# Any risk in opening an Anglo fixed term deposit?



## bravo (17 Jan 2009)

Considering the attractive 6% on offer from anglo for fixed term deposits. Any risk with the current goings on? I know the capital amount will be safe, but will the interest be guaranteed up to the point where the bank goes out of business, if this happens?


----------



## doasido (17 Jan 2009)

Hi Bravo,
I guess there's a risk with everything. I opened a one year fixed 6% last month and don't regret it. According to yesterdays Irish Independent, the 6% rate is being cut to 5.2% on Tuesday next and apparently Halifax's 5.6% is being reduced from close of business today. If anything state ownership is more reassuring in these times than macho CEO's insisting they can go it alone.


----------



## trebor (17 Jan 2009)

bravo said:


> Considering the attractive 6% on offer from anglo for fixed term deposits. Any risk with the current goings on? I know the capital amount will be safe, but will the interest be guaranteed up to the point where the bank goes out of business, if this happens?



Interesting question about the interest. Can anyone confirim if accrued interest is guaranteed or just the amount the saver has on deposit?


----------



## twofor1 (17 Jan 2009)

trebor said:


> Interesting question about the interest. Can anyone confirim if accrued interest is guaranteed or just the amount the saver has on deposit?


 
Have a look at the Credit Institution (Financial Support) Scheme 2008 FAQ’s, it states;

20. *Is interest on covered liabilities covered by the guarantee?*
Yes. The guarantee covers interest due and unpaid to the point at which a call under the guarantee is made by a creditor.


http://www.finance.gov.ie/viewdoc.asp?DocID=5606


----------



## Nermal (17 Jan 2009)

Anglo is no more risky at this stage than any other Irish-owned bank. There's a decent possibility they will all be nationalised in time.

However with any Irish bank you still have the very real risks of Ireland leaving the Euro, the government 'nationalising' your assets off their own bat or on being told to do so by the IMF etc... I would say there is significant possibility of both of these outcomes in the other PIIGS countries and of the latter outcome in the UK.

So if you can get some of your assets out to a safer country it might be prudent to do so.


----------



## bogle (17 Jan 2009)

Nermal said:


> However with any Irish bank you still have the very real risks of Ireland leaving the Euro...



   Just my humble opinion but ...
  The Euro and European Union are political projects with the latter originating shortly after the Second World War (with the objective of getting European countries working ever more closely together so there wouldn't be any more major wars on the continent of Europe). 

I think it’s very very unlikely that Ireland will be leaving the Euro anytime soon. The political damage to the European project of any country departing Euroland would be immense and would undo decades of work (some would say scheming ) of the Eurocrats. 
  We know the economic situation is very very difficult but personally I think the negative vibes are being over done (especially in the media) and it’s causing some people to panic unnecessarily.

I've got a regular saver account with Anglo and am happy enough to leave my money on deposit with them.


----------



## Nermal (18 Jan 2009)

bogle said:


> I think it’s very very unlikely that Ireland will be leaving the Euro anytime soon.



I thought it was unlikely that Bear Stearns or Lehman or the world's largest insurer would go bankrupt, or that most banks in the Western world would be de facto nationalised (or de jure like NR, B&B or Anglo!), that the credit crunch would even wreck entire countries and that quantitative easing would be on the agenda for every central bank. I agree - it looks unlikely that we will leave the Euro, or that capital controls will be imposed, or that deposits or pensions will be confiscated, and I hope none of these things happen. But in constructing a plan for the future we cannot rule them out.



Yorky said:


> Therefore is it advisable to withdraw any cash on deposit and store it as securely as possible in this event?



No, I wouldn't say that. But I would say: spread your deposits across more than one Irish bank, and if possible, to non-Irish banks.

I declare an interest: I'm availing of the regular saver and fixed term products in Anglo.


----------



## bogle (18 Jan 2009)

Nermal said:


> ... But I would say: spread your deposits across more than one Irish bank, and if possible, to non-Irish banks.



Now that does sound like   eminently good advice to me. Thats what I'm doing (if you count First Active as a non Irish bank, it being owned by RBS).


----------



## Macattack (19 Jan 2009)

today is the last day for 6%


----------



## ivannomonet (20 Jan 2009)

Excuse my ignorance but is it really worthwhile to lock away lets say 1000 Euro for 1 year just to get 52.50 interest (minus DIRT I assume) ?

Surely the 52 euro isnt enough reward to lock away 1000 Euro cash for 12 months?


----------



## TomOC (20 Jan 2009)

ivannomonet said:


> Excuse my ignorance but is it really worthwhile to lock away lets say 1000 Euro for 1 year just to get 52.50 interest (minus DIRT I assume) ?
> 
> Surely the 52 euro isnt enough reward to lock away 1000 Euro cash for 12 months?


 

Is it worthwhile to lock away 20,000 for 1 year and earn 1000 Euro as opposed to leaving it in current account earning 0.5% interest or less?  I feel that non fixed rate saving accounts such as Anglo Premium Demand at 5.5% will drop rates a lot over the next few months- hence why I am fixed for a year at 6.5% with Investec.


----------



## ardmacha (21 Jan 2009)

> I feel that non fixed rate saving accounts such as Anglo Premium Demand at 5.5% will drop rates a lot over the next few months



Exactly. By the summer it will be hard to get 4%, never mind 6%. Mortgages are <4%, these high rates for savings will soon be gone. Since inflation is 1% and falling you'll wait a long time to get 5% more than inflation on your deposits (although inflation may be -2% when you are getting 3% later in year)


----------



## Lightning (21 Jan 2009)

TomOC said:


> Is it worthwhile to lock away 20,000 for 1 year and earn 1000 Euro as opposed to leaving it in current account earning 0.5% interest or less?



Yes, if you don't need the 20,000 EUR during the next year then lock. 

The best rate for a one year term deposit is 5.25% with Anglo Irish.



> I feel that non fixed rate saving accounts such as Anglo Premium Demand at 5.5% will drop rates a lot over the next few months



Logic says your right. However, On demand interest rates have got more competitive in recent months despite ECB cuts. All depends on how much the bank needs/is willing to pay for deposits.


----------



## picassoman (21 Jan 2009)

ivannomonet said:


> Excuse my ignorance but is it really worthwhile to lock away lets say 1000 Euro for 1 year just to get 52.50 interest (minus DIRT I assume) ?
> 
> Surely the 52 euro isnt enough reward to lock away 1000 Euro cash for 12 months?



What would you suggest as an alternative to achieve a better return ?

-pm


----------



## el diablo (22 Jan 2009)

picassoman said:


> What would you suggest as an alternative to achieve a better return ?
> 
> -pm


that's what I'd like to know too. most of my funds are still in Rabodirect and I'm looking to diversify a bit more as soon as possible.   I already have a decent sized sum locked into a Anglo fixed term account.


----------



## OPTIMUM (24 Jan 2009)

I agree with Ardmacha - Fixed rate accounts > 5% are a definite no brainer.

I recently got a First Active credit card for zero % on balance transfers and purchases til sept 09 with a 5k limit. So I'll be opening a Anglo reg saver account earning 8% , while I use the credit card to its max. The easiest arbitrage I have ever achieved !!!


----------



## gipimann (24 Jan 2009)

Getting back to the Anglo Irish Bank 6% fixed rate for a mo...

I have 3 accounts with AnIB and phoned them on Monday to ask to close one of the accounts (30 day notice, I would forfeit the 30 days interest as per their t&c) and move the money to a fixed rate a/c.   As the rate was changing at close of business on Monday, I was advised to scan & email the mandate form to them.

Haven't heard anything from them, and checked my online a/c today to find the 30 day notice a/c still open, and no sign of a new a/c.

I will give them a call on Monday, but just wondering if I'm alone in not hearing from them, or did I miss the boat on the high interest rate?

Thanks!


----------



## Pope John 11 (24 Jan 2009)

I have a 30 day notice account with them at present....just set up before christmas....I hear the rate has dropped from 5.35 to 4% following ECB rate drop.

Can anyone tell me where is the best place to put this €20,000 now. I already have an account with First Active Fixed lump sum account & do not want to put it with them.

I have ready current accounts in AIB & BOI feeding into regular savings accounts with AIB,BOI & FA. (I know persons may say that % wise that BOI & AIB do not offer the best rates however I find it easier considering current accounts with both).

Back to my question....where do I put my lump sum of €20,000 now. I am open to splitting it up to take the best rates. 

However I would prefer to have the money on hand to make withdrawals in the event of any emergencies & would nearly be better off with a fixed rate (similar to my FA fixed lump sum) & not ECB related.

Or is Anglo Irish 30day deposit account of 4% ok for now?


----------



## camlin90 (24 Jan 2009)

Investec 5.5% for 6 months or Anglo 5.25% for 1 year


----------



## Lightning (25 Jan 2009)

Pope John 11 said:


> I have ready current accounts in AIB & BOI feeding into regular savings accounts with AIB,BOI & FA. (I know persons may say that % wise that BOI & AIB do not offer the best rates however I find it easier considering current accounts with both)



Why not switch/ditch your 2 AIB and BOI current accounts to Halifax as well and get 10.00% interest on the first 2,000.00 EUR.


----------



## Pope John 11 (5 Feb 2009)

Yikes Anglo Irish Bank 30day demand deposit account has dropped to 3%

Is Investec Bank 1 month deposit account at a fixed rate of 4% the best out there.

As per my previous post I'm a bit reluctant to hold it there for 6 months, but sitll thinking about it.

I already have a 1 year fixed with FA at 6.25-6.5% when I opened the account last year. Is this safe ever since UB & FA merging?


----------



## raven (5 Feb 2009)

Am planning on going 1 year fixed with FA. Don't think the merger should have any adverse effects. If anything, would expect the new entity to be in a stronger position due to the efficiences that will arise (unfortunately at the cost of some staff cutbacks).


----------



## hatty (5 Feb 2009)

*French Leaseback and non payment of rental income*

Interested to see if many people bought french property believing they were going to have a garunteed rental income.  Now that some management companies do not appear to be honouring this would be interested to see how you are dealing with this. The company I bought the property from are still advertising leasebacks and they are aware that there is a lot of problems with Management companies bet they are not telling potential buyers.


----------

