Anglo Irish Bank

m567

Hello,
I am considering saving £13k with Anglo Irish Bank in the 1year fixed rate bond paying 7.05%.
Has anyone been with them over the past year?

regards,

derek.gtalk

I want to know the chance of AIB fails and the Irish government denies their promise of full payment.

gozomark

my view


chance of AIB fails - somewhat less than 10% (in the next 12 months)

chance the Irish government denies their promise of full payment (if called upon). - less than 1%

thus chance of AIB fails and the Irish government denies their promise of full payment - somewhat less than 0.1%

paddytrash

I would think the chances of Anglo failing are quite high. If I was giving odds on it I wouldnt give you 7/2

Having said that I've just taken out a couple of bonds with them

My rationale is that the Irish government will definitely save them.

If Allied Irish or Bank of Ireland failed in a big way, there is no way the Irish government could step in. They are just too big. The best the Irish government could do is provide short term liquidity to the banks, which so far they havent provided - just a massive poker bluff by saying they would guarantee everything, which so far has seemed to work.

Anglo are small fry.
If Anglo fails lets just hope they fail before one of the bigger ones.

gozomark wrote: »

my view


chance of AIB fails - somewhat less than 10% (in the next 12 months)

chance the Irish government denies their promise of full payment (if called upon). - less than 1%

thus chance of AIB fails and the Irish government denies their promise of full payment - somewhat less than 0.1%

Mini_Bear

I put 15k in last month. Deposits in Ireland are fully guaranteed by the Govt. Mine is also a one yr bond, 2 yr would definately be more risky if interest rates fall further. Im suprised this rate is still going as i thought i had leapt in at last minute for it.
My advise - grab it while you can, but i am a little biased!

Mini Bear

m567

>Mine is also a one yr bond, 2 yr would definately be more risky if interest >rates fall further

The further you think interest rates will go down, the more advantageous longer fixedrate bond will be, of course?

amistupid

I opened a postal and phone premier cash account with them 6 months ago at 6.55%. I have found their customer service excellent. I know the Police Mutual Assurance Society are using Anglo-Irish which is good enough recommendation for me after all who's gonna be brave enough to risk The Old Bill's hard earned savings!

isofa

They are currently rated A+ by Fitch. Still a lot can happen in 6-12 months.

Article re. how safe AIB are is here at This Money.

cos69

I think the 7.05% is not sufficient risk premium over somewhere like Birmingham Midshires6.86% fix for a year bond.

I am looking for a 2 year bond, do not want my money maturing when interest rates are several % points lower next year. Anglo Irish offer 7% but still weighing up the risks - main question for me is, will the European Bank bail them out if the Irish government falters.

Baldur

amistupid wrote: »

after all who's gonna be brave enough to risk The Old Bill's hard earned savings!

Icelandic banks certainly were
http://www.ftadviser.com/FTAdviser/Investments/News/article/20081009/378e8a1c-9600-11dd-8351-00144f2af8e8/Met-police-have-30m-deposited-in-Icelandic-banks.jsp

m567

boe just cut to 3%.... this should be done asap