With another major bank set to become nationalised, savers are turning to our overseas neighbour to ensure their savings stay safe. The Irish government have backed all savings 100% which has lead to the Irish banks being swamped with calls to set new accounts up. The UK government have also expressed an interest in guaranteeing all deposits worth around £1.7 trillion.
With the uncertainty of UK banks in the current financial situation, it is no wonder savers are looking to deposit their funds elsewhere. The Irish banks are seen as the safest in Europe, making them a safe bet compared to the 'wobbly' UK banks.
Even though it is a safer bet for people investing their money, the government are keen to keep the money in the UK to strengthen the economy, but requests for setting up new accounts with the Irish banks have risen over the past few days.
With the US' economy falling further into trouble, the UK stock market had increased in an opposing reaction; shares in the troubled HBOS had risen by over 30%.
This move by the Irish banks will only confuse people as to where they should deposit their money; do they help the economy and invest their money in a possibly unstable bank or do they invest their money in an Irish bank?
The government currently guarantee up to £35,000 of personal savings which is currently under review to rise to £50,000.
When investing large amounts of money, be sure to take professional advice as all situations are different.
