The past few months have seen Ulster Bank announce their exit strategy from the Irish marketplace by early 2022.
Ulster Bank customers will be given six months’ notice to close their accounts and find a new provider from early next year. The bank said it was “encouraging customers to get ready” for changes coming in 2022 as part of its withdrawal from the Irish market. They also said they will contact customers directly when they need to take action, and this will commence in early 2022 when it plans to begin to serve formal account closure notice to current account and deposit account customers.
“In advance of this, Ulster Bank is encouraging customers to consider their options, avail of supports and get ready to choose a new banking provider, particularly for customers’ current and deposit accounts. The Bank says it we will engage with customers, to help them to get ready to choose a new provider, with a view to move and close their accounts.
However, if customers are ready now, the Bank is encouraging them to review their Ulster Bank accounts and choose a new provider. If no action is taken, customer accounts will be closed with a cheque issued for any remaining balance sometime next year.
What does this mean for your deposits with Ulster Bank?
There have been two key factors which have forced our clients to consider moving their medium to long term savings away from deposit accounts;
-Negative to non existent interest rates | This means that your money is actually diminishing in value by bank charges and no interest.
-Inflation | which is experiencing an unexpected jump caused by global factors. These factors should diminish in the short term, but inflation has returned to our lives. Your money must keep up with it somehow otherwise it will lose it purchasing power. Those of you under the age of 40 may not recall the impact of inflation, it can be damaging. What €100 can buy now as opposed to what a €100 could buy in 2000 is drastically different.
In 2022, Ulster Bank will be moving their deposit book to another Bank, the choice will be made for you by Ulster Bank as to who now houses your hard earned savings.
It is reasonable to look for a moderate growth in the value in your savings and investments, don’t let decisions about your money be made for you.
Seeking advice concerning Ulster Bank’s Irish exit
If you seek advice on your personal circumstances regarding Ulster Bank’s exit, ODM Financial Advisers is here to help you make good decisions about your money and pensions. You can contact us on 023 884 2700 or email info@nullodmfinancial.ie for more information regarding your savings options, financial planning, investment management, mortgage arrangements and more.
ODM Financial Advisers is regulated by the Central Bank of Ireland