How much is safe in a current account?

PERSONAL FINANCE:Your queries answered

Q

My husband and I will be returning from abroad to live in Ireland in the near future. We told our bank manager we would be lodging in excess of €200,000 and wanted to open a temporary deposit account but would then be shopping around for best rates.

He said we need not bother – just to put it into our current account until we had decided how to invest it.

I would like your advice on this. I believe that up to €200,000 would be guaranteed only in a joint deposit account. And what about money in our current account? How much of that would be guaranteed? I am baffled by our Irish bank manager’s advice. Surely we should take the safe option, even on a temporary basis?

- Ms MD, email

A

It’s all a question of security. Your bank manager is right, at least until the end of December because there is currently an absolute guarantee on bank deposits. However, at that point, unless there is a further extension, the situation will revert to the underlying deposit protection scheme coverage. This is the scheme that covers the first €100,000 held in any institution (€200,000 in the case of joint accounts).

As far as which type of account the money needs to be in, my understanding is that the deposit protection scheme covers any money held on account in a given bank. It will not matter whether it is lodged in a deposit or a savings account.

Clearly, however, you are unlikely to receive any interest on a current account. Therefore, it makes sense to scout out deposit account options. As far as I am aware, the 30-day An Post account, offering 3 per cent, is among the best on the market and certainly very secure. Anything in An Post is fully guaranteed – even over and above the limits of the deposit protection scheme.

If you are coming home imminently, the bank manager’s advice is fair enough – put the money in an existing account while you settle and review your options. But don’t dally.

Do I need legal representation?

Q

Do I need a solicitor to appear at the Employee Appeals Tribunal? In addition, if I have a barrister to represent me do I also need a solicitor?

- Mr AF, email

A

You do not need a solicitor to appear before the Employee Appeals Tribunal although it may well be advisable to have one.

According to the tribunal’s own website, you may appear and be heard by the tribunal by yourself. Alternatively, you may choose to be represented by counsel or solicitor or by a representative of a trade union or of an employers’ organisation, or with the permission of the tribunal, by any other person.

* Last week, a reader asked whether anyone was taking pre-euro coinage, even though central banks in some countries will no longer exchange it for "new" money. I said I would come back to it if any details emerged. A number of agencies have been in touch. They include Concern (concern.ie) and the Irish Society for Autism (autism.ie). Concern tells me it accepts foreign coins or notes from any country.

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into. Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@ irishtimes.com