# Bank of Ireland Online 15 month deposit a/c



## Armada (30 Nov 2010)

*Not sure if this has been around for a while but its the first time I have noticed  it on the Bank of Ireland website. Any opinions?*





*15-Month Online Fixed Term Deposit Account *


The Online Fixed Term Deposit Account offers you a great fixed rate of interest when you deposit €20,000 or more for a fixed 15-Month Term.

*Product Features* 
15 Month (65 week) fixed term length
Make a single lodgement only (by once off direct debit instruction)
Minimum lodgement €20,000, maximum €1,000,000
Earn a fixed rate of interest over the term
No withdrawals permitted
For more information please read the Frequently Asked Questions

*Rates* Fixed Term RateGross Interest Rate per annumEAR15-Month Online Fixed Term Deposit Account4.25%3.40%3.39%

Interest is subject to DIRT at the prevailing rate. The current DIRT rate is 25.00% but is subject to change. 


Terms and Conditions


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## Lightning (30 Nov 2010)

Thanks for posting this. 

I cannot see this on the BOI website. Can you post a direct link? Can anyone else find it or post a screenprint? 

I have also emailed a BOI contact on this. BOI have not updated their website for this new 9 month term deposit product either.


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## z107 (30 Nov 2010)

I'm curious if anyone believes this is a good deal?
Tie your money up in BoI for 15 months, and get just 4.25% on €20k?


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## Lightning (30 Nov 2010)

The rate is probably 3.40% AER. 

You can get a better rate elsewhere.

Anyone got a link !! ??


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## sally2007 (30 Nov 2010)

Reagrding rate - seems a fairly decent rate when you look at what's available in the market.

Regarding BoI - they are probably the best of a bad lot - are out to raise their own capital at the moment and hoping not to have to take anymore from the government (although that remains to be seen will that work out) - probably the safest of any of the Irish banks operating here at the moment


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## z107 (30 Nov 2010)

> Regarding BoI - they are probably the best of a bad lot


The best out of Irish banks?
There must be a safer bet than BoI out there.

(Maybe 5.8%+)


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## Lightning (30 Nov 2010)

Yes, the best of the 6 (soon to be 3 or 4) Irish banks, that does not say much.


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## MysticX (30 Nov 2010)

It's on the 365online website (BOI online banking service): http://www.365online.com/ (lower left corner)

Details break down: [broken link removed]


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## Armada (30 Nov 2010)

MysticX said:


> It's on the 365online website (BOI online banking service): http://www.365online.com/ (lower left corner)
> 
> 
> Thats exactly where I got it from... Click on Apply for Product and then Online Savings Account or
> [broken link removed]


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## Lightning (30 Nov 2010)

Thanks guys, I will update the best buy thread.


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## theresa1 (3 Dec 2010)

Equivalent Annual Rate (EAR) and Annual Equivalent Rate (AER) have the same meaning. They are used to show the full price of interest on an account. *The higher the EAR or AER, the more interest you will earn.* EAR and AER should be quoted on all Saving Advertisements to allow you to compare interest rates.

Thank's BOI but no thanks - you need to do better than this and who else uses EAR?


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## Lightning (4 Dec 2010)

Agreed, BOI are one of the worst offender's when it comes to using both gross rates and EAR. As I said on many occasions, the regulator should force all banks to use AER only when listing savings product rates.

Also agreed, BOI need to do better than this. They need to boost their deposits significantly to meet the new IMF loans to deposits ratio target and to compensate for lost deposits. BOI need to at least price match best buys in order to attempt to match the IMF targets.


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## theresa1 (4 Feb 2011)

Am I correct in thinking rate being offered has slightly gone up?


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## Lightning (5 Feb 2011)

Yes, the rate has changed to 3.58%. I will update the best buys shortly. Thanks theresa1.


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## Kanai (7 Feb 2011)

I don't understand why you say  BOI could do better. 

I can't find better than 3.58% EAR, except for the state bonds. Rabo are only 2.2%. 

Can you explain for me please? What am I missing?

Also why does the rate decrease the longer the term. Surely they should pay more for the longer use of my money?  I mean I could spend it all and they'd have nothing.


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## MysticX (7 Feb 2011)

Kanai said:
			
		

> .... I don't understand why you say BOI could do better


Disclaimer: I'm not an expert and only casually keep up with events in the financial area, this is only how I view the situation as it were.

This can be viewed from a variety of angles:
(1) BOI need the cash, need been an understatement. They only have a sort time to raise a massive amount of capital otherwise they'll fall under effective state control (like AIB).
(2) International and domestic confidence in Irish banks is shattered making it virtually impossible for BOI to tap the markets for funding. Thus BOI like most Irish banks desperately need to tap the only other source of funding available to them in the short term (bar ECB life support which the ECB has made clear that they want them weaned off it sooner rather than later).
(3) BOI is nursing massive holes in their balance sheet (not as bad as AIB but still massive). As NAMA is taking toxic assets off their balance sheet it is also leaving gaping holes in said sheet. Without a healthy balance sheet they'll find it difficult to return to profitability. 
(4) Big min deposit required of 20K.
(5) Open only to people who are BOI Current Acc Customers AND registered with Banking365.
(6) Making a deposit seems a bit clunky to me.. direct debit only. Other accounts I've had with other institutions tend to offer more options e.g. EFT and cheque.

So with (1) - (6) in mind they certainly could do better in more than a few ways. Think of PTSB which is in better shape than BOI but have better saving products available in both AER % and structure (personal opinion). 

That said I am amazed that BOI eventually made it into AAM's best buys.


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## Lightning (7 Feb 2011)

Kanai said:


> HI Ciaran,
> I am a newbie here regarding savings, so I don't understand why you say  BOI could do better. I can't find better than 3.58% EAR, except for the state bonds. Rabo are only 2.2%.
> Can you explain for me please? What am I missing?



Hi Kanai,

I made that comment at the start of the thread before the recent BoI interest rate hike. 



Kanai said:


> Also why does the rate decrease the longer the term. Surely they should pay more for the longer use of my money?  I mean I could spend it all and they'd have nothing.



You would think. 

Deposit rates follow demand and supply, marketing trickery, use of fund rules, competition, level of bank desperation for funding and ECB rate projections.



Kanai said:


> I bet you're smiling at my wet-behind-the-ears questions!



There have been far simpler questions on here before


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## Kanai (9 Feb 2011)

Thank you both for your replies. 
At the moment it seems like the trusting the banks is a gamble! 
I've been reading other threads, it's scary. 
I'd like to think I could trust the irish banks to hang in there, but some of the threads talk about armageddon meltdown - banks collapsing all around us and pulling out of the Euro. 
I mean this is Ireland Europe, not Zimbabwe Africa.
I still like BOI.    
Though, Mystix, I looked at PTSB. They are good too, but I thought they had, kinda like gone into serious christmas tree mode, shedding all over the place. 
Would you rate them on a par with BOI in the survival stakes?
Thanks


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## MysticX (9 Feb 2011)

Hi there,


			
				Kanai said:
			
		

> Would you rate them on a par with BOI in the survival stakes?


CiaranT is probably the best one to answer that.

That said there's a few things to consider here:
-They didn't partake in the huge scale commerical lending as the other banks did, rather most of their lending was in the residental market. Thus when the property bubble collapsed their losses weren't as severe. Hence that's why they didn't need the NAMA medicine.
-2010 showed some encouraging signs regarding PTSB recovery:
http://www.independent.ie/business/...ctions-and-hits-road-to-recovery-2319412.html
-As PTSB isn't on the NAMA sick list the government doesn't have the same ability to influence them due to politicial pressures as opposed to say AIB which is pretty much owned by the taxpayer at this stage and BOI where the taxpayer has a huge stake. Basically I think with less political interference the bank can return to profitability faster.
-If there is going to be a third banking force then PTSB will likely be a core part of it. They're part of the bank clearing system (or something towards that line that EBS / Irish Nationwide don't have). 

But:
-PTSB is still nursing the holes in its balance sheet.
-Their loan to deposit ratio is huge, they'll have some hard work to do to bring it down.
-PTSB was hived off from Irish Life (i.e. PTSB was dragging down the still performing and profitable life assurance part of the business).
-It's an Irish bank in the end though and no matter how strong it's individually standing is, it's associated with a weak financial system whcih has yet to be properly fixed. Take that as you will.

So from my perspective PTSB is doing quite well by itself (possibly the best of the native Irish banks) but this could be undermined by the banks as a group.


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