# Now Might Be A Good Time to Lock at 3.06%



## Lightning (2 Feb 2013)

Deposit rates have, unfortunately, been dropping for the last 10 months or so. The trend has continued into 2013. One provider, who has not recently adjusted their rates, is PTSB. 

The below account stands out from the crowd with the rate offered. 

If I was to guess, I would say that the 3.06% AER might not be offered for much longer. It might be worth getting this rate while it still lasts. 



> *Permanent TSB: Interest First Savings Account*
> 
> 1 Year *3.06%* ***Highest 1 year Rate***
> Minimum: €10,000.
> ...


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## seantheman (2 Feb 2013)

Ciaran, are you allowed to have more than one interest first account?


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## Lightning (2 Feb 2013)

Yes, you can have more than one account.


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## STEINER (2 Feb 2013)

I told my wife about this and she has applied online today.

In December she tried to open a PTSB interest first account but gave up after applying online and visiting PTSB in person with ID etc etc

They wanted proof of address, passport etc.  This was despite her details being with PTSB already for our mortgage account and other PTSB accounts.  She brought ID and proof of address to the PTSB branch where they were photocopied.  A week later, PTSB rang looking for her to bring it all in again, they had no record of her ID etc etc  Then they were querying her married name.  She gave up.  This was for a 15k amount.  Maybe they will get it right with this attempt.


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## digweed (7 Feb 2013)

STEINER said:


> I told my wife about this and she has applied online today.
> 
> They wanted proof of address, passport etc.  This was despite her details being with PTSB already for our mortgage account and other PTSB accounts.  She brought ID and proof of address to the PTSB branch where they were photocopied.



I applied for this account recently too. They wanted the same details, even though I was already a PTSB customer. I asked why, they said it was due to regulations that they need to update the proof of address and documents every 2 years. They said I didn't need to go into the branch though, I can post in actual copies of 2 household bills or documents with my address on them + photocopies of both my passport and driving licence. 

digweed


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## BerryBomb (24 Mar 2013)

My girlfriend was in a branch on Friday (22nd) to open one of these acccounts.  The person dealing with her said that the rates are due to change next Thursday (28th)


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## Marc (24 Mar 2013)

Don't forget one of the reasons why Permanent TSB is offering high interest rates is because it HAS to attract deposits.

The market for saver's money around the world provides an excellent objective guide to the relative security of various banks through the interest rates that they have to pay to savers.

Equally, outside of the ELG, long term senior debt issued by Permanent TSB is rated B+ by Standard & Poors. That is below investment grade and described as "highly speculative".

These should register as a flag to savers who need to be aware that there is "no smoke without fire" and risk and expected returns go hand in hand in the investment world.

For the avoidance of doubt, despite what is currently happening in Cyprus, I am not suggesting that most savers with PTSB are at risk as the vasy majority of savers have less than €100k with any one banking institution. 

But, anyone considering deposits with PTSB should be aware that especially once the ELG comes to an end, deposits in excess of €100,000 may be subject to some risk.


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## Lightning (24 Mar 2013)

Absolutely, PTSB are paying the highest rates because they need to. PTSB are in the worst shape of all Irish banks. 

The PTSB survival plan has STILL not be approved by the EC. There is no clear plan if the EC do not approve the plan, however, one would think that the EC will approve the plan. 

PTSB have the worst loans to deposits ratio of all domestic Irish banks. PTSB also have significant emergency funding from the ECB and CBI. 

The PTSB results from H1 2012 revealed huge unsustainable losses. The H2 2012 results will be probably much the same. PTSB are arguably the most exposed to the mortgage crisis as well. 

Also, PTSB had to enter into funding agreements, earlier in the year, to avoid running out of cash.  

On the flip side, PTSB are more focused on online banking products that their peers. PTSB is well capitalised. PTSB appears to be now well regulated. Also, PTSB has downsized their branch network, as banking moves gradually online, at a faster pace, than their peers. 



BerryBomb said:


> My girlfriend was in a branch on Friday (22nd) to open one of these acccounts.  The person dealing with her said that the rates are due to change next Thursday (28th)



Thanks for posting this. Hence, depositors have a few days to bag 3.00% to 3.06% before rates change. 

It is highly surprising that PTSB are changing rates on the same day that the ELG ends. Surely, the end of the ELG, is a big risk to PTSB and they will want as smooth a transition to the post ELG world as possible.


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## Marc (24 Mar 2013)

One possibility that should not be ruled out is that PTSB may be planning to RAISE rates when the ELG ends


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## Lightning (24 Mar 2013)

Marc said:


> One possibility that should not be ruled out is that PTSB may be planning to RAISE rates when the ELG ends



Ha! PTSB already have the highest 1 year term deposit rates, highest regular saver rates, highest children's account rates and are about to launch a current account with free banking that pays credit interest. 

Whilst I don't preclude the possibility, I would think it is rather remote.


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## oldnick (24 Mar 2013)

Judging by the interest rates,  as per Ciaran's excellent deposit reports, it seems that - other than this PTSB rate - it's hardly worth bothering with deposit accounts.

Even this "high" rate nets under 2% after DIRT/PRSI -and with most other accounts one is looking at not much over 1% nett. Two euros a week net deposit interest on €10.000 !

Considering one declares this to Revenue, and considering one may not get instant access to one's money, I believe we're coming to the time when it'll more advantageous to pay off a tracker loan than keep money in a bank.


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## Oracle24 (26 Mar 2013)

The PTSB rate of 3.06% is being reduced from Friday


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## serotoninsid (26 Mar 2013)

oldnick said:


> I believe we're coming to the time when it'll more advantageous to pay off a tracker loan than keep money in a bank.


Has it just come about this way - or has this been premeditated by the banks i.e. to create the circumstances whereby its pointless holding cash back from tracker home loans?


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## monagt (26 Mar 2013)

> Has it just come about this way - or has this been premeditated by the banks i.e. to create the circumstances whereby its pointless holding cash back from tracker home loans?



Has any one done the break even on this? Keep on deposit or pay off tracker.
Net Deposit vs Tracker ?? %


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## Lightning (26 Mar 2013)

Oracle24 said:


> The PTSB rate of 3.06% is being reduced from Friday



There goes the 4th report I have heard about new Permo rates this week. Must be true. 2 days left to bag these rates so. 

PTSB revealed their results for 2012 today. 1 billion loss, 191% loan to deposit ratio, growing arrears.


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## oldnick (26 Mar 2013)

RE DEPOSIT V. TRACKER

Assuming that one pays PRSI on deposit rates -and if one is on self-assessment it'll be hard to avoid - then one loses ca. 40% of the 3% bank deposit, leaving 1.8% nett -almost touching the tracker rate.

But that's based on the  soon-to-end top bank rate of 3%. Generally, I reckon most people are (or very shortly will be ) earning less on even the best deposit rate than the tracker rate.

Ciaran is the only person who can state categorically if it's worth putting money on deposit for anyone paying any type of loan -even trackers.
I'd be surprised if he says it is.


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## monagt (26 Mar 2013)

> Ciaran is the only person who can state categorically if it's worth putting money on deposit for anyone paying any type of loan -even trackers.
> I'd be surprised if he says it is.



Interesting question, needs to be done for different tracker rates and tax rates.......break even is the figure.....
Need to be less as you lose the Opportunity Cost when you used liquid cash to pay of a mortgage.


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## oldnick (27 Mar 2013)

Yes, there is an opportunity cost in getting rid of cash which you may need for an emergency - and that's the main reason my wife insists that we keep (too much in my opinion) cash in the bank rather than repay loans.
And she insists it must be current or quick withdrawal-without-penalty deposit accounts !
She keeps looking at the news from Cyprus and now wonders if we should dig a hole in the garden to store our money.
"We should have got gold " she keeps saying. She would. She's from India.


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## Lightning (27 Mar 2013)

With regard to whether is it is worth paying off your tracker or savings instead, I suggest anyone interested should read Brendan's key post on the topic. There are a large number of factors to consider.


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## caoimhe (28 Mar 2013)

I was informed yesterday in my local branch that the rate will be dropping by 0.36% over the weekend.


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## oldnick (28 Mar 2013)

Yes -studied Brendan's key post, looked at latest rates and can't see any point in keeping money on deposit (assuming one is liable to DIRT/PRSI) rather than pay off tracker.

Good idea to double -check bank allows one to take "a payment holiday" if one has paid lump sum ahead, but later finds need for some urgent cash.


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## Lightning (30 Mar 2013)

Still no sign of the new PTSB rates that multiple people said would come into force as at yesterday. 

The 3.00% Online Fixed Term rate is still available online today. 

Probably just a case of timing. Maybe, PTSB are now waiting until Tuesday to adjust their rates.


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## Lightning (2 Apr 2013)

Bizarre. 

After PTSB letting the world know that they were going to reduce rates last Thursday/Friday ... nothing happened. Again today, the rates are the same on the PTSB website. 

I wonder did PTSB have a change in heart or will we see the rate change in the coming days.


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## Sue Ellen (2 Apr 2013)

CiaranT said:


> Bizarre.



They're watching you [broken link removed]


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## Firefly (3 Apr 2013)

CiaranT said:


> Bizarre.
> 
> After PTSB letting the world know that they were going to reduce rates last Thursday/Friday ... nothing happened. Again today, the rates are the same on the PTSB website.
> 
> I wonder did PTSB have a change in heart or will we see the rate change in the coming days.



Saying one thing and doing another - that fits nicely with their current "Back to basics" advertising campaign then


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## Brantford (3 Apr 2013)

*Permanent TSB*

The deposit interest rate of 3.06% offered by Permantent TSB ends tomorrow.  I understand the new rate will be 2.65%


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## Gervan (3 Apr 2013)

Interest first for 12 months on €10,000 or more reads 2.7%

12 month online savings 2.65% for €5,000 and more


https://www.permanenttsb.ie/media/p...ates/permanent-tsb-Deposit-Interest-Rates.pdf


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## Lightning (3 Apr 2013)

Thanks Gervan, best buys updated.

Goodbye 3%+ fixed deposit rates for personal accounts.


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