# Why Investec & Anglo ?



## gInvestor (26 Feb 2009)

Guys, why is everybody suggesting Investec & Anglo when Ulster (RBS) and First Active are both offering 5.5%.. 

[broken link removed]

[broken link removed]

Have I missed something ?


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## WaterSprite (26 Feb 2009)

I'd imagine it's best lump sum rate (on demand) vs best regular saver?


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## gInvestor (26 Feb 2009)

OK, both links are for lump sum savings but am these can %'s can vary ? with the ECB rate ? 

Anglo and Investec are fixed term for 1 year so your getting that % regardless.. 

Someone in the bank almost had me !!


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## WaterSprite (26 Feb 2009)

Ah - I see what you mean.  Well, FA is now the same as UB so it's the same product.  Plus, there are restrictions/loss of interest if you withdraw within the period.  That said, it's not a bad product...


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## OPTIMUM (26 Feb 2009)

gInvestor - to answer your question, "everybody" is suggesting Investec and Anglo because 
1.they both offer the best fixed rates at a time when variable demand rates accounts are certain to be reduced.
2. the minimum on the accounts you mention is 15k - anglo is 1k, investec 1k i think
3. Ulster/FA offerings are e/online accounts - online only


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## Lightning (28 Feb 2009)

gInvestor said:


> Guys, why is everybody suggesting Investec & Anglo when Ulster (RBS) and First Active are both offering 5.5%..
> 
> [broken link removed]
> 
> ...



Why? 

Because of the terms and conditions that UB/FA attach to their products. 

See [broken link removed]



> interest will be lost in any month a withdrawal is made





> If a withdrawal is made in any of the first six months after the account has been open, only the bonus rate (0.50%) will be paid in that month.





> variable rate





> Rate bands €0-14,999 *Rate 0.01%*





> Minimum balance - €15,000



The headline rate is good but the small T&C's are not too everyones taste or financial interest.



OPTIMUM said:


> 2. the minimum on the accounts you mention is 15k - anglo is 1k, investec 1k i think



For Investec See [broken link removed]

The minimum with Investec is 20,000 EUR. There have been reports that they often waive that minimum.



> Minimum deposit amount €20,000



For Anglo Irish see [broken link removed]



> There is no minimum deposit


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## Guest124 (5 Mar 2009)

Why is the Anglo Irish Bank 30 day notice a/c only 3%, considering the fact you have to give 30 days notice as opposed to premium demand account of 4.75% or 4% depending on balance. It makes no sense -anyone? Surely it should be at least 4%?


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## Bobby1 (5 Mar 2009)

BroadbandKen said:


> Why is the Anglo Irish Bank 30 day notice a/c only 3%, considering the fact you have to give 30 days notice as opposed to premium demand account of 4.75% or 4% depending on balance. It makes no sense -anyone? Surely it should be at least 4%?


 
None of the rates on offer make sense! While ECB is about to be around 1.50% and the EURIBOR rates are all 2% or less for 3-12 months, banks are paying 4%,4.60%, 5.25%,5.50% for fixed terms!!!

While this is all good in the short term for savers, all we are doing is creating more damage to our banking system- who do you think is going to end up paying the shortfall for these massive rates banks are paying! Us the taxpayers.

What I mean in the shortfall is that surely if the market rates are 2.04% (EURIBOR 12 month rate yesterday) and Irish Nationwide are paying 4.65%, there is a difference in the rates of 2.61%, easy to see here that Irish Nationwide are making a loss on their deposits, and with this insitution fragile enough, and the frenzy between consumers to find the best savings rate not slowing down, its a scary thought to think were it will all end.

Article in todays Business Independent which highlights the madness of the rates on offer for mortgages and savings when compared to the market rates. Something has to give...


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## Lightning (5 Mar 2009)

Bobby1 said:


> None of the rates on offer make sense! While ECB is about to be around 1.50% and the EURIBOR rates are all 2% or less for 3-12 months, banks are paying 4%,4.60%, 5.25%,5.50% for fixed terms!!!



Using conventional measures your right. It makes zero sense. 

However, The assumption often made is that banks can borrow at EURIBOR rates which is not always the case. EURIBOR reflects to rates that a sample of banks borrow to each other. 

Take Investec for example they offer 5.58% on 6 months term deposits. This is 4.48% over ECB base rate. So how on earth are they making money? Why are they doing this when "banks borrow at EURIBOR" ? The answer would appear to be Investec can't borrow at EURIBOR because of market perception of risk of lending money to Investec. Also, there have been reports that Investec lend money to companies at higher rates but to companies that other banks won't lend to. 

Therefore, it is not fair to use EURIBOR or ECB base rates in isolation to determine/understand savings rates. They are important but the rate that the bank lends at and their need for deposits are also important factors.


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## Guest124 (5 Mar 2009)

Interesting stuff but by having to give 30 days notice why do Anglo Irish Bank only give 3%?


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## OPTIMUM (5 Mar 2009)

Many banks including AIB([broken link removed]) , PTSB ([broken link removed])  have old notice accounts which pay less than 2%.


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## Lightning (6 Mar 2009)

BroadbandKen said:


> Interesting stuff but by having to give 30 days notice why do Anglo Irish Bank only give 3%?



Why? Consumer ignorance and simply because they can. 

Many Irish banks have one product offering one lower rate and another similar product offering a higher rate. The lower rate is aimed at the less savvy saver and the higher rate is aimed at the more savvy saver who shops around.


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