# Bank of Ireland - New Savings Rate - 6%



## sprogman

Hi,

I caught the tailend of a radio program today about a new Bank of Ireland savings account - I think it was something like 6%.
Any one have any details - or was I just dreaming.
Can't find anything on bank or Ireland website.

Sprogman


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## woods

*Re: Bank of Ireland - New Savings Rate - 6% ??*

I think that it is for a regular savings account and not just for a deposit.


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## IrlJidel

*Re: Bank of Ireland - New Savings Rate - 6% ??*

[FONT=Verdana, Arial, Helvetica, sans-serif]It's a reg saver for between €20 and €1,000 a month

[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]Only info I've seen is on RTE business section:
[/FONT]
http://www.rte.ie/business/2006/1127/ssia.html


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## DrMoriarty

*Re: Bank of Ireland - New Savings Rate - 6% ??*

It's in the Indo too.


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## MugsGame

*Re: Bank of Ireland - New Savings Rate - 6% ??*

I mentioned it on our Regular Saver Best Buys thread this morning. When BoI put details on their web-site, I'll update the best buys.


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## PM1234

*Re: Bank of Ireland - New Savings Rate - 6% ??*

..


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## money man

*Re: Bank of Ireland - New Savings Rate - 6% ??*

is this correct that the lump sum is at 6%? I would be really surprised. And delighted!! But i have my doubts..


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## annR

*Re: Bank of Ireland - New Savings Rate - 6% ??*

Just spoke to BOI.  The initial lump sum is at 4% and regular savings thereafter is 6%.


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## PM1234

*Re: Bank of Ireland - New Savings Rate - 6% ??*

below


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## oldtimer

*Re: Bank of Ireland - New Savings Rate - 6% ??*

There is no way the Bank of Ireland are going to give 6% on the lump sum. They have not officially announced their rates yet from 1st December  but expect the regular savers interest to be 6%. The lump sum will be 4% for three months and after that will be the ECB rate. They could not match the regular savers rate with the lump sum rate - all of us would be rushing to them with our lump sums at 6%


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## tomreillly

*Re: Bank of Ireland - New Savings Rate - 6% ??*

Per BoI website (Press releases),  


"Special Bonus Saver Account offers a variable rate of 6.00% EAR for new regular savings is available to all customers from 1st December 2006. In addition, the lump sum rate, *applicable to SSIA holders only* will increase from 3.75% to 4.00% EAR for the first 3 months, and then revert to the ECB rate".


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## PM1234

*Re: Bank of Ireland - New Savings Rate - 6% ??*

..


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## markowitzman

*Re: Bank of Ireland - New Savings Rate - 6% ??*

this would interest me from the point of view of saving for tax payment in oct as self employed. How does it work re withdrawl of all or most of money each year in oct and subsequently resaving again from nov onwards? At present doing dd to revenue each month with no credit interest?!


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## annR

Is anyone signing up for this?  Doesn't seem to be any instructions on the website and my branch isn't answering their phone.


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## Guest124

Bank of Ireland are terrible at this kind of stuff - simple information, availability of same. Seems like everybody is just waiting for the website tobe updated after stories in the Press.


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## Perplexed

Ok. Just to clarify.

Special Bonus Savers a/c is what your SSIA with BOI turns into if you do nothing. The present rate on this is 4% for 3 months & thereafter the ECB rate for the next 18months. If you continue to save, anything from €20 to €1000 monthly you will earn 6% on the new savings element. This rate is promised to be at least that for 18months.

New SBSA a/c's had been  restricted to people who wanted to transfer in a lump sum from a maturing SSIA in another Financial entity. You can still do this & the lumpsum you lodge will earn 4% & continuing savings from €20 - €1000 per month will earn 6% interest.

The new piece -apart from the increased rate - is that these a/c's are now  open to anyone, (subject to them having a c/a as a feeder a/c & complying with the anti-moneylaundering legislation ) as a regular saver a/c.
You can save anything from €20 - €1,000 monthly (this can be done weekly or fortnightly also as long as it doesn't fall short or exceed the limits) as long as it is done by Direct Debit.

The one thing you CANNOT do with any of these a/c's is to lodge lumpsums (with the exception of the SSIA lumpsum) at any time. They have to be based on regular DD based savings exactly like the system for your SSIA.

The main difference from a lot of other regular saver a/c's is that there are no strings attached. You can withdraw at any time, you can change your DD amt up or down, you can close it at any time. You are not tied in for any timespan.

(I want to make it clear that I work for BOI & I am not plugging this but trying to clarify  as there seems to be a lot of confusion)


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## Zephyr

Thanks for the clarification Perplexed. I'm just wondering about the feeder account though.



Perplexed said:


> The new piece -apart from the increased rate - is that these a/c's are now  open to anyone, (subject to them having a c/a as a feeder a/c & complying with the anti-moneylaundering legislation ) as a regular saver a/c.



Can this be with any bank or does it have to be a current account with BOI like the AIB Regular Saver?


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## Guest124

Another question for you Perplexed - I had my SSIA with ACC Bank and when I got my cheque I lodged it into my BOI Savings Account (also have a current a/c) back on 8 Nov 06 - will I be allowed to lodge this money into my new SBSA a/c. I can provide a closing statement from ACC Bank if needed.


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## Perplexed

Sorry, I should have clarified that. You can have your current a/c with any bank - as long as it's an a/c that can pay out D/D's.

As long as you bring in your closing statement from ACC to prove that your funds have come from an SSIA a/c I'm sure there should be no problem transferring the lump sum into a Special Bonus Saver Account.

Be sure to bring in your ID & proof of your address (the final statement from ACC might be accepted for this) Even though you obviously have existing a/c's in BOI the regulations on Interest Bearing A/C's mean we still have to get new ID.

You might as well earn 4% on your SSIA money. In an ordinary Demand Deposit it's only earning 0.55% !


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## MugsGame

Thank you for being honest about your affiliation. How long does the 4% on the lumpsum last? I thought it was only for 3 months! 

I would recommend saving the lump sum separately. NR offer the same rate but with a longer rate guarantee.



> you can close it at any time. You are not tied in for any timespan.



This is true of all the regular saver accounts (even the Anglo one.). BoSI are the only one that may penalise you for closing the account.


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## Perplexed

The 4% on the SSIA lumpsum is set for three months & then will revert to ECB rate for 18 months.

I'm not sure but I know that some of the other regular savers change rate if you make more than a certain number of withdrawals a year.

Always read the small print in these products !

We do not have brochures - this is not official but it's what I've been told - because it's suspected the ECB rate may go up again shortly & brochures could be out of date very quickly.


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## senara

Which ecb rate? What is its current value?


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## Perplexed

Current ECB rate is at 3.3%.

This rate is changing frequently and it's anybodys guess as to how much more it will change - which is good for savers but not so good for mortgage holders.


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## Guest124

Perplexed said:


> As long as you bring in your closing statement from ACC to prove that your funds have come from an SSIA a/c I'm sure there should be no problem transferring the lump sum into a Special Bonus Saver Account.
> 
> Be sure to bring in your ID & proof of your address (the final statement from ACC might be accepted for this)


 

- I hope there is no problem and final statement from ACC should be accepted as proof of address but from previous experience guess it will depend on who I get at the Customer Service desk -we will see.
Will only go to Northern Rock if I really have to. I intend to do the €1000 per month on top of the SSIA money.
Thanks Perplexed for your help.


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## justsally

Hello,

I received my SSIA cheque in the post on Friday - An Post. Can I open a Special Bonus Saver account by simply taking the cheque into a Bank of Ireland Branch, or must I lodge it first to my normal current account with another bank and arrange a direct debit for both the lump sum and monthly savings amount.

Thanks for your help.

Justsally


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## Marcecie

Perplexed said:


> Current ECB rate is at 3.3%.
> 
> This rate is changing frequently and it's anybodys guess as to how much more it will change - which is good for savers but not so good for mortgage holders.


Perplexed;
my SSIA matured from ACC in June I just lodged it in credit union can I now lodge that money in new BOI savings at 4%? I have a current a/c with them and will also be starting the new 6% a/c, thanks for all the info.


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## messyleo

Perplexed said:


> Current ECB rate is at 3.3%.
> 
> This rate is changing frequently and it's anybodys guess as to how much more it will change - which is good for savers but not so good for mortgage holders.


 
current ecb rate is 3.25%


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## messyleo

'potential' however is indeed the word. if you're looking for a guaranteed return, 6% is a good rate. saving and investing are two very different things which reflect different goals/objectives. I must say, i doubt i'd have the dedication to open up reg saver acs with all the different banks! I think two would be my limit, as i'd get very confused! The BOI rate does look like a good no strings attached option - at least in the short run.


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## Perplexed

Yorky,
Deposit a/c's never attract fees, shouldn't anyway.
Also the only tax deposit interest is liable for is DIRT.
I agree with you that if you want to put lumpsums away for a longer term the best way to go is investment. Inflation is running -I'm told - at over 4% so if your money is not earning more than this, it's actually depreciating.

Gravitygirl : I think the ECB rate is actually 3.25...to a few decimal points sorry I can't be more precise, so for convenience we round up to 3.3%.

To put things in perspective. The main objective of all these regular saver a/c's is to get people to continue to save. Saving was something a lot of people hadn't been doing for years till the SSIA's came along & after doing so successfully for 5yrs & at this stage probably not even missing the money, it's a good habit to continue.

JustSally. 
You can bring your  An Post cheque into your BOI branch along with the final statement, which probably came along with the cheque. Don't forget to bring in ID & proof of your address, if you want to get everything done on the spot. It can be lodged directly into your new SBSA a/c then.

Marcecie : I think you can still lodge this money to an SBSA. The time limit is 6 months so it's still within that time frame. Remember you do have to bring the closing statement with you.

I hope I have answered everyone. 
Frankly I'm amazed at all the questions. Where I work our customers have been calling in/phoning us all week with queries. We're only too happy to answer & I am saddened that some of you don't seem to find your local branch staff as approachable.

Whatever organisation you are with, I just think saving is a good idea.  Do read or ask about the terms & conditions of any agreement you enter into, if you're tied in for a fixed term, access to your funds etc. It's important to get your money to make the best return, on terms that best suits you.


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## johnwilliams

why are  lump sum rates  different to the monthly saver rate


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## Sue Ellen

Perplexed said:


> Deposit a/c's never attract fees, shouldn't anyway.
> Also the only tax deposit interest is liable for is DIRT


 
Hi Perplexed,

This extract from [broken link removed] would lead one to believe that PRSI/Health Levy might also be due? This has been discussed previously on AAM.

*"Tax on Interest earned on Regular Saver Account*

We will deduct Deposit Interest Retention Tax (DIRT) at the standard rate (at present 20%, but this may change), from all interest earned, and we will pay this directly to the Revenue Commissioners.
You do not at present have to pay other Irish income tax on the interest, but you may be subject to PRSI/Health levy"


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## Perplexed

[broken link removed]     [broken link removed]

Deposit Interest


            Deposit Interest that has been subjected to DIRT is taxable under              *Schedule D Case IV*. The DIRT deducted is deemed to cover the              tax liability arising on this income in full irrespective of the marginal              rate of Income Tax ordinarily paid by an individual. However individuals              are still required to declare this type of income to Revenue.

*DIRT Refunds* If an individual is aged 65 or over *or*              they are permanently incapacitated, they may be entitled to a refund              of DIRT. For more information on this please [broken link removed] 


With regard to absolutely straight forward deposit a/c's where the interest is paid once annually I feel sure that DIRT is the end of the tax liability.
There are however  more complicated types of deposit a/c's where PRSI & Levies may apply depending on your Tax Status ie. Self Employed etc.

I'm not an expert on the tax situation so I am open to correction on this.

I think we all consider PRSI & Health Levy as Taxes but Revenue doesn't.

I've tried to answer the questions re the opening criteria & operation of these a/c's. I'll withdraw gracefully now & leave the tax bit to people more experienced in this area.  From reading the previous discussion - thanks Sueellen for drawing attention to it, it seems like I'm not the only one confused. Happy savings folks whatever form it may take!


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## oldtimer

Perplexed has given good information and responses also very helpful. What a pity Bank of Ireland have yet to update their site with all the new relevant information. They are still advertising the 4.75% rate (10.30am, 4th Dec) when the 6% was supposedly launched on 1st Dec. I am now off to my Bank of Ireland for the info.


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## annR

I rang my local branch and they opened an account for me, but didn't have any brochures to send so I do not know the full T&Cs.  Don't worry, I haven't signed anything yet


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## Stronge

I went into B/I on monday last to set up this a/c._ My SSia had matured last month so the girl said it had rolled into one of these new a/cs so there was no need for me to open an account. I wanted to use my lump sum to fund the DD for €1K per month. From what the girl told me I would have to take out the 1K each month and put into my c/a and then a Direct Debit would transfer it back into the same account!!! She also told me that the lump sum would attract a certain interest and the monthly amount would get the 6%. If I am taking the money out each month how would be bank know that I was taking from my lump sum and not from the new savings. I felt it would be much better if I could open a new account and the 1K would go into it each month and it would be clear that I was saving this amount. _
_I am not sure if I am making myself clear but I find the entire account is very confusing with two amounts of money in the same account getting different interest. I also rang banking 365 last night and she was not sure what the situation is I also asked her if the interest would be broken down between the two rates. She could not answer that question either.She advised me to take the entire amount out and put into my c/a and let the DD take care of everything!!_


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## Guest124

It seems they go out of the way to make things complicated -would be interested in an answer to the above - I certainly wouldnt attempt to answer. Do other bank's in other countries carry on like this with one a/c and two different interest rates. Also is this a/c open-ended -havent seen this mentioned anywhere?


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## annR

I think we have to wait to see the T&Cs - until then speculation about it is indeed just going to lead to confusion.


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## jpd

I must say that they seem to have botched the launch of this product!


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## Omega

how is EAR interest calculated?


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## Guest124

* Terms and conditions apply.  - Anybody know what these are. The last time I went into Bank of Ireland for the terms and conditions of the FREE Current a/c they just handed me the same brochure they had posted out to me which said terms and conditions available on request. They are not on the website -somebody please help.


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## DirtyH2O

They gave me the T & C for the Saver account when I opened it. It's been around for a while, the major change is the rate for the savings portion. The SSIA deposit portion seems unchanged.
The rates haven't been updated in the document.


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## Cligereen

Just for the info, I was in the BoI earlier in the week to increase my monthly contribution to the €1000 max. I was dealing with their financial advisor. She said that we could have as many of these accounts as we wanted. She said that nowhere in the T&Cs does it limit a customer to only one of these accounts. Perhaps this is useful information to somebody with more money than I have to save! However, I am looking at setting up a second one with a small monthly deposit just to have the option to increase it if and when possible.

Clig.


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## Guest124

That's just crazy -so if I could afford it I could feed say 5 €1,000 amounts into five separate a/c's instead of just having one putting in €5,000 -madness!


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## Cligereen

That's right. It did seem a bit odd to me and I quizzed the advisor on it but she was adamant that it was no problem. She said she has set up more than one account for other people. I'll give it a go with a minimal initial monthly deposit and see what happens.

Clig.


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## oldtimer

According to the terms and conditions of the special bonus saver account at Bank of Ireland section 2.9 states ''only one account can be opened per account holder.''


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## Fergal

Does anyone know how/why the banks can suddenly give such generous interest rates for regular savers?  i.e. rates more than mortgage interest rates

Is it simply a loss leader?

Or could it be that several banks are concerned about their cash-flow?


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## messyleo

well as it's only for regular savings and not lump sums, if you only save for a year let's say they only have to pay the full 6% on the first contribution, then 6%*11/12 on the second contribution and so forth until they pay a teeny 6%*1/12 on the final months contribution, so it's not like you can put in 20k now at 6% for a year and get the full 6% benefit. it is a great deal for those who don't have a lump sum atm and will only be able to save on a regular basis anyway. Also I think more people than initially estimated are saving their ssia money so maybe the banks are competiting to keep a hold of the funds?


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## oldtimer

Yorky poses a very interesting question and one I have thought about seriously i.e. make extra capital repayments on a mortgage @ 4.35% versus NR at 4.15% and drip feed the allowed €3050 into the various RSAs' at 6% plus. Would need Ronaldo to work it out. At the moment I think pay off some capital but then one must think of mortgage relief. Its a tough call.


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## PM1234

Apologies if this question is very basic but in the case of a lump sum v regular savings does anyone know if there is something to stop a SSIA holder withdrawing the lump sum periodically and drip feeding the max contrbution into the regular savings account to avail of the 6%? Would there be any advantage in this? I realise this would only apply if the regular contribution is under the max allowed?


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## shane55

Yorky said:


> Incorrect, I pay PRSI and levy every year on deposit interest.


 
I checked this on the revenue website

You only pay PRSI/health levy on Interest if you are not classed as an employee. This is from a PDF leaflet on the site " a guide to self Assessment"

"PRSI is not payable on income taxed under Self-Assessment by a person :​​​who is an employee (other than a proprietary director) only or
occupational pensioner and whose selfassessed income consists of
income from investment, rents, etc.,"​


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## Diego Murphy

Cligereen said:


> Just for the info, I was in the BoI earlier in the week to increase my monthly contribution to the €1000 max. I was dealing with their financial advisor. She said that we could have as many of these accounts as we wanted. She said that nowhere in the T&Cs does it limit a customer to only one of these accounts. Perhaps this is useful information to somebody with more money than I have to save! However, I am looking at setting up a second one with a small monthly deposit just to have the option to increase it if and when possible.
> 
> Clig.


 
Only one SBSA account can be opened per customer with BOI.


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## bos4

Following up on Gravitygirl's post:

(1000@.06)+11/12(1000@.06)+10/12(1000.06)+9/12(1000.06)+....
produces 390 before dirt and 12,000 sitting in your bank account. After dirt, this gets knocked down to 312. When you look at the interest rate, you get all excited and think that you have a great investment opportunity. Certainly, when I first looked at it, I conjured up 720 as the interest on 12k and this then knocked down to 576. It's a bit of a let down when you look at it carefully.


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## oldtimer

So from what bos4 is saying, if you have €12,000 it is better to put all into say Northern Rock @ fixed rate of 4.25% now rather than drip feed €1,000 per month at Bank of Ireland @ 6%? Putting €12,000 into Northern Rock would yield €408 after dirt tax whild bos4 says investing @ the 6% would only yield €312 after dirt tax with Bank of Ireland.


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## messyleo

no it's better to put the lump sum into NR, and then drip feed it to a RSA!


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## blobert

I opened one of these accounts today, it was very straightforward.

Direct Debit set up to take €1,000 from my AIB account every month, interest rate is 6.25%

Just hope they raise it to keep up with others.

Now waiting for Bank of Scotland to get back to me to set up their offer too...


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## Guest124

I have set up one of these Special Bonus Saver Issue 7 a/c's and will sit back as the ECB rate goes up and up-I hope!


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## justsally

Perplexed,

*ouch* I've just noticed that I didn't acknowledge the advice you gave me on 3rd December.    Better late than never I hope.   Thanks again.

Justsally


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## pator

oldtimer said:


> So from what bos4 is saying, if you have €12,000 it is better to put all into say Northern Rock @ fixed rate of 4.25% now rather than drip feed €1,000 per month at Bank of Ireland @ 6%? Putting €12,000 into Northern Rock would yield €408 after dirt tax whild bos4 says investing @ the 6% would only yield €312 after dirt tax with Bank of Ireland.


 
If u drip feed from nr into bof i does this example miss the interest you would be also be earing on the lump sum, ie the money still in the nr account before its lodged to bof i? 

So if u have €20K in nothern rock earning interest at 4.15, then at end of month u have 19k earning 4.15 and 1000 at 6.25, then 18k and 1k @ 6 and 1k @ 6* 11/12

Is this accurate? 
Is there an approx amount at which it is not worth dripping out of? (eg if u have €30k on deposit is better just leave alone?)


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## Guest124

I got my annual interest dated 20 Mar which presumably included 4% on my Lump Sum Balance and 6.25%aprox. on my Regular Savings Balance. Will this interest itself get 6.25%? I want to withdraw from this account so should I just take out exactly the Lump Sum Balance amount? I can get a better rate elsewhere for this than 3.75% aprox.


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## cork

What about the EBS offer?

The best offers then are AIB, BOI, Hallifax, Anglo for regular savings  and Rabo for sums up to 10K.


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## Guest124

I reached my 18th month anniversary this month so now I am getting 3.75% EAR on all my money. I still have my direct debit going in for the maximum amount.
I understand I can change this amount but can I also just stop my direct debit completely and leave the balance to gain Interest? I dont want to keep putting in the full amount and at 3.75% if I could I might just leave some money in it if that's possible.


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## oldtimer

Mine reached 18th anniversary also. Drew out all the money and stopped the direct debit -finished it completely - Bank of Ireland hopeless, offering just 3.75%. There are many better offers out there, 5% and more.


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## Guest124

oldtimer said:


> Mine reached 18th anniversary also. Drew out all the money and stopped the direct debit -finished it completely - Bank of Ireland hopeless, offering just 3.75%. There are many better offers out there, 5% and more.


 
- Me too!


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## Perplexed

Theres' a new Easy Save with BOI. Int rate of 7% up to balance of €5000. Max DD amt of €500.

Can't put in a lump sum though & access to your funds without penalty 4 times pa.
I stopped & closed my SBSA  and  I'm saving into this a/c instead.
I put my SBSA balance into Rabo @ 4.75 for 3 months until I decide what to do with it.
When I've reached my €5k I'll check up on what else is available. All the good rates seem to be for new products, whichever company you go to. Just keep your eyes open for the next deal ...


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## Guest124

When I check my Current a/c 365 online it still show's direct debit that I had for my special savings a/c. I specifically asked to cancel this -after all I did close the a/c. Is this normal - will it just go off soon? Also It stil show's my special savings a/c but with a correct balance of nil - why keep showing this?


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## Guest124

Well folk's I decided to phone 365 online to check if my d/d had been cancelled and surprise surprise the Clerk I dealt with in person in the Bank the other day had never cancelled the d/debit so the operator I am talking to says hold on and I'll check with your bank -I'm stuck on hold -then I hear hello and it's my local bank on the line -explain the story -oh I cant do that I'll put you on to the special saving a/c section and just in case they dont answer here is the direct number so I wait -phone disconnects. I've had enough. I've just cancelled it myself (well I hope I have) online. Surely the operator I phoned on 365 online when they realised it hadnt been cancelled they should have offered to cancel it themselves and maybe remind me of the facility online for doing it myself. Once again as far as I was concerned it had been cancelled when I was in with them closing my special a/c. Keep this crap up BOI and the Current a/c will be closed next.


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## MrG

Hi,

Do BofI pay all the interest when closing the Special Bonus Saver Account? I've read the T&C's and it only says the interest is payed annually in March, but I presume they pay all interest when closing the account as well. My account reaches 18 months at the end of this month so want to trasfer the funds to somewhere offering a higher rate

thanks.


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