Your terms and conditions must and always will transfer over. The issue with these banks (pepper money etc) is if you miss a payment they are a disaster.

I'm with ulster Bank also. Fixed for 4 years until december 23. If ulster pull out it won't affect me really and if I'm with another bank at the time the fixed rate is up I'll just switch to the lowest rate once more. The thing is, I do like is the overpayment option with the ulster bank fixed rate which most banks don't allow. Currently 1 year into my mortgage but have the capital amount remaining at year 3. Could have it payed of in 7-8 years instead of 30

JTMan

Yyhhuuu wrote: »

I currently have a home saver account regular saver with ulster paying0.85%. I wonder if they close how long I will have before I must close account?

Nobody knows but the speculation is 6 months. However, the rate could go to zero long before that.

Q&A

JTMan wrote: »

Nobody knows but the speculation is 6 months. However, the rate could go to zero long before that.

Does them no favours paying over the odds for any longer then they need to.

It'll happen sooner rather than later. Only reason not to cut on day of announcement would be the fact people might not notice with all the press sounding closure.

Any day past announcement date that the rate doesn't reduce is a gift.

Atlantic Dawn

I see NatWest will be rolling out MasterCard debit cards instead of Visa across each entity in the group...
https://www.reuters.com/article/uk-mastercard-natwest-idUSKBN2A40XK

Squeaksoutloud

I am still on a variable rate with Ulster Bank for my mortgage. Would i be better off fixing now rather than facing variable rate increases if the loans are sold off to another provider?

Q&A

Squeaksoutloud wrote: »

I am still on a variable rate with Ulster Bank for my mortgage. Would i be better off fixing now rather than facing variable rate increases if the loans are sold off to another provider?

Regardless of what happens after any decision by NatWest you'd likely be better off being on a fixed. What rate are you currently paying? Any reason why you haven't availed of a fixed rate previously?

Squeaksoutloud

I reviewed the mortgage last year and ended up changing out Term by paying more per month. I also reviewed the fixed vs variable and decided not to change as:

1. was considering doing a lump sum payment. Those funds are going elsewhere now.
2. Wanted to see how we got on with the higher monthly figure and was half thinking of pushing it higher again so wanted full flexibility.

Now that the two items above are dealt with I think you are right - variably currently 3.2% and it is a no brainer to fix now @ 2.2% for 2 years or 2.35% for 4/5 years.

UB still allow additional payments on fixed rates?