Irish Banks 100% Safe

The Irish Government last night offered 100% protection on deposits in Irish bank accounts, including to UK customers.

Last week the compensation level raised from €20k to €100k on Irish banks, including Anglo Irish Bank (AIB), Bank of Ireland, Allied Irish Bank and Post Office.

The guarantee isn’t open ended, the protection is for 2-years only, ending 28 September 2010. The only other institutions to offer a 100% savings guarantee within the UK include the nationalised Northern Rock, National Savings & Investments and the savings accounts of Bradford & Bingley, since yesterday’s announcement, but only until the handover to Santander is completed.

Last night’s announcement does cover all Irish banks and their subsidiaries, unlike last week’s raise. Therefore, the Allied Irish Bank, which uses a UK licence for UK branches, is fully covered.

It is expected that there will be further pressure on Alistair Darling to increase the £35k cover to £50k for UK banks quite soon, as was promised at the end of the summer. Further pressure might be brought to simplify the compensation system, which merges banks under different names that use the same license, for example Halifax, Bank of Scotland, Intelligent Finance and AA Financial Services, which all fall under the same license.

30/9/2008 (filed under banking)

September
16th More Premium Bond Winners

November
21st October Sales Increase
12th Stamp Duty Holiday Failed
7th 2% Off House Prices

October
20th Sell Your Home, For Free!
14th House Prices Still Have Another 10% Drop
8th Mortgage Rates Cut
8th Coordinated Rate Cuts
2nd Northern Rock Swamped By Savers
2nd Biggest House Price Fall Yet

September
29th Power Giants ’Ripped Off’ Customers
29th Santander To Buy B&B Savings
29th Lloyds Fixed Rates Increased
28th B&B To Be Nationalised
26th More Banks Raise Cost Of Borrowing
26th Rate Cut On The Horizon
26th House Prices Fall £45 Per Day
25th Post Office Savings Safe To £80k
23rd Straw Attacks No-Win No-Fee System
22nd London Asking Prices On The Up
18th Oil Down 40%, Petrol Up
15th Don’t Pay For Banking
11th Barrat Helping House Prices
10th OPEC Forces Fuel Price Up
9th House Prices Could Drop 25%
9th Credit Cards Soon To Be Extinct
7th House Prices Will Not Lift Until 2010
7th Brown’s Triumph - a £50 a Year Fuel Levy
6th Oil Slips, Petrol Sticks
5th Sterling 30 month low
5th Energy Profits Up
4th No Interest Rate Change
4th Halifax - Worst House Price Drop Ever
4th No Change To European Interest Rates
3rd Rampant Inflation Curbs Hopes of Rate Cut
3rd Britain Only Leading Country In Recession
2nd Tories Would All But Scrap Inheritance Tax
2nd Stamp Duty Threshold Raised, For Now

August
28th Biggest House Price Fall For 18 Years
27th Landlords Struggle to Pay Their Debts
26th Fixed rate mortgages rates drop
22nd Halifax Closing A Quarter of Branches
22nd Bank Must Cut Interest Rates
21st Interest Rates Could Be Cut
19th Fastest ever increase in rentals
18th BCC Wants Interest Rates Cut
16th Repossession orders up by 24% on last year
13th Rate cuts unlikely
7th Bank Holds Rates

July
23rd August Interest Rate Rises?
14th Cheaper Extended Mortgages - Cost More Eventually
10th House prices fall £3,600
10th Interest Rates on Hold
7th Interest Rates - Which Way Now?
4th Mortgages harder to come by