I've a lump sum to reinvest. My current bank is offering 3.5% which appears to be the best offer on the market at the moment. I don't envisage I'll need the money in the medium future i.e. 3-5 years, so in light of the low deposit rate on offer at the moment I'm thinking of putting it into An Post savings bonds - 3 or 5.5 years. It gives a guaranteed return of 10% and 21% respectively (DIRT free) therefore equivalent to 4.3% and 4.7%.
Question is - what's the general concensus with regards to the trend of deposit interest rates over the next 3 to 5 years?
I'm thinking rates are so low at the moment that they will inevitably rise over this period especially as the main ECB rate is almost certainly going to increase in the short to medium term - but when and by how much is the thing - or is this a real crystal ball question?
I hear this morning BOI have indicated loan rates will rise but deposit rates will fall due to the need to recapitalise the bank - it could be the start of a downward trend across all banks.
Question is - what's the general concensus with regards to the trend of deposit interest rates over the next 3 to 5 years?
I'm thinking rates are so low at the moment that they will inevitably rise over this period especially as the main ECB rate is almost certainly going to increase in the short to medium term - but when and by how much is the thing - or is this a real crystal ball question?
I hear this morning BOI have indicated loan rates will rise but deposit rates will fall due to the need to recapitalise the bank - it could be the start of a downward trend across all banks.