Tuesday 6 December 2016

Savers told they won't lose in new homes for deposits

Charlie Weston Personal Finance Editor

Published 25/02/2011 | 05:00

€3.6bn of Irish Nationwide deposits have been moved to Permanent TSB. Photo: PA
€3.6bn of Irish Nationwide deposits have been moved to Permanent TSB. Photo: PA

SAVERS who have money in Anglo Irish Bank and Irish Nationwide Building Society (INBS) were assured last night that they would not lose out with the transfer of the deposits out of two institutions.

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AIB is taking over €8.6bn of deposits from Anglo Irish, with Permanent TSB taking €3.6bn of deposits from Irish Nationwide Building Society.

The two acquiring banks promised to maintain the terms and conditions, maturity dates and interest rates on the deposit accounts they have bought.

The same commitment was given by the Department of Finance and the Central Bank.

AIB said it would be acquiring 120,000 customers from Anglo, and insisted depositors could continue to have full access to their money, either by going into Anglo Irish Bank, or through AIB.

"Deposits have been transferred in a seamless manner to AIB, with no immediate operational impact on customers. Depositors continue to have full access to their funds in the same way as heretofore," AIB said.

Permanent TSB said it was taking over 160,000, mainly retail, deposits from Irish Nationwide. It said it would honour the terms and conditions of the savings accounts that had been placed with it.

Branches

Until the transfer is completed people with deposits in Irish Nationwide can still access their money though the branches of that building society.

Finance Minister Brian Lenihan said: "No action is required to be taken by depositors following the making of the transfer orders by the High Court."

He said the position of depositors in both Anglo and Irish Nationwide remained fully secure following the transfer: "Customers of Anglo and Irish Nationwide Building Society should be reassured that their deposits remain protected under existing government guarantee arrangements."

The minister added that the transfer will have no impact on existing terms and conditions.

"Depositors continue to have access to their funds in the normal manner as they had under their arrangements with Anglo or INBS," Mr Lenihan added.

Yesterday's announcement has no effect on those who have a mortgage with Irish Nationwide.

However, Irish Nationwide was ordered by the High Court earlier this month to stop issuing new mortgages and to no longer accept applications for top-ups.

In a statement, the Central Bank said it noted the transfer of the deposit books and said that no action was required by depositors as a result of the transfers.

It said the Department of Finance has confirmed that depositors -- during and after the transfer -- will be protected under the Credit Institutions Eligible Liabilities Guarantee Scheme and the Deposit Protection Scheme.

There is more information available for Irish Nationwide customers at www.irishnationwide.ie, or telephone 1850 522522, while Anglo customers can telephone 1850 442222 or 0818 300182.

Irish Independent

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