Non-sterling savings (how to avoid hyperinflation)

gozomark

I believe Anglo Irish (IOM) is only open to non-UK residents, but happy to be corrected

gunnaknow

Yes, you're right. I just noticed that in bold at the bottom of the link.

mike_the_bike_2

Looks like the Nationwide Euro accounts are somehow tied into the Isle of Man..Just reading the small print the Isle of man appears to be still only offering 75% of up to 15k in the event of the company going belly up.

gunnaknow

I recommend that you read this.

http://www.gov.im/fsc/investor/dep_comp.xml
http://www.gov.im/lib/docs/fsc/PressReleases/deposittakersinthedcs.pdf


Here are a couple of other decent euro savings rates.
http://www.irishpermanentintl.com/deposit/interestratesnotice.php
http://www.irishpermanentintl.com/deposit/bondrates.php

Charles1968

gunnaknow wrote: »

These are the best rates for euro savings accounts that I have been able to find. I think that only the first 20,000 euros is covered with Advanzia, so bear that in mind.

http://www.angloirishbank.co.im/Personal_Savings/index.htm
http://www.advanziakonto.com/en/index.php

Advanzia looks good.

Charles1968

gunnaknow wrote: »

These are the best rates for euro savings accounts that I have been able to find. I think that only the first 20,000 euros is covered with Advanzia, so bear that in mind.

http://www.angloirishbank.co.im/Personal_Savings/index.htm
http://www.advanziakonto.com/en/index.php

The 20,000 Euro protection offered by Advanzia through Luxembourg's banks is being raised to 100,000 on 1st Jan. Advanzia tell me there is very little risk of bank collapse as they don't offer mortgages and only lend on their deposits. A bit of further investigation probably needed, but this looks like a great deal at the moment, and 6% interest can't be beaten in the UK.

soulsaver

mike_the_bike wrote: »

Looks like the Nationwide Euro accounts are somehow tied into the Isle of Man..Just reading the small print the Isle of man appears to be still only offering 75% of up to 15k in the event of the company going belly up.

The 'DCS' is the IoM depositor compensation scheme and has recently uplifted to £50k coverage per individual - however there is some concern whether another* collapse would protract the payout over many years in installments. It's not prefunded, but levied on the IoM regulated financial institutions in the event of a 'default'. The levy has annual limits pro rata to the size of the partaking IoM institutions; so if called upon in a major collapse it could take years to fund the compensation.
So if this element is important to you, do your own research to decide your attitude to the risks.

*Kaupthing S & F IoM is in process with no payout as yet.

soulsaver

Charles1968 wrote: »

The 20,000 Euro protection offered by Advanzia through Luxembourg's banks is being raised to 100,000 on 1st Jan. Advanzia tell me there is very little risk of bank collapse as they don't offer mortgages and only lend on their deposits. A bit of further investigation probably needed, but this looks like a great deal at the moment, and 6% interest can't be beaten in the UK.

In the FAQ it states Luxembourg insurance coverage up to 50000 euro now:
Deposit insurance?

Deposits at Advanzia Bank S.A. are covered by the Luxembourg deposit insurance scheme (AGDL). The EU finance ministers have decided that the deposit guarantee will be EUR 50.000 per Person.

Charles1968

soulsaver wrote: »

In the FAQ it states Luxembourg insurance coverage up to 50000 euro now:
Deposit insurance?

Deposits at Advanzia Bank S.A. are covered by the Luxembourg deposit insurance scheme (AGDL). The EU finance ministers have decided that the deposit guarantee will be EUR 50.000 per Person.

Yes you're right that Advanzia is covered by the Luxembourg deposit scheme, but the chap I spoke to on the phone when ringing Advanzia a few minutes ago told me the limit is being raised to EUR 100,000 on 1st January.

The advantage of moving a large sum is that you get a better exchange rate. I'd probably deposit EUR 90,000 to leave room for interest. Quick back of an envelope calculation after speaking to First Direct suggests I'd lose only a £25 fee charged by FD and then around £250 lost through the exchange rate. Advanzia don't charge any fees for transactions.

It all seems remarkably straightforward. Open the advanzia account online, then simply ring First Direct and wire the money over. They tell me the German and Luxembourg banks are very efficient, so the money will be earning interest within 2-3 days.

gunnaknow

Blimey Charles, you move fast! I only pasted the link a few hours ago and you've already been on the phone to Advanzia and your bank to set everything up! For your information, Advanzia is a niche bank that was set up in 2005, owned mostly by a Norwegian investment company called Kistefos.

http://www.kistefos.no/private_equity/our_investments/advanzia/