Yesterday RaboDirect Plc started to write to it’s some 90,000 Irish deposit holders on its books to announce their plans to wind down their Irish operation. These letters follow a decision last year for the company to withdraw from offering it’s investment services to the Irish market. While this letter’s tone was courteous and polite, it gave no explanation for the decision to quite the Irish Market.
Today’s national newspapers estimated the total amount of funds on deposit with Rabo at €30 billion. I contacted the the Dutch arm of their operation via their internet chat service to see if it was possible for Irish customers to shift their savings accounts to the Netherlands. I was informed that it is not possible to open a Dutch bank account without having a valid Dutch Social Security number.
So where are these 90,000 customers going to go with their €30 billion?! Between interest rates being at record lows, and the high rate of government (DIRT) tax (37%), there isn’t a lot of choice. No doubt the vultures will be circling, ready to waste a small fortune in marketing budgets in an attempt to lure in this bounty!
Let me know directly here, or in the comments below if you know of any really secure banks that are paying out a decent rate of interest with flexible payment terms!