# Should I change my savings account?



## taxi (23 Jul 2008)

I am 1 year into a 5 year saving scheme with Permanent TSB/Irish Life, I recently got a statement and my account is worth less than the €1920 I've paid in so far. Would I be better to cancel this policy and take out the EBS saver account?

I don't know what to do, I know things could change over the next 4 years but I really can't afford to loose money.

Thanks


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## ClubMan (23 Jul 2008)

What scheme?
What is it invested in?
What charges apply?
Why did you choose it in the first place?
What exactly does it say in the statement?


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## taxi (24 Jul 2008)

Hi it's a bonussave plus account over 5 years.
It says the fund is Consensus Life Series 2 with 100% percentage allocation, it then says underneath 95% of your payments are invested.

There are charges but I can't see what they are.

If I save the same amount over the 5 years I will get a 25% bounus on payments made in year one.

The reason I chose this plan was because it was the one recommended by the financial adviser in the bank.

Thanks


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## irishlinks (24 Jul 2008)

I bet it says in there somewhere "savings can go down as well as up" .


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## redstar (24 Jul 2008)

taxi said:


> I don't know what to do, I know things could change over the next 4 years but I really can't afford to loose money.



Clearly the account was unsuitable for you, and the adviser should have assessed your attitude to risk. Was the adviser independent or just advise on one banks products ?

These type of accounts are medium to long term investments and will fluctuate in value. However, if you are going to worry a lot for the next 4 years over whether you can lose money I think you should close the account and go for a regular or lump sum (deposit NOT investment/unit-linked) savings accounts. 

See 'Financial Best Buys' section ...

http://www.askaboutmoney.com/forumdisplay.php?f=51


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## ClubMan (24 Jul 2008)

taxi said:


> Hi it's a bonussave plus account over 5 years.
> It says the fund is Consensus Life Series 2 with 100% percentage allocation, it then says underneath 95% of your payments are invested.
> 
> There are charges but I can't see what they are.


100% allocation could be after charges of 5% are deducted - hence the 95%. And then there is presumably a annual management fee of c. 1% or more? Should all be detailed in the terms & conditions. Those charges seem high given that you can get similar investments with no fixed term for no charge up front and just a c. 1% annual management fee.


> The reason I chose this plan was because it was the one recommended by the financial adviser in the bank.


Bad idea to take "advice" from a tied agent if you are actually looking for independent, professional advice. If you are panicking in the fact of paper losses with this investment then (a) you may not have understood the product or read the documentation provided and/or (b) the product was not really suitable for your specific needs.

What charges apply if you cash in early? What would you be looking at investing in instead?

Unfortunately there is no easy answer here.


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## taxi (24 Jul 2008)

I looked into it and the charges 1.75% yearly and 5% on each regular payment. I think I will just cancel it and have a look on this site for something else to put my money into.

It was an adviser from the bank I dealt with.

Would anyone recommend EBS?


Thanks for all your replies, looks like I have a bit of reading to do


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## ClubMan (24 Jul 2008)

taxi said:


> Would anyone recommend EBS?


For what - e.g. what specific product?


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## taxi (24 Jul 2008)

I was thinking of the Optimise Flexible Savings Plan @ 7% until next June.

What I really want is to save about €160 per month with the intention of leaving it there for 4 or 5 years.


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## ClubMan (24 Jul 2008)

If you are risk averse and want a return of c. 8% (gross) then what about an_ Anglo Irish Bank _8% regular saver deposit account? See the _Financial Best Buys _forum and www.itsyourmoney.ie lists of deposit accounts/rates on offer.


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