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by BelenusMordred 1780 days ago
> keep a small emergency savings account (~10k EUR)

Hopefully you don't mean in a bank? If history is any guide that's useless with capital controls initiated before the public even gets whiff of it, see Greece and Cyprus 2008. A bolted-down safe in your house seems to be the caveat on such a statement. Money in the bank simply isn't yours and far too many people don't realise this.
4 comments
breakfastduck 1780 days ago
At least in the UK you are insured up to 80k, so keeping 10k in a bank is perfectly safe. You will not lose it if the bank crashes.

That advice you're giving there is actually kind of dangerous & misleading.

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WanderPanda 1780 days ago
I don't like these kind of "insurances". It is very probable that when multiple banks go belly-up this could lead to serious inflation. You will get your money back in nominal terms, but what will you be able to buy from it? I even think that we should somehow count these "insurance" to the central bank balance sheet. If shit hits the fan the cb will sure as hell monetise the government debt needed to guarantee these amounts.
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Traster 1780 days ago
A small emergency savings account isn't there to insulate you against a sovereign debt crisis. It's there to insulate you if you lose your job and need a few months to pay your mortgage while you find a new one.
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Uberphallus 1780 days ago
Most of Europe has enough unemployment benefits to get you by for more than a few months, though, sometimes years. It better stay invested.
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pjc50 1780 days ago
The Cyprus confiscation had a threshold which was much higher than your hypothetical 10k.

It's still wise to at least consider the possibility of a bank failure, qv Northern Rock.

Grandparent comment's advice about keeping an overseas investment is wise, too; as a Brit I've not regretted having US investments.

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throw0101a 1780 days ago
> It's still wise to at least consider the possibility of a bank failure, qv Northern Rock.

Most industrialized countries have insurance of bank deposits up to a certain point. So even if the bank goes poof your savings are still safe.

It would simply be prudent to have money in more than one bank (or credit union), as if something bad happens then things may get chaotic in the short term.

A second account also helps with IT problems:

* https://en.wikipedia.org/wiki/2012_RBS_Group_computer_system...

* https://www.theguardian.com/business/2019/aug/27/natwest-and...

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toomuchtodo 1780 days ago
If you're paranoid or live in a country where your risk tolerance dictates such a course of action, sure, keep notes on hand.
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