# Large Deposit Amount - Advice Needed



## Hug It Out (13 Sep 2008)

Hi,

We're selling our house and intend to rent for a while. We have built up a fair bit of equity and need some help in deciding how to secure this equity, while at the same time earning a decent return. 

At the minute, I intend going to ACC, Northern Rock and maybe An Post, splitting the equity in three (so three deposits of excess 100k each). Are these three relatively secure.

To help pay the rent for next 18 months, I really just want access to the interest to help pay the rent. So, any advice on my choice of financial institution and the most appropriate products within these or others which meet our needs would be greatly appreciated

Thanks


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## GeneralZod (13 Sep 2008)

Irish Nationwide Building Society and Anglo-Irish Bank have both just introduced 1 year rates of 6%. See Best Buys post here. PTSB are now in the bronze position with 5.89% AER on 20 month term. The majority of the cash could be spread between these and possibly NR if you want near absolute security. Northern Rock 1 year bond has the UK government state guarantee on 100% of the funds but the rate is only 5.2%. The money is locked up in these products for the term but you're maximising the interest paid.

The rent money would need to be set aside at the start and put into a demand account. The Anglo-Irish demand account is 5.3% but their max is only €20k. First Active on-line demand is 5.22% (max €15) and AIB 7-day notice on-line is 5.25% (€10k max). NR is 5.0%.


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## iggy (13 Sep 2008)

For security and peace of mind I would stick the lot into Northern Rock. The interest rate of 5% on demand is good too....at least you can sleep easy knowing H.M. government is guaranteeing your cash.


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## Lightning (14 Sep 2008)

Why spilt the money 3 ways? As the previous poster has said you are better just putting the lot into a Northern Rock account with on demand access.



Hug It Out said:


> To help pay the rent for next 18 months, I really just want access to the interest to help pay the rent. So, any advice on my choice of financial institution and the most appropriate products within these or others which meet our needs would be greatly appreciated



If you need the interest monthly then Northern Rock offer the option to credit bank interest monthly to your account and to automatically transfer that bank interest to another account. (Monthly bank interest reduces the interest rate on offer).


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## Hug It Out (14 Sep 2008)

I just wanted to spread the risk to ensure if anything dodgy happened, I wouldn't lose my capital. I thought by spreading the principle over three institutions, I'd  lower the risk of losing my money to virtually nil. 

I know Northern Rock is 100% secure now and excepting armageddon, the capital is secure. I suppose my reluctance in putting all of my eggs in one basket stems back to negative word association from a year ago. A bit irrational, I know, but that's what they face after the run.

Anyway, you're probably right, all in Northern Rock makes the most sense and is pretty rock solid.

Wouldn't consider PTSB, Anglo, BOI or AIB. I think it's entirely possible that their could be a run on any of the above. I'm not willing to risk a cent of the principle for a juicy rate. Juicy rates just reflect the fact that they can't get funds cheaper on the open market because the market reckons they're risky.

So security is No.1, rate is No.2


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## Macattack (19 Sep 2008)

> Wouldn't consider PTSB, Anglo, BOI or AIB. I think it's entirely possible that their could be a run on any of the above. I'm not willing to risk a cent of the principle for a juicy rate. Juicy rates just reflect the fact that they can't get funds cheaper on the open market because the market reckons they're risky.
> 
> So security is No.1, rate is No.2


 

Have you stopped to think that 2 of the banks you have mentioned have ALWAYS had high rates...?


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## Hug It Out (20 Sep 2008)

Granted, they may just be more efficiently run, have lower overheads and hence are able to offer higher rates.

All moot anyway. Good decision to increase the deposit guarantee today to 100k. Now I can deposit in Ireland, chase best rate and be confident that my principle is secure - exactly what i wanted to do in the first place, but was too jumpy to consider.

Thanks for all responses


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