# Regular Savings or switch to Lump Sum Deposit



## ledzep4 (19 Jan 2010)

Hi, 

I have been saving regularly with EBS over the past 11 months with a fixed rate of 5.1% (saving €1,000 per month).  Once the 12 months are up, I'm wondering what to do with my balance.  Should I keep with a regular saving account or put it into a lump sum deposit.  

I have no mortgage or any debts to pay off, i just want to save money for a deposit on a house (which i won't be buying for quite some time). 

i can see that regular savings generally have better rates but over time I'm wondering if its better to fix over say 6 - 12 months.  

Any advise would be appreciated.


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## Lightning (19 Jan 2010)

So you have a 12,000 EUR lump sum. 

The EBS regular saver rate for year two, according to the Financial Regulator website, is 3.00%. 

You are financially best off closing your account after your one year term is up and putting it elsewhere. I would suggest, fixing the 12,000 EUR with Anglo@ 3.50% for one year.


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## ledzep4 (20 Jan 2010)

Thanks Fungus, 

my concern doing that is the state guarantee which expires in September.  i am thinking of opening a new regular savings account (like Halifax) and throw all the money in there.


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## landlord (20 Jan 2010)

Irish Nationwide 3.75% up to 20,000 and instant access......why fix if you dont have to? I opened up 6 of these accounts with them, 2 under my name, 2 under my partners name and 2 under the babys name !!! I dont think you can do better than 120,000 euro instant access......now I just have to find the money to fill the accounts ha ha.


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## Lightning (20 Jan 2010)

ledzep4 said:


> i am thinking of opening a new regular savings account (like Halifax) and throw all the money in there.



There are far better options than the Halifax regular saver account. Have you read the best buy threads here?


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## treasure (21 Jan 2010)

Landlord, how did you open two accounts under your own name?  Was one of them a joint account?


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## maura (21 Jan 2010)

I have had the same account as you , but not with as much as you have and when the year is up plan to get an post saving certs for 3 or 5 years, not sure which one of those to go for yet. This might be too long for you though.  I am then thinking of a ptsb 21day notice regular saver account at 4% to keep up with my regular saving amounts.HTH


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## Lightning (21 Jan 2010)

treasure said:


> Landlord, how did you open two accounts under your own name?  Was one of them a joint account?



As per some other thread, he opened 2 in his own name, 2 is his partners name and 2 in his childs name. Smart move.


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## landlord (22 Jan 2010)

treasure said:


> Landlord, how did you open two accounts under your own name? Was one of them a joint account?


Irish Nationwide permit you to open two accounts in your name....Ask them !!!


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## ledzep4 (22 Jan 2010)

I'm thinking of using Nationwide UK (Ireland) fixed term of 3.35%.  Any thoughts?  
General question also, which are of better value, regular savings (say 4%) or fixed term (3.35% - 3.50%)


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## emmt (22 Jan 2010)

Landlord, Might be a silly question but do you withdraw any interest that brings you above the 20k, which will earn a lower rate of interest., and keep ur balance at 20k or do you bother?...


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## DrMoriarty (22 Jan 2010)

The INBS account credits interest to your account on 31 December and allows you to have it transferred automatically to a designated account elsewhere.

I didn't know they allowed you open two accounts under each name, though. What's the story with that?


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## emmt (22 Jan 2010)

Girl on phone to INBS informed me of the same and from their website
"*How do I open an account?*
 The Instant Access Deposit Account is available to residents of the Republic of Ireland and registered charities. The account can be opened either by an individual, or jointly, up to a maximum of four people. A customer may hold no more than two Instant Access Deposit Accounts, they can be either jointly or solely."


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## landlord (22 Jan 2010)

emmt said:


> Landlord, Might be a silly question but do you withdraw any interest that brings you above the 20k, which will earn a lower rate of interest., and keep ur balance at 20k or do you bother?...


 
Interest is only paid annually, so you can keep 20 grand in there all year till the 31st of december without worrying about it and even if you forget about it after the 31st of december, the 20 grand will continue earning the 3.75% (variable), however any extra money in the account i.e. the interest you have earned will be earning interest at the lower rate of 2.5%


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## oldtimer (22 Jan 2010)

As a matter of interest regarding INBS, what is the logic in allowing  two accounts  with max of €20,000 in each @ 3.75%? Why not allow one account with max of €40,000? Same thing?


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## Lightning (23 Jan 2010)

oldtimer said:


> As a matter of interest regarding INBS, what is the logic in allowing  two accounts  with max of €20,000 in each @ 3.75%? Why not allow one account with max of €40,000? Same thing?



They want to pay as little interest as possible to customers, if they keep the limit at €20,000 then those that allow the balance to go over €20,000 get hit with a lower rate. 

It is about INBS minimising their likely interest pay out.


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## pator (24 Jan 2010)

fungus said:


> They want to pay as little interest as possible to customers, if they keep the limit at €20,000 then those that allow the balance to go over €20,000 get hit with a lower rate.
> 
> It is about INBS minimising their likely interest pay out.


 
Can I just check, not doubting you fungus, lots of excellent advice. Just this (with the examples down the page) 

seems to say that you get the full 3.75% on the first 20,000 even when the balance goes over 20K 

So if oldtimer puts 20k (or more) in two accounts at 3.75% on the first 20K in each is this not the same as 3.75 on 40K.


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## Lightning (24 Jan 2010)

Maybe I was not clear. Yes, if you have 21,000 EUR in an INBS account you still earn 3.75% on the first 20,000 EUR. 

Some savers will inadvertently let the balance go over 20,000 EUR, which benefits INBS. If INBS set the limit to 40,000 EUR then they would have greater interest pay outs. Only a small minority of account holders will realise that you can open 2 accounts.


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## pator (24 Jan 2010)

Sorry, my mistake, misinterpreted. Ya good point most non aam users would not know about opening the second account. They offer the facility to pay the interest into your current account which I think is a good idea as you can then see where the best rate for it is rather than leave it getting a lower rate at INBS.


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