# Credit Union Tax Free Term A/c



## pudds (11 Oct 2008)

Hi guys I have 21k in a credit union 5yr Special Term Share a/c which has matured recently. The first €635 int p.a. was tax free.

My question is should I open another of these accounts in order to avail of the tax free option again or considering the higher interest rates available now from  elsewhere would I be better off taking it out and putting in a bank.

Last year i got 3.75% which was the highest rate I got from the c.u. but am I likely to get more or less than that rate this year from the c.u. ?

I  reckon I would be better off putting it in the bank, what do you guys think? 

I'll see what the budget brings us of course first.


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## CUJimmy (12 Oct 2008)

Hi Pudds,

You are only allowed to hold one of these accounts. You should check with your credit union as they will have some idea what dividend they will pay this year as their financial year ends on 30th September. 

Regards 

Cu Jimmy


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## Slim (13 Oct 2008)

CUJimmy said:


> Hi Pudds,
> 
> You are only allowed to hold one of these accounts. You should check with your credit union as they will have some idea what dividend they will pay this year as their financial year ends on 30th September.
> 
> ...


 
Staff in the CU will be unable or unwise to speculate on what dividend will be recommended to the AGM. On a pure return basis, banks are offering these DIRT free term accounts, at better rates than likely, IMO, dividends this year. 

Slim


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## cork (14 Oct 2008)

pudds said:


> credit union 5yr Special Term Share a/c.


 
Do all credit unions have these accounts?


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## pudds (14 Oct 2008)

cork said:


> Do all credit unions have these accounts?



I would say they have, mail or ring your local. Even more attractive now that the DIRT will be increased from 23% to 26% on 1st Jan next.


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## Slim (15 Oct 2008)

cork said:


> Do all credit unions have these accounts?


 
All credit unions and banks can have 3 & 5 year DIRT free accounts. Some CUs may have chosen not to offer them.


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## construct_06 (18 Oct 2008)

is there any advantage really to the dirt free if the interest rate is poor.Overall would be less return than from a bank?!


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## justsally (3 Nov 2008)

pudds said:


> I would say they have, mail or ring your local. Even more attractive now that the DIRT will be increased from 23% to 26% on 1st Jan next.


 
I believe the Dirt is increasing to 23%


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## oldtimer (3 Nov 2008)

There is for and against re these term accounts. Remember your money is tied in for the term. The interest rate is variable. Credit union interest rates are likely to be very low this year but of course it varies from credit union to credit union. Doubt if any will offer in excess of 3%. Heard of a local credit union giving 2% and another nearby giving 1%. Some have been stung with perpetual bonds.


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## pudds (5 Nov 2008)

justsally said:


> I believe the Dirt is increasing to 23%



my mistake, meant from 20% to 23%


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