# EBS - 5.1% Fixed Rate - lump sum deposit a/c



## eileen alana (26 Feb 2008)

EBS have a new 5.1% gross P.A./A.E.R, fixed rate savings account for lump sums. Min Balance  25,000 euro,Max Balance 500,000 euro. 

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## MugsGame (26 Feb 2008)

Thanks. Irish Nationwide have a similar offer, with lower minimum balance.


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## eileen alana (26 Feb 2008)

Yes and if Nationwide decides not to demutualise for another two years, savers are in with a chance to share in any eventual payout .


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## brian1 (27 Feb 2008)

If you already have an Irish Nationwide Account that currently would qualify for demutilisation, would there be any danger in opening another account?


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## ClubMan (27 Feb 2008)

What do you mean by "danger"?


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## MugsGame (27 Feb 2008)

[broken link removed]



> Where you transfer your funds directly from one Share product to another Share product, your membership with the Society remains continuous from the date on which you originally opened your first Share account, provided that the representative account holder remains unchanged.


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## U2Fan (28 Feb 2008)

The 5.1% offered by both EBS + Irish Nationwide seems to offer the best rate for 1 year lump sum deposits, unless anyone knows of a better one? I would be looking to invest 250k circa.


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## ClubMan (28 Feb 2008)

Are you putting €250K on deposit for a year because you will definitely need it after that time? If not then you should be aware of the risks of putting such a large amount on deposit - e.g. 5.1% after _DIRT _is c. 4% net which is less than the last reported inflation figure (4.3%) so your money is losing real value. There is also a (most likely slight) risk in investing such a large sum with a single institution since the _CB/IFSRA _depositor compensation scheme only covers about €20K in the worst case scenario.


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## eileen alana (28 Feb 2008)

U2Fan said:


> The 5.1% offered by both EBS + Irish Nationwide seems to offer the best rate for 1 year lump sum deposits, unless anyone knows of a better one? I would be looking to invest 250k circa.


 

I agree, it is far too risky putting all your eggs in one basket. You are looking at opening 12 accounts saving approx 20,000 in each one, if you are married you'll be able to open two separate saving accounts within the same institution which will lighten the workload involved. Have a look through the Financial Best Buy Forums for the best interest rates currently on offer. With that amount of spare cash and the risk of inflation eating away at it perhaps it would be advisable for you to see an Independent Financial Advisor


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## vipera1 (29 Feb 2008)

if you're married, you should be able to open 3 accounts, one in your name, the other in your spouse's and one joint a/c.


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## U2Fan (29 Feb 2008)

eileen alana said:


> I agree, it is far too risky putting all your eggs in one basket. You are looking at opening 12 accounts saving approx 20,000 in each one,


 
Thanks for this Eileen, but why open 12 accounts ?


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## eileen alana (29 Feb 2008)

U2Fan said:


> eileen alana said:
> 
> 
> > I agree, it is far too risky putting all your eggs in one basket. You are looking at opening 12 accounts saving approx 20,000 in each one,
> ...


 

As Clubman said above, the _CB/IFSRA _depositor compensation scheme only covers you for about €20K if there was a possibility of a bank going under.


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## eileen alana (29 Feb 2008)

vipera1 said:


> if you're married, you should be able to open 3 accounts, one in your name, the other in your spouse's and one joint a/c.


 

Would a saver be covered by the deposit compensation scheme if he had his name on more than one account (be it a single and joint a/c) with a particular financial institution?


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## Duke of Marmalade (1 Mar 2008)

eileen alana said:


> As Clubman said above, the _CB/IFSRA _depositor compensation scheme only covers you for about €20K if there was a possibility of a bank going under.


It's 20K per *person* not per account.


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## Mr Sparkle (1 Mar 2008)

For the record you're covered for 90% of your savings up to a maximum of €20K. This means you can save up to €22,2222.


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## eileen alana (1 Mar 2008)

Mr Sparkle said:


> For the record you're covered for 90% of your savings up to a maximum of €20K. This means you can save up to €22,2222.


 
How are you getting the figure of 22,2222?  90% of 20,000 is 18,000.


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## jpd (1 Mar 2008)

You are covered for 90% of your savings, with a maximum of € 20,000

So if you have € 22,222, you will get back 90% of €22,222 = €20,000
If you have more than €22,222, you will get back €20,000
If you have less, you will get back 90% of the amount


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## eileen alana (1 Mar 2008)

Got it, thanks for that.


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## MC D (13 Mar 2008)

ClubMan said:


> Are you putting €250K on deposit for a year because you will definitely need it after that time? If not then you should be aware of the risks of putting such a large amount on deposit - e.g. 5.1% after _DIRT _is c. 4% net which is less than the last reported inflation figure (4.3%) so your money is losing real value. There is also a (most likely slight) risk in investing such a large sum with a single institution since the _CB/IFSRA _depositor compensation scheme only covers about €20K in the worst case scenario.


 

Just wondering clubman i have 300k to invest from the sale of a property which i won't be needing for a long time i was going to invest it with either Anglo or ebs and i would be earning approc €12k after dirt tax. I would not be prepared to invest in stocks or shares not for me i'm afraid not brave enough.you are saying i would be loosing real value how is this?


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## eileen alana (13 Mar 2008)

I feel it would be madness and extremely risky to invest such a huge sum of money in one financial institution. In addition, inflation is currently running at 4.8%, you will lose out because most of the higher interest saving accounts are paying around 4% after deduction of dirt tax.


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## mickeyg (14 Mar 2008)

What would you recommend then in terms of an investment strategy to better inflation and get a return?


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## MC D (14 Mar 2008)

i was going to ask the same question mickeyg . I understand what the other posters are saying by having a large deposit with one bank leaves me open (if only slightly) if there ever was a bank collapse. So i'm probably better to divide the money between Ebs, Anglo and Irish Nationwide after that i'm i bit confused i thought i was doing ok earning €12000 interest Pa but it seems not.


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## pennycent (17 Mar 2008)

First Active are offering a money market deposit rate of 5.02% for sums of 30,000 plus for a minimum deposit time of 4 months.


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## Guest127 (17 Mar 2008)

that offered me 5.15% last week for the 4 months so that appears to be down a bit.( I was withdrawing from the ecb account which they have effectively reduced to a max of 4.05%)  while cm is correct  with inflation at 4.8% ( this is one months figure and is influenced by petrol prices etc) and you receive 4% net you are certainy not making money. Sceil eile . Last year I retired and received a gratuity. stuck it into a deposit fund to mull over options. while changing life insurance policies the broker enquired as to my 'intentions' with regard to this gratuity. Not alone did he want me to invest it in a policy of some sort he wanted me to borrow more  (gearing or something) and went on to explain that I would 'only' have to pay the interest on the borrowed money, which in the meantime would earn much more in a policy invested in various stocks/funds/shares etc.  He was gushing about the amount of money I could possibly make over the next few years and sure after clearing the borrowed money I should still clear a nice tidy sum.  Now maybe he was just unlucky with the way things have panned out in the last year but its a bit like betting. If you can't afford to lose it then don't bet. I didn't invest with him. So while I am certainly not making anything at the  current 5.1% at least my capital is relatively safe. I am also aware that the current rate of interest might not be around next year.


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## thatbeatsall (18 Mar 2008)

I was thinking on a fixed two-year deposit account.  Is DIRT tax taken every year by the Revenue or only at the end of the two years?


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