# New Investec 6 month Term Deposit Rate - 5.58%



## Lightning (23 Jan 2009)

According to an advert in The Irish Times today Investec have launched a new 6 month term deposit product at a rate of 5.50%. 

This is now a clear market leader for 6 month term deposits. 

For some unknown reason they don't publish their term deposit rates on their website.


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## GeneralZod (24 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Maybe they think this internet thing won't catch on


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## Lightning (24 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

LOL 

I think it just the fact that Investec have moved from pure corporate deposits to mixture of corporate and retail deposits and have not adjusted their website accordingly. 

Anyway, As the bloodbath strikes most other savings rates it is good to see Investec offer this market leading rate.


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## OPTIMUM (25 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Does anybody know what type of lending Investec are now engaged in here? 

I know they used to be Gandon years ago, but I just wonder why they are paying up so high  - maybe its their credit rating. 
Ratings for Investec Bank (UK) Limited
- a subsidiary of Investec plc​Fitch​Individual rating B/C
Support rating 5
Foreign currency short-term rating F2​Foreign currency long-term rating *BBB+*
 
- however, their UK office dont pay up half as much over LIBOR rates for deposits so wonder why they do so here ?(http://www.investec.com/UnitedKingdom/PrivateBank/BankingandTreasuryServices/).


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## Lightning (25 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Some valid and good questions Optimum. 



OPTIMUM said:


> - however, their UK office dont pay up half as much over LIBOR rates for deposits so wonder why they do so here ?



Investec UK don't publish their GBP *term deposit* rates on their website like their Irish wing so we cannot do a 100% comparison but perhaps Investec UK already have a greater deposit base and/or lower lending to cover. 

It is also worth noting that funding via deposits is currently considered best practice versus the interbank market and the rates offered by Investec Ireland are likely to be indicative of how much their Irish corporate lending is (possibly) expanding.


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## John Rambo (25 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Investec are creating quite a niche for themselves in the business lending market right now. As we all know, the traditional banks have pretty much closed for business. Investec (South African) have spotted a gap in the market and are financing deals, but at 1-2% higher rates.


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## Lightning (25 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Interesting. That would explain why they are able to offer market leading term deposit rates well above EURIBOR.


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## DrMoriarty (25 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*



fungus said:


> Investec UK don't publish their GBP *term deposit* rates on their website.


Some of their South African rates are revealing, though.

Completely different context, I know.


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## el diablo (26 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

this definitely looking more interesting now, especially sine Rabo, Halifax etc have dropped their rates. Think I'll sign up this week.


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## François (26 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

This looks interesting. I'm looking at both this and Anglos 5.25% year fixed rate but I'm not too confident of placing my savings in Anglo Irish Bank for a year with the way things are at the moment. Is Investec covered under the Irish governments €100,000 protection scheme?

How simple is it to open an account with Investec, I think I read on AAM that they require a copy of a passport stamped by a Garda, is that correct? Am I guaranteed interest on my savings with Investec or is there a risk that the sum I lodge will be worth less when the term is up?

I think Investec require a cheque to open an account with them. Do you think I would be able to transfer the money from my current account online to theirs, as I don't have a cheque book nor the time to get to my bank during working hours to get a bank draft.


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## Lightning (26 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*



François said:


> This looks interesting. I'm looking at both this and Anglos 5.25% year fixed rate but I'm not too confident of placing my savings in Anglo Irish Bank for a year with the way things are at the moment. Is Investec covered under the Irish governments €100,000 protection scheme?



50,000 GBP (55,000 EUR aprox.) is covered under to the UK scheme. 



François said:


> How simple is it to open an account with Investec, I think I read on AAM that they require a copy of a passport stamped by a Garda, is that correct?



It is easy to open an account with Investec. They require a passport stampted by a Garda or you show up in person at their office. 



François said:


> Am I guaranteed interest on my savings with Investec or is there a risk that the sum I lodge will be worth less when the term is up?



You are guaranteed principal and interest. 



François said:


> I think Investec require a cheque to open an account with them. Do you think I would be able to transfer the money from my current account online to theirs, as I don't have a cheque book nor the time to get to my bank during working hours to get a bank draft.



Yes, you can wire money to their BOI settlement account with a reference supplied by them. 



> this definitely looking more interesting now, especially sine Rabo, Halifax etc have dropped their rates. Think I'll sign up this week.



Good move .. Investec's rates far outstrip Rab and Halifax term deposits.


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## GeneralZod (26 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*

Investec have the 5.5% rate advertised on their website. And it turns out it is actually 5.58% AER.


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## Lightning (26 Jan 2009)

*Re: New Investec 6 month Term Deposit Rate - 5.50%*



GeneralZod said:


> Investec have the 5.5% rate advertised on their website.



Good spot. That's new. Maybe they are listening to AAM readers complaining that they don't list rates.


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## galwegian44 (27 Jan 2009)

Is there any added risk with Investec being covered by the UK's Financial Services Compensation Scheme (FSCS) rather than the Irish compensation scheme that anyone is aware of? Possibly some detail in the small print relating to non-nationals having lower priority or not being covered.

Just trying to make sure that all risks are mitigated before moving my money. I've never heard of Investec and I'm naturally a little wary.

Thanks in advance.


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## Lightning (27 Jan 2009)

Under EU law the UK would have to compensate all EU residents - not just UK residents. 

Investec are a solid company (based on their last results). I have dealt with them for a while now without any problems.


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## Lorcan02 (27 Jan 2009)

Galwegian44 ...They have just taken over the sponsorship of the Monaghan Football Team (Gaelic) .. so you'll hear a lot more about them in the future !!


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## Darando (27 Jan 2009)

They also told me that:

1 month notice account - 4.25% variable
3 month fixed account - 4.25%
1 year fixed account - 4.5%

Not sure if there is a minimum on the above accounts like the 6 months fixed (minimum €20,000)


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## OPTIMUM (28 Jan 2009)

fungus said:


> Under EU law the UK would have to compensate all EU residents - not just UK residents.
> 
> Investec are a solid company (based on their last results). I have dealt with them for a while now without any problems.


 
Hmm...BBB rating and they are a ultimately a sub of a south african plc.
We thought Lehmans couldnt fail....

I'll be staying with northern hemisphere sovereign risk and suspect the FSA are putting these guys through the ringer in the UK if the UK government wants to avoid a Kaupthing II !!!

Im sure they are good in terms of service, but you have to be wary of high payers in this environment.


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## Lightning (28 Jan 2009)

Darando said:


> They also told me that:
> 
> 1 month notice account - 4.25% variable
> 3 month fixed account - 4.25%
> ...



Their one month notice account is 4.33% AER with no minimum. 

Investec's only market leading product is their 6 month term deposit.


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## Lorcan02 (29 Jan 2009)

What does the rate go to after the 6 months ?


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## galwegian44 (29 Jan 2009)

Thanks guys, appreciate the advice.


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## Lightning (29 Jan 2009)

Lorcan02 said:


> What does the rate go to after the 6 months ?



Your term deposit expires after 6 months and you get the principal and the interest back. 

You could then choose to open a new term deposit at a new not yet known rate.


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## ThomasPH (4 Feb 2009)

Hi,
If you had €30K to invest would you put it in that Investec 6 month account??  How much would you end up with after the 6 months?  I'm a total investment virgin so excuse dumbo questions!


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## oldtimer (4 Feb 2009)

If you can afford to leave the 30K in the account for the 6 month term it is the best available at the moment. Remember the interest of 5.58% is liable for DIRT at 23%, so effectively the interest into your pocket is 4.30% AER. Your sum of 30K left for the full term of 6 months would see you with around €645 extra in your pocket.


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## Gautama (11 Feb 2009)

oldtimer said:


> Remember the interest of 5.58% is liable for DIRT at 23%,



Is the new income levy (1/2/3%) also applied?


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## Guest128 (11 Feb 2009)

Why would you pay an income levy on deposit interest?


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## Gautama (11 Feb 2009)

FLANDERS` said:


> Why would you pay an income levy on deposit interest?



Dunno, does it, I'm asking. Interest is income?  How blue is Stilton?


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## Guest128 (11 Feb 2009)

Gautama said:


> Dunno, does it, I'm asking. Interest is income?  How blue is Stilton?



I don't know but blue cheese tastes like crap!

No it doesn't apply to deposit interest, DIRT as the name implies is specifically for that, the income levy is applied to your direct income only, as far as I know.


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## Gautama (11 Feb 2009)

FLANDERS` said:


> I don't know but blue cheese tastes like crap!
> 
> No it doesn't apply to deposit interest, DIRT as the name implies is specifically for that, the income levy is applied to your direct income only, as far as I know.



Just checked it out. If there's been DIRT applied then it is exempt from the income levy.  This was not the case with previous income levies.


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## Guest128 (11 Feb 2009)

Good work!


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## ssiaman (17 Feb 2009)

There should be no risk in investing in Anglo Irish Bank and availing of the very good 1 year rate since deposits of up to 100k are guranteed by the government. Am I right?


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## John Rambo (17 Feb 2009)

You can also withdraw up to 20% on demand without penalty...that's a significant plus too.


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## Lightning (18 Feb 2009)

ssiaman said:


> There should be no risk in investing in Anglo Irish Bank and availing of the very good 1 year rate since deposits of up to 100k are guranteed by the government. Am I right?



Until September 2010 100% of deposits are state guaranteed.


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## Lightning (22 Feb 2009)

Today's Investec advert in the Sunday Business Post says that this market leading 6 month term deposit rate of 5.58% expires on March 31st 2009.


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## ClubMan (8 Mar 2009)

Gautama said:


> Just checked it out. If there's been DIRT applied then it is exempt from the income levy.  This was not the case with previous income levies.


You may also be liable for 2% _PRSI _on deposit interest (in general - not just here) but most people don't declare/pay it, _PAYE _is not really geared up to chase it and it's probably just mugs like me who are forced to do a _Form 11 _self assessed return who get stung for it...


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## SweeneyTodd (18 Mar 2009)

I rang Investec today and this product is still available until 31/03/09. The rate is guaranteed for the 6 month period & your money is safe under the UK Bank Guarantee Scheme up to £50k or £100k for a joint account. Doubt this product can be beaten at the moment elsewhere !!


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## Lightning (18 Mar 2009)

SweeneyTodd said:


> I rang Investec today and this product is still available until 31/03/09. The rate is guaranteed for the 6 month period & your money is safe under the UK Bank Guarantee Scheme up to £50k or £100k for a joint account. Doubt this product can be beaten at the moment elsewhere !!



Yeah, there is no close competitor in the market with a comparable 6 month term deposit rate. 

It cannot be stressed enough that this offer ends on March 31st 2009 and is unlikely to be repeated by any bank in the short to medium term with the ongoing ECB rate reductions. Savers should take advantage of this rate urgently while it lasts.


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## kennedst (19 Mar 2009)

I'm looking for a good rate for a 6 month deposit but have no idea about these things. Who are Investec?  How safe is your money with them?  Stupid questions I know but humour me


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## iggy (19 Mar 2009)

http://www.investec.com/Ireland/
Straight from the zebra`s mouth.


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## kennedst (19 Mar 2009)

Thanks for that. I appreciate you getting back to me.


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## Fideroiste (25 Mar 2009)

Hi guys,
I was thinking of getting one of those Investec accounts, I was trying to work out what would be the optimium amount of money to put into the account that would earn the most amount of interest but would mean that the money would not exceed the English government guarantee over the period of the 6 mths. 
My best rough % estimate earned by the money of the 6 mths would be 2 3/4%. If one put in €50,000 into the account that would equate to €2,750 over the 6 mth term excluding tax, would I be correct? Would a greater margin of difference between the maximum of the guarantee & €50,000 need to be kept in the event that Sterling & Euro return to near parity? Would the government tax be 21.5% on the interest? Any corrections would be appreciated!!

Thanks,
Fi.


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## Lightning (26 Mar 2009)

Fri, whatever you decided keep in mind that this offer closes on Tuesday coming March 31st and it will take several days to sort out the AML docs. Act Fast.


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