# 18 Month Reward Account - bank of ireland



## jack222 (24 Aug 2009)

Hi Guys,

I dont know much about money matters.

I have 40k which I wont need for a year or so, when I might buy a house.
Is this a good option to put the money in and leave for a year

[broken link removed]


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## jack222 (24 Aug 2009)

Sorry guys, maybe this too
[broken link removed]

That way I dont have to even commit for a year.
But if I was to leave 40k in this for a year how much would I get?


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## Bobby1 (24 Aug 2009)

If your looking for  year (ish) deposit there are 2 other insitutions offering 5% for 18 months so you should check them out.

EBS and PTSB- although the EBS offer is the only one i can see that offers 50% access as a feature, if you make a withdrawal from the BOI account they drop the rate from 5% to "a default rate" which is 1.65%! sneaky

Anglo have a 1 year at 3.80%- check them out its the highest rate in the market if you dont mind banking with them...


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## jack222 (24 Aug 2009)

Bobby1 said:


> If your looking for  year (ish) deposit there are 2 other insitutions offering 5% for 18 months so you should check them out.
> 
> EBS and PTSB- although the EBS offer is the only one i can see that offers 50% access as a feature, if you make a withdrawal from the BOI account they drop the rate from 5% to "a default rate" which is 1.65%! sneaky
> 
> Anglo have a 1 year at 3.80%- check them out its the highest rate in the market if you dont mind banking with them...



I dont really feel comfortable banking with Anglo.

What about this one, [broken link removed]
Its 3 percent but I can withraw any time with no penelties from what I see


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## Lightning (24 Aug 2009)

Guys - Please quote all interest rates with the AER figure. No bank currently offers 5% AER for an 18 month term deposit.

The best term deposit rates are here:
http://www.askaboutmoney.com/showthread.php?t=90481



> Best Buys - Highest Term Deposit Rates
> 
> 5 Months - EBS - 3.79%
> 1 Year - Anglo Irish Bank - 3.80%
> ...



EBS offer 3.58% for a 18 month term deposit. I think this is the best 18 month term deposit rate. 



> Originally Posted by *jack222*
> What about this one, [broken link removed]
> Its 3 percent but I can withraw any time with no penelties from what I see



You can do much better than BOI offer. 

If you are also considering lump sum deposits then check out the best buys for lump sum deposits here:
http://www.askaboutmoney.com/showthread.php?t=102329



> 1. Best Lump Sum Personal Deposits
> 
> Best for amounts from €10,000 to €2 million
> Nationwide UK: Easy Access (Discuss)
> ...





> Originally Posted by *jack222*
> I dont really feel comfortable banking with Anglo.



Why? Your deposit is 100% state guaranteed.


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## bob quinn (13 Sep 2009)

jack222,

Looking at your posts, it seems as though two things need to be considered based on your needs. 

1. Locking your funds away may be an issue if you intend buying a house
2. If you need access to the money, any gains you make in locking your funds away may be depleted if get hit with a breakage penalty. 

I'd always suggest to people to keep some money available on a short term basis if they live from paycheck to paycheck. (I don't know if you do, but until I know otherwise, this is what I will presume.) The gearbox may go in the car or the kitchen gets flooded etc and you need access to cash. 
On 40k, the best rate quoted at 3.80% is an annual return of 1,520 euro gross over 12 months - but remember, 25% of that is taken through Deposit Interest Retential Tax (DIRT), leaving you with 1,140 euro. A rate of just 2.5% AER (for example) will return a net figure of 750 euro, a difference of 390 euro.

So, with the above in mind; How much do you value flexibility? Is it worth 390 euro potentially? 
Would you consider more than one savings account? An instant access or notice account with some cash in that with the rest in a fixed term account? 
Remember, savings accounts are free to set up and there are usually no costs or charges associated with maintaining one. 

One last area for consideration; if you are starting off in life, the Credit Union is a good institution and have always prided themselves on service. It might be an option to open up an account in your local CU and put a few thousand in an account. You never know when you might want them in the future. 

Bob


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