Is Aib Pip Any Good

T

THENORTHSIDE

Registered User
Messages
50
I have about 250 euro a month I want to invest,save etc.I have been talking to my own bank (AIB) about a PIP.They will charge 5% on every doposit I make which will be about 125 euro per year.At the end of 5 years they will give me a bonus of 3 monthly payments which will be 750 euro ( 3 x 250 ).I need to sign up with them before the end of April to avail of this bonus.

Is this all ok or could I do better elsewhere.The person I spoke to at the bank said AIB are competitive with their charges and any one bettering their charges may have hidden costs.

Any help would be gratefully accepted.Is the some of money too small to invest, would I be better off just putting it in a deposit account.
 
Re: What Best To Do

You could easily get a similiar managed fund with 0% entry charge.

With AIB, you need 5% growth each year just to cover their huge fee, and so break even.

With a nil-fee fund, you get the 5% growth into your pocket.
 
Re: What Best To Do

250 pm = 3000 pa

5% fee = 150 pa = 750 over 5 years

So their bonus simply gives you their fees back to you.

But with a 0% fund, you would have that 750 in your fund working for you.
 
I will assume that this AIB PIP is in fact the Spectrum Saver with Hibernian as its structure (bonus of 3 monthly payments) is similar and they are selling Hibernians products.

According to the quotation system that I have the reduction in yield on the nil commission version of this product is 1.7%pa.

There is a version of the product that has a whopping 3% RIY.

Your target should be a RIY in the region of 1%. If you are saving on a monthly basis only, then Quinn Life are the answer.

If you have a lump-sum to start out with and then want to contribute on a monthly basis, there are other options.

The person you spoke to at the bank is either totally ignorant of what else in on offer or they are deliberately trying to mislead/scare you.
 
Last edited:
THENORTHSIDE said:
The person I spoke to at the bank said AIB are competitive with their charges and any one bettering their charges may have hidden costs.
Click to expand...
Whenever you get this sort of advice, it's worth remembering that the person giving it DOES (not may) have a vested interest.

Banks are continually trying to rebrand the "sales people" as "financial advisors". While they do provide you with information on that banks products, never confuse this with true financial advice for your specific circumstances.

Protocol said:
Note these same funds are for sale through banks and high street brokers with entry charges.
See:
....
www.ferga.com
Click to expand...
Protocol provided links to a number of brokers who may/do offer more competitive deals. While I don't have any personal knowledge of any of the brokers, Liam Ferguson of www.ferga.com is a regular contributor to AAM and his advice is usually (I'm tempted to use always! but I'll avoid making Liam blush) of an excellent standard!

If you have any uncertainty on what your best route forward is, a discussion/meeting with the likes of ferga might prove very beneficial.
 
You must log in or register to reply here.
Back
Top