# Good interest on savings?



## Showmemoney (2 Apr 2009)

Hi I'm new to this site. I have an online savings plan with AIB and have been saving the max €1000 a month for over a year now. The interest I got on the account today is less than I had expected. Now I'm wondering is there a better place to save my money? I find all the terms and conditions and rates which vary depending on X, Y or Z very confusing. Is there somewhere I can simply deposit my savings and get a decent return? 

Thanks in advance!


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## Lightning (2 Apr 2009)

> Is there somewhere I can simply deposit my savings and get a decent return?



Yes. 

Do you want a regular saver product or a lump sum deposit product ?

The best return for a lump sum under 100K is Anglo at 4.75%.


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## Patches007 (3 Apr 2009)

Is it safe to invest with Anglo, after all we have heard about Anglo, in recent months?


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## Guest128 (3 Apr 2009)

Government guaranteed.....


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## acorn1984 (7 Apr 2009)

Hey there,

I have the exact same query. Have been lodging 400 monthly into my online savings account with AIB (interest 2.75%), and received interest equivalent to a saved sum of just over 300 yo yos - what gives?!!

On paper, this looks like a good deal. Can someone please explain? AIB terms and conditions doesn't shed any light...


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## Guest128 (7 Apr 2009)

How many months were you contributing the €400??


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## shellie_13 (7 Apr 2009)

Have a look at Investec - better for lump sums deposited for 6 months or longer - and really for regular savings.
[broken link removed]

Also this site helps compare interest rates 
[broken link removed]


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## Lightning (7 Apr 2009)

acorn1984 said:


> Hey there,
> 
> I have the exact same query. Have been lodging 400 monthly into my online savings account with AIB (interest 2.75%), and received interest equivalent to a saved sum of just over 300 yo yos - what gives?!!
> 
> On paper, this looks like a good deal. Can someone please explain? AIB terms and conditions doesn't shed any light...



How many months were you saving with AIB? 

A regular saver product with Anglo will offer 7.3%. You should consider switching. 



> Have a look at Investec - better for lump sums deposited for 6 months or longer



Second Best. 

See http://www.askaboutmoney.com/showthread.php?t=101813



> Best Buys - Highest Term Deposit Rates
> 
> 6 Months - Irish Nationwide - 4.50%
> 1 Year - Anglo-Irish Bank - 4.90%
> ...


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## Donnie (9 Apr 2009)

Hi All,

I want to deposit a lump sum of €20,000 - €30,000 in a savings a/c and need the interest to accrue in the next 6 - 9 months. I am not looming for a regular savings a/c.

Can anyone tell me the best bank and safest bank to deal with taking into account that I am looking for the interest to be added in the next 6 - 9 months and not in April 1st 2010.

Thanks,
Donnie


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## Lightning (10 Apr 2009)

Hi Donnie, 

The best product for you would be a 6 month term deposit or a 9 month term deposit. 

As per the above post the best rate for a 6 month term deposit for 20-30K is Irish Nationwide at 4.5%. Your deposit is 100% state guaranteed.


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## coin (27 Apr 2009)

Showmemoney said:


> Hi I'm new to this site. I have an online savings plan with AIB and have been saving the max €1000 a month for over a year now. The interest I got on the account today is less than I had expected. Now I'm wondering is there a better place to save my money? I find all the terms and conditions and rates which vary depending on X, Y or Z very confusing. Is there somewhere I can simply deposit my savings and get a decent return?
> 
> Thanks in advance!


 
I have been saving the same amount like the above. What would it work out as on interest in every year or could someone lead me to a link to work it out. Have been currently using the savings account for just 6 months


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## Lightning (27 Apr 2009)

coin, how much did you have in the account ???

An average balance of 3,000 EUR over the 6 months ????


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## RMCF (27 Apr 2009)

Just had a look at the OH's BoI EasySaver statement today (that's one of those accoutns that you lodge €500 each month), and the interest paid on the savings from April 2008 to April 2009 has dropped from 7% to 1.25% - shocking !!

But I suppose that's what happens with falling inetrest rates.

She is now looking into moving the money out of it, as expected.


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## coin (28 Apr 2009)

fungus said:


> coin, how much did you have in the account ???
> 
> An average balance of 3,000 EUR over the 6 months ????


 

Hi Fungus,

I have 6,000 EUR balance over 6 months. So it would be 12,000 EUR over a year taking 1,000 EUR a month out of my C/A. I think the interest is as follows:

year 1 is 2.5%. Taking into account DIRT is 25% would I be right that this would be 12,000 * 0.025= 300 gross interest

300/4 = 75 DIRT 

300-75
= 225 net interest in year one

Would I be right in this calculation or is there something Im missing?


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## MugsGame (28 Apr 2009)

Hi coin,

If you lodged €12,000 in a lump sum account and left it there for a year, your calculation would apply.

But interest accrues on the daily balance (roughly 1/365th of 2.5% each day). You only had €1,000 in the account for the first month. Your average balance over 12 months would be roughly €6,000 (growing from €0 to €12,000 over the year), so the interest payable will be roughly half what you've calculated. As AIB pay interest in April and your average balance was only €3,000 you'll get half this again.


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## coin (28 Apr 2009)

MugsGame said:


> Hi coin,
> 
> If you lodged €12,000 in a lump sum account and left it there for a year, your calculation would apply.
> 
> But interest accrues on the daily balance (roughly 1/365th of 2.5% each day). You only had €1,000 in the account for the first month. Your average balance over 12 months would be roughly €6,000 (growing from €0 to €12,000 over the year), so the interest payable will be roughly half what you've calculated. As AIB pay interest in April and your average balance was only €3,000 you'll get half this again.


 

Hi MugsGame,

I use the online regular saver account but I see what your saying. The interest is only on the current balance. I went on the TSB website lately to calculate the same savings with the 21 Day Notice Regular saving and it worked out a 200 EUR a year in interest. Is this any other way different to the AIB online regular savings account apart from the interest rate?

Thanks,
Coin


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## RMCF (30 Apr 2009)

The returns on saving is shocking at the minute, after having a look around at some of the options.

Could someone confirm it this calculation is correct?

Putting €30k into Investec's 6 month deposit at 4.25%.
You actually get 2.125% as the 4.25% is a yearly rate, so
minus DIRT of 25%, leaves you with return of 1.593%, which
turns €30,000 into €30478.12 after 6 months.

Correct?

If so, its a poor return. 

Can anyone explain why they only offer this rate for 6 months? Why can you just not leave your money in the account and avail of the %rate until you empty the account? I am slightly confused as to why you have to cash it in after 6 months.


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## Lightning (30 Apr 2009)

RMCF said:


> The returns on saving is shocking at the minute, after having a look around at some of the options.
> 
> Could someone confirm it this calculation is correct?
> 
> ...



Correct.



RMCF said:


> If so, its a poor return.



As far as savings rates go right now it is a good return. Second Best.



RMCF said:


> Can anyone explain why they only offer this rate for 6 months?



It is a term deposit. All term deposits have a maturity date and a fixed rate for a period of time.


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## RMCF (30 Apr 2009)

fungus said:


> Correct.
> 
> 
> 
> ...



Thanks for your reply.

Don't know if you would know, but do the likes of Investec offer the chance to immediately take your, say €30478, and start another 6 month account with them, or do you have to take delivery of your money?

To me this would be a good idea, as it would negate the need for more signing periods and/or paperwork.


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## mr.j (30 Apr 2009)

Rmcf,
Best thing to do would be to give them a ring and ask them


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## Lightning (2 May 2009)

RMCF said:


> Don't know if you would know, but do the likes of Investec offer the chance to immediately take your, say €30478, and start another 6 month account with them, or do you have to take delivery of your money?



On maturity date, Investec offer you the option of a 6 month term deposit, 12 month term deposit, a one month notice account or to withdraw your money.


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## jaygee (3 May 2009)

Excuse the ignorance (because I'm new to this site) but who are Ivestec and are my savings guaranteed and do they charge fees for investing the money? Also, wouldn't An Post give a better return (possibly long-term) now as some, or all, of their products are not subject to DIRT?


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## Lightning (3 May 2009)

jaygee said:


> but who are Ivestec and are my savings guaranteed and do they charge fees for investing the money? Also, wouldn't An Post give a better return (possibly long-term) now as some, or all, of their products are not subject to DIRT?



The first 50,000 GBP of your deposit is UK state guaranteed. 

Investec offer up to 1 year fixed. Their 1 year fixed rate is better than the An post rate.


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## GeneralZod (5 May 2009)

Investec's 1 year fixed rate of 4.5% is now the best on the market as Irish Nationwide have cut there's to 4.25%.


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## baldyman27 (5 May 2009)

ICS (BOI) sent out a letter today stating that their 3 month fixed rate is down to 0.47 %.


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## Lightning (5 May 2009)

GeneralZod said:


> Investec's 1 year fixed rate of 4.5% is now the best on the market as Irish Nationwide have cut there's to 4.25%.



Yeah, Investec now offer the best 1 year and 6 month term deposit rates.

INBS cut their rates last week according to the Financial Regulator but only updated their website today. I had emailed them about this last week. 



> ICS (BOI) sent out a letter today stating that their 3 month fixed rate is down to 0.47 %.



Have you switched yet !!?


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## baldyman27 (5 May 2009)

fungus said:


> Have you switched yet !!?


 
I know, I know Tomorrow I will. Can I pull out the money at any stage I like or is it locked in now seeing as I got that 'letter of confirmation' today?


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## Lightning (6 May 2009)

baldyman27 said:


> I know, I know Tomorrow I will. Can I pull out the money at any stage I like or is it locked in now seeing as I got that 'letter of confirmation' today?



Did you open a new 3 month term deposit? Do BOI roll existing term deposit accounts into a new term deposit ??

Once a term deposit is opened you are normally locked for 3 months.


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## baldyman27 (6 May 2009)

fungus said:


> Did you open a new 3 month term deposit? Do BOI roll existing term deposit accounts into a new term deposit ??
> 
> Once a term deposit is opened you are normally locked for 3 months.


 
Didn't get a chance to do anything today.

Yes, they seem to roll it on. Will fight with them if they don't let me withdraw it. I recall my business account manager telling me that it wasn't actually locked in.


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