Huge Increase in BoI 2 Year Term Rate - 4.50%

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BoI are now paying an average rate of 4.50% on a 2 year term deposit.

Year 1 - 3.00% AER.
Year 2 - 6.00% AER.
Average - 4.50%.

Minimum: 20,000 EUR.
Maxmium: 1,000,000 EUR.

Source: Advert in today's Indo

BoI are clearly in dire need of deposits if they are now paying these rates.
 
Thanks - just joined...looking at home for Tracker cash... Looked at your other listing...& this new one seems like a very good option...9% over two years...& option to get out after one year if needed...hard to beat? An Post is 10%, but 3-years not 2...& I think rates may be higher by then?
 
I'm coming home to Ireland in April for a holiday & fully intend to pull all my deposits out of all Irish institutions.

I simply won't risk it any longer than I must.
 
Money is never "locked away" State Savings products are

Money saved in any of the State Savings products is never "locked away".

Irrespetive of the original term you can always ask for some or all of your money back at any time subhject to 7 days notice. There is no penalty or deduction whatsoever.

see page 3 of NTMA brochure 1 at www statesavings home page


Can I have my money back at any time without
penalty?*
Yes, you can request some or all of your money back at any time subject to 7 days notice*.​

There is no penalty or deduction whatsoever.​


You can request, at any time, full or part payment of your original amount (principal). This will be repaid to you with any interest or bonus payments that are due.​


* State Savings™ products may be cashed in at any time subject to a 7 day notice period for withdrawal with the exception of

(a)Deposit Account Plus - a 30 day notice period before withdrawal

(b)Prize Bonds - no repayment until 3 months after purchase.​

This early repayment option without penalty applies to all State Savings™ products.​
 
Chris said:
I would say not. 4.5% interest to lend to an effectively bankrupt organisation is not a good deal.
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Does it make any difference which bank they are in if "something goes wrong". We are covered by the 100,000 euro guarantee. If the worst was to happen A) The govt was to raid deposits or B) Ireland was forced out of Euro,money in foreign owned banks registered in Ireland such as Rabo or NR., wouldnt deposits be affected in the same way as BoI or AIB
 
Don't you think it would be nice to put your money in Aib and boi to help pay the redundancy to those who will be let go. After all remember how well these people looked after you over the years.
 
onlyonpaper said:
Does it make any difference which bank they are in if "something goes wrong". We are covered by the 100,000 euro guarantee. If the worst was to happen A) The govt was to raid deposits or B) Ireland was forced out of Euro,money in foreign owned banks registered in Ireland such as Rabo or NR., wouldnt deposits be affected in the same way as BoI or AIB
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Very good points, which is why I have very little money left in Ireland. I don't think the government would be able to stand up to even a €100,000 guarantee, and if deposits were confiscated or exchanged into a new currency then it is not certain what would happen with deposits on foreign owned banks within the country. There have been comments on other threads where people have asked Rabo to confirm what would happen in such a scenario, and they were unable to say for sure.
 
onlyonpaper said:
Does it make any difference which bank they are in if "something goes wrong". We are covered by the 100,000 euro guarantee. If the worst was to happen A) The govt was to raid deposits or B) Ireland was forced out of Euro,money in foreign owned banks registered in Ireland such as Rabo or NR., wouldnt deposits be affected in the same way as BoI or AIB
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It does make a difference as to where you deposits are if the irish state or Irish banks default in the future.
 
It does make a difference as to where you deposits are if the irish state or Irish banks default in the future.
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Hi Ciaran, In what way does it make a difference or is it that deposits held in Ulster Bank, Rabo, Nationwide Uk are covered by the British Gurantee?

Do you know if we are any safer holding our deposits in these foreign banks if Ireland was to leave the euro?

Thanks
 
Bigmc said:
Hi Ciaran, In what way does it make a difference or is it that deposits held in Ulster Bank, Rabo, Nationwide Uk are covered by the British Gurantee?
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There are risks to deposits, in all banks operating in Ireland, if we leave the euro.

The FSA/British guarantee is simply far more likely to be able to pay out compensation than the Irish state, making UK banks 'safer'.
 
will other banks raise there fixed rates like BOI

do you see other banks putting up rates in there fixed terms savings accounts
 
mcriot29 said:
do you see other banks putting up rates in there fixed terms savings accounts
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If ECB rates start increasing, then yes. Fixed term deposits were up to 6.5% AER before ECB started decreasing base rates.

I would guess that PTSB & Ulster may start price matching or near price matching the fixed rate increases shortly. Investec will have to do something about their increasingly uncompetitive fixed term rates.
 
Ok!! Was just about to open up a 2 yr fixed deposit account with BoI for their new 4.5% rate, totally in 2 minds now!!!! Thinking maybe I should select a British bank then??

Anyone got any advice? Should I go for Ulster bank or Nationwide UK as opposed to BoI or EBS
 
For what its worth id go for the english owned banks, Ulster paying 3.5% for 12 month term & Nationwide uk payin 3.65% for 12 month term
 
Chris said:
Very good points, which is why I have very little money left in Ireland. I don't think the government would be able to stand up to even a €100,000 guarantee, and if deposits were confiscated or exchanged into a new currency then it is not certain what would happen with deposits on foreign owned banks within the country. There have been comments on other threads where people have asked Rabo to confirm what would happen in such a scenario, and they were unable to say for sure.
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If the currency was in sterling that would be good for savers as sterling is very strong at present.:rolleyes:
 
Kev said:
If the currency was in sterling that would be good for savers as sterling is very strong at present.:rolleyes:
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sterling is very weak at present , the euro is very strong although it has slipped a bit in the last week thought not against sterling or the dollar
 
farmerette said:
sterling is very weak at present , the euro is very strong although it has slipped a bit in the last week thought not against sterling or the dollar
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Strling does not seem to be weak when you try to exchange the euro to it.
 
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