Reinvest Irish Nationwide Bond

[permia]

Hi,

A year ago I opened a 20K 1 yr fixed rate interest bond with Irish Nationwide. It was partly to potentially qualify as a member in the event of de-mutualisation (how things have changed !!); membership requires another year. The bond is now maturing & I have the option to reinvest for another year at at 4% gross 4% AER.

A couple queries for advice please:
(i) Is there any possibility of demutualisation in the next few years, in other words is it worth pursuing membership ?

(ii) Irrespective of (i) should I take the 4% reinvestment rate anyway ?

(iii) Or are there better interest options available in the current low-interest environment ?

Many thanks for your great advice.

 

[RMCF]

Better deals out there for 20K at present.

Investec offering 5.5% pa for 6 months.

 

[Lightning]

A couple queries for advice please:
(i) Is there any possibility of demutualisation in the next few years, in other words is it worth pursuing membership ?

Highly unlikely. No.

(ii) Irrespective of (i) should I take the 4% reinvestment rate anyway ?

No. Shop around. You can get a better return for the money.

(iii) Or are there better interest options available in the current low-interest environment ?.

Yes. See http://www.askaboutmoney.com/showthread.php?t=101813

Best Buys - Highest Term Deposit Rates

6 Months - Investec - 5.58% (Discuss here) Expires March 31st 2009
1 Year - Anglo-Irish Bank - 5.25%

 

[oldtimer]

The rate for 1 year fixed year bond with Irish Nationwide is 4.65%, not 4%. If you do not wish to put in Anglo perhaps best to just continue at the good rate of 4.65%.

 

[permia]

Many thanks for your advice. I will look around & then decide.

 

[Lightning]

Good to see you have decided to shop around.

Keep in mind that rates on fixed term deposits are most likely about to drop .