Bank Deposit Protection Scheme

[Snaipyr]

Are there any plans to increase the amount of protection offered to bank depositors in the IOM? Ireland has just raised the amount of protection from 20,000 to 100,000 euros. In the IOM it is £15,000 and I'm not sure what it is in the UK - £40,000?

 

Please can someone explain why it's so low in the IOM. I haven't got loads in the bank but am a Trustee responsible for a relative's money so want to do what I can to protect it for them. If I moved it to an Irish Bank here would I get the Irish guarantee or the Manx one?

[hboy]

Are there any plans to increase the amount of protection offered to bank depositors in the IOM? Ireland has just raised the amount of protection from 20,000 to 100,000 euros. In the IOM it is £15,000 and I'm not sure what it is in the UK - £40,000?

 

Please can someone explain why it's so low in the IOM. I haven't got loads in the bank but am a Trustee responsible for a relative's money so want to do what I can to protect it for them. If I moved it to an Irish Bank here would I get the Irish guarantee or the Manx one?

 

 

http://www.iomtoday.co.im/isle-of-man-busi...tion.4228105.jp

[Snaipyr]

Are there any plans to increase the amount of protection offered to bank depositors in the IOM? Ireland has just raised the amount of protection from 20,000 to 100,000 euros. In the IOM it is £15,000 and I'm not sure what it is in the UK - £40,000?

 

Please can someone explain why it's so low in the IOM. I haven't got loads in the bank but am a Trustee responsible for a relative's money so want to do what I can to protect it for them. If I moved it to an Irish Bank here would I get the Irish guarantee or the Manx one?

 

 

http://www.iomtoday.co.im/isle-of-man-busi...tion.4228105.jp

 

That was very helpful - thank you.

[pongo]

Irish govt depositor protection also applies to Irish banks operating in the UK according to The Times (and other sources). Do any of the money experts here know whether the Irish scheme also now protects IOM savers?

 

Last week, the Irish government bolstered protection for depositors to a maximum of €100,000 (£79,400) — more than double the guarantee offered by the UK scheme at £35,000.

 

The increase in Ireland’s limit applies to UK savers with Post Office accounts, which are provided by the Bank of Ireland, and other Irish banks operating in the UK, including Allied Irish Bank, Anglo Irish Bank and Bank of Ireland.

 

http://www.timesonline.co.uk

[thesultanofsheight]

Do any of the money experts here know whether the Irish scheme also now protects IOM savers?

 

It won't protect Manx savers with money in an Irish bank thats operating here because all the Irish Banks with a presence in the IOM are separate subsidiaries of their Irish parents they are not, to my knowledge, branches of Irish banks. In all cases the IOM compensation scheme only would apply if the Manx subsidiary went tits up.

 

The only way you'd be covered by the Irish scheme is if you had money in an Irish Bank in Ireland or the UK, or the bank you use is a branch of the Irish operating company.

[pongo]

Thanks for the explanation.

 

If I were to opt to put my savings in a bank in Ireland then any income would be taxed at 20% at source. But the rates seem pretty good. It starts to look like quite a good deal for the moment.

 

The IOM deposit guarantee scheme seems a bit inadequate by comparison with what the neighbors are offering.

[thesultanofsheight]

Thanks for the explanation.

 

If I were to opt to put my savings in a bank in Ireland then any income would be taxed at 20% at source. But the rates seem pretty good. It starts to look like quite a good deal for the moment.

 

The IOM deposit guarantee scheme seems a bit inadequate by comparison with what the neighbors are offering.

 

Well before you do consider that Bradford & Bingley may be nationalised tomorrow. If so you can trot down to Ridgeway Street and deposit your stash in a subsidiary of a UK government owned bank. The IOM compensation scheme would still only apply but would the UK government ever let an offshore subsidiary of a nationalised bank fail?

[pongo]

would the UK government ever let an offshore subsidiary of a nationalised bank fail?

 

That is an interesting question. I think (or can imagine) that the time could/might come when it would be politically difficult for a UK govt to be seen to be using UK tax payer's money to support offshore savers.

 

White van man, The Daily Mail etc might not like it.

[thesultanofsheight]

would the UK government ever let an offshore subsidiary of a nationalised bank fail?

 

That is an interesting question. I think (or can imagine) that the time could/might come when it would be politically difficult for a UK govt to be seen to be using UK tax payer's money to support offshore savers.

 

The reality is that they need offshore savers more than ever. British savers have no further money to pile into the banks, so they're going to have to rely more on the wealthier offshore savers working in booming economies like the Middle East to pump money into their UK business through places like the IOM (and Northern Rock in Guernsey). They might just then understand what offshore deposit taking is all about, rather than assuming its all about dodgy planning and not paying tax.

[andrew00]

Very useful thread - thanks for prior contributions.

 

I have an account with Irish Perm IOM. When I opened it, they *claimed* it was fully backed by the Irish parent company. Today's announcement by the Irish gov't suggests the parent is unlikely to fail (at least for now). But do you think I can rely on the subsidiary's claim? ie. do you think the parent could/would let the subsidiary fail on its own? I can well imagine the latter's own mortgage book is just as bad as the parent's (although I can only guess). But then the parent's reputation would look very sour if it didn't bail out its own subsidiary.

 

BTW. In these unprecedented times, the Island's own g'tee scheme ("DCS") looks pretty much useless:

- claim 75% of max £20k = £15k (per person)

- but even this you probably wouldn't see for years and years

 

Thanks, Andrew

[pongo]

On another thread - Mutley has just noted that the Irish Govt scheme covers the Irish banks here.

 

See: http://www.angloirishbank.co.im/ for details.

[Snaipyr]

BTW. In these unprecedented times, the Island's own g'tee scheme ("DCS") looks pretty much useless:

- claim 75% of max £20k = £15k (per person)

- but even this you probably wouldn't see for years and years

 

Thanks, Andrew

 

It's insulting to depositors here considering Ireland's is 100,000 euro and the UK's is being raised to £40K (at least I think that's what I heard on some news or other today).

 

What will it take for the IOM Govt to raise it from £15,000?

[triskelion]

Why should depositing be risk free?

[Gladys]

If that is your attitude then the whole sector should be de-regulated and back we go to the early 80's or even worse.

 

Nothing is risk free, but the economy needs a banking sector which is stable, dependable and relatively risk free.

[WTF]

Nothing is risk free, but the economy needs a banking sector which is stable, dependable and relatively risk free.

 

why?? the government could serve the function of banks for capital projects and industry. and then for the masses you only get what you earn without the promise of this or that interest. if you want to gamble, fine, hit the bookies. but you shouldn't be told to save your money in the bank on a few percent interest only to have the bank liquidate and effectively rob you. banks are still a gamble, but not one you realise you are taking.