Where to deposit €70k

S

spinal_tap

Registered User
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Hi, just looking for advice on where to put 70k on deposit.

I've already decided on €30k in Rabo (10, 10 and 10 in mine, Mrs T's and jont accounts), but where should we put the balance. Would be keeping it in place for at least two years, and not interested in looking at the markets.

Are all the 5% products (NIB, AIB) pretty much the same?
 
Have you had a look at the relevant thread in the Best Buys forum? Was it any use?

I'm not sure I'd recommend putting money on deposit with Northern Rock at the moment!
 
yeah, all the accounts are pretty much the same

just put the rest into the rabo accounts
(you are 30k at max 5% anyway)

the gains you get by searching and opening other savings accounts
marketed as "best rate" are negligible

turn down your thermostat,
switch off your lights
and dont rev your car as much

JR
 
JR Rizzo said:
yeah, all the accounts are pretty much the same

just put the rest into the rabo accounts
(you are 30k at max 5% anyway)

the gains you get by searching and opening other savings accounts
marketed as "best rate" are negligible

turn down your thermostat,
switch off your lights
and dont rev your car as much

JR
Click to expand...

If he puts it all in Rabo, he will be earning 3.5% on 40,000 euro. It is worth shopping around for that amount of money. Plenty of offers around the 5% mark. Maybe you just don't need the money as much as the rest of us!!
 
You may want to check Irish Nationwide FlexiSaver 21 (issue2).

Just launched, available until Jan 31.

21 Day Notice, minimum 20k.

For balances between 20k and 50k pays ECB+0.6 (until 30-04-08), ECB+0.4 (01-05-08 until 30-09-08) and ECB+0.25 (01-10-08 until 31-12-08).

Regards,
Butch
 
You have 30K with rabo @ 5%. I would open accounts for myself and Mrs with First Active E-savings - 14K each @5.22%. I would open accounts for myself and Mrs with new AIB 7 day E-savings - 6K each @ 5%. You now have 42K on deposit @ 5% and 28K on deposit @ 5.22%.
 
Why not just put the lot in Anglo Irish Bank and save all that hassle, and administration. After moving some money from NR to Anglo i found them to be the most efficient bank i ever dealt with.
None of this mickey mouse banding nonsense.
30 day notice 4.5%
3 month term 4.77%
6 month term 4.75%
1 year term 4.76%
2 year term 9.75%
 
Given the recent Northern Rock scare, I would not leave more than 20k with any financial institution.

If a financial institution goes bust, you'll get a max of about 20k back, via the state.

Therefore, 70k would indicate at least four different accounts. Also, more than 10k in many account earns a lower rate.

Don't keep all you eggs in the same basket.

Personally, the baskets I use are Rabo, First Active, Ulster Bank and Anglo, with a little debris in Northern Rock.
 
Gautama said:
Given the recent Northern Rock scare, I would not leave more than 20k with any financial institution.
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As mentioned several times already NR deposits are fully guaranteed and the UK compensation guarantees much more than €20K normally anyway (c. €45K?).
 
If it's of any interest to the OP, I re-deposited funds with N.R. having withdrawn when the scare occurred. I am confident that savings in NR are fully guaranteed and are in excess of Irish Banks' guarantees. I shall reconsider when the rates in the banks are announced for 2008.

As a matter of interest there was an interview with someone representing Richard Branson on RTE Radio on Wed/Thurs which suggested that a sale might be on the way to RB. I think she said he was ready to pay ~ 15 Billion of the debt to the B of E. Also, some time ago one of the Irish financial experts here wrote that NR was probably the safest bank at present. As everyone knows the only certainties are death and taxes!
 
ClubMan said:
As mentioned several times already NR deposits are fully guaranteed and the UK compensation guarantees much more than €20K normally anyway (c. €45K?).
Click to expand...

True, but does this not apply to the Northern Rock scare of Autumn 2007 only?
Many of the British public are not happy that their taxpayers' money has been used to bail-out a floundering private business. I'm sure they are less happier still that the bail-out is to protect non-British investors.

Browne and Darling were on the crest of a policial wave when this Northern Rock scare happened. They could do nothing wrong. But a week is a long time in politics and their popularity has dropped immensely. Should Northern Rock enter difficulties again (or another UK finincial institution) I don't think they will be quiet as flaithuil with their potetial voters' money.

Anyway, Northern Rock is tarnished, this episode can only be seen as a disaster for them, right or wrong.
 
Gautama said:
True, but does this not apply to the Northern Rock scare of Autumn 2007 only?
Click to expand...
The full guarantee yes. But the normal UK depositor compensation scheme covers over twice the amount that the Irish one does as a matter of course.
 
Thanks for replies.

WRT the rabo acounts, should 10k be lodged into each a/c, or just under the 10k mark due to interest accruing, or does it (interest) automatically get lodged to the account you nominate?
 
Rabo will pay 5% on €10K and 3.75% on just the balance over €10K. Not like, say, FA who pay 5.22% on balances up to €15K and then a lower rate on the full amount if you exceed €15K! So with Rabo even if you have €11K in the account you will still get 5% on the €10K and just 3.75% on the €1K amount above €10K.
 
Thanks Clubman.

Wonder if the Regulator has looked at the way F.A. are pimping their offering, which to me is deliberately misleading?
 
This is covered in other threads. I'm not so sure that it is misleading since they clarified matters [broken link removed]:
For deposits of €15,001 and above, the gross rate of 4.33% AER will be applied to the whole balance.
Click to expand...
On the other hand other threads suggest that the rule in practice is actually that the lower rate applies once the balance reaches or exceeds €15,000 (or maybe €15,000.01?). If you are concerned then why not make a query/complaint to IFSRA?
 
ClubMan said:
Rabo will pay 5% on €10K and 3.75% on just the balance over €10K. Not like, say, FA who pay 5.22% on balances up to €15K and then a lower rate on the full amount if you exceed €15K! So with Rabo even if you have €11K in the account you will still get 5% on the €10K and just 3.75% on the €1K amount above €10K.
Click to expand...

Reading the small print you'll see rabo 5% offer is only until 31/12/2007 at which point it goes back to 3.75%. Does this apply to existing accounts or does it only apply to new accounts opened after 31/12/2007?
 
Rabo also give decent term deposits - though not as good as Anglo.

It's comforting to have instant access to funds, but often not necessary for the entire amount of savings. The one month rate is quite attractive and once the term is over you could put the money back in again if there was still no need for it.

From [broken link removed]

(As will be mentioned in the post Clubman is about to make, these are annualized rates.)

1 month 4.50%
3 months 4.52%
6 months 4.33%
1 year 4.28%
2 years 4.32%
3 years 4.31%
4 years 4.33%
5 years 4.36%
 
Your post is a little misleading and may suggest to some people that they get 4.5% after one month etc. rather than those rates being the annualised CAR return!
 
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