Irish banks are in serious financial trouble and so could the more than 2 million UK consumers who save with them. Ireland’s three largest banks, Bank of Ireland, Allied Irish Bank, and Anglo Irish Bank are holding billions of pounds of UK money.
If the EU will not provide a bail out, some of these three Irish banks could balance on the edge of insolvency. If you have money in any of these banks it is important to know how much of it is protected and how much you might be able to rescue.
Because of its strong affiliation with the UK Post Office and its UK subsidiary, savers with The Bank of Ireland have some protection under the Financial Services Compensation Scheme. The UK based scheme protects up to £50,000 per saver. So, savers holding a joint account would benefit for as much as £100,000. This scheme, however, protects just a single plan. Therefore, if you have two different accounts with the Bank of Ireland, you would have protection for just one, up to £50,000.
If you have money in any of the other Irish banks, you would have no other choice than to claim under the Irish Compensation Scheme, and that gets sticky. Only certain types of accounts are protected under the Irish Scheme. Most instant access accounts should be covered to 100.000 Euros, while long-term deposits might not be covered at all.
If you are considering switching your funds from an Irish bank to a UK bank, talk to a financial professional to find out just how much risk your savings are currently under.