AIB & EBS Deposit rate increase

Well I've not even got a response from AIB yet on scheduling an appointment to setup a deposit account. Looking at their site, an AIB current account will cost a minimum of €18 per year, call it €20 a year if I include one or two transaction charges. I can setup a current account in their app without an appointment, and then setup a deposit account online. Awkward but worth it compared to the 2% BOI are now offering.

Am I missing anything? For the sake of €20 per annum it seems worthwhile setting up a current account with them, to avail of the 3% AER on deposits.
 
@Toastin
You could reduce the cost still further. Open an AIB current account online which gives you access to AIB online banking. Then using your online banking open both a regular demand deposit account, and your two year fixed term deposit account to get the 3.02% AER. And then close the current account as you really won't have any use for it. You will retain your online banking because of the demand deposit account and this account enables you to do most of what the current account can do (transfers in and out, standing orders, etc.)
 
Does anyone have any experience of opening a Fixed Term account with the EBS? Do you have to jump through the same hoops as you do with the AIB?
 
I have tried to open a Regular (family) saver account as I have a Current account with them and they are hostile. I have waited two weeks to get an appointment (they didn't return my call initially). Not sure it's worth the hassle to get an average 3% on 6k over the year but it should be no extra once I get it up and running. AIB insisted I open a current account which I didn't. I can see their point of view as I am deadwood account holder to them.
 
@elcato Just to be clear, is this AIB or EBS ? The reason I ask is that I set up an AIB regular saver a/c last week and it was surprisingly easy. You're correct that the benefit of these accounts is a bit dubious, but I a using it to collect payments from a colleague and it provides a clear and useful tracking mechanism. The fact that the accounts reset to zero for interest purposes after 12 months limits their value enormously.
 
This is EBS. AIB refused me on the grounds I didn't have a current account with them (only a savings account and Credit Card).
 
I guess AIB is behaving like any rational oligopolist that doesn't have to fear regulation would behave.
 
I have €150k to invest in one of our bricks and mortar banks here in Ireland.

Which bank is offering the best return for

A one year fixed term.
A two year fixed term.
A three year fixed term.

I am considering a State Savings Product for 3 years....how does this stack up and is investing there for that extra year worth it?

The bank of Mum and Dad may need funds over the next two years but maybe not for 3 years.
 
Grizzly said:
I have €150k to invest in one of our bricks and mortar banks here in Ireland.

Which bank is offering the best return for

A one year fixed term.
A two year fixed term.
A three year fixed term.

I am considering a State Savings Product for 3 years....how does this stack up and is investing there for that extra year worth it?

The bank of Mum and Dad may need funds over the next two years but maybe not for 3 years.
Click to expand...

Best Buy - Savings Best Buys

Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...
www.askaboutmoney.com
 
Grizzly said:
Which bank is offering the best return for

A one year fixed term.
A two year fixed term.
A three year fixed term.

I am considering a State Savings Product for 3 years....how does this stack up and is investing there for that extra year worth it?

The bank of Mum and Dad may need funds over the next two years but maybe not for 3 years.
Click to expand...
I was actually thinking about this today. I have money in the "overseas disruptors", but I have also cashed in some recent State Savings products with the intention of reinvesting them after 1st October. Before I commit them I decided to look at the options available in the Irish market, in particular the bricks and mortar ones.

A one year fixed term - AIB are offering 2.50% AER, subject to DIRT
A two year fixed term - AIB are offering 3.02% AER, subject to DIRT
A three year fixed term - PTSB are offering 3.00% AER, subject to DIRT

State Savings Three Year Savings Bond is offering 1.32% AER (free of DIRT) which is very close to 2% for comparison purposes.
There are minimums and maximums to be considered, and also the guarantees that are available - AIB and PTSB are guaranteed under the DGS for a max across all accounts per customer of €100,000 - sole or €200,000 - joint (may be a consideration if you have other accounts with them or putting the entire €150,000 with one of them) whereas the Savings bonds are guaranteed up to the maximum you are allowed invest in them (€120,000 per issue, and €250,000 - sole or €500,000 - joint in the aggregate per customer)

The one advantage of the State Savings Three Year Savings Bond is that the money can be withdrawn at any time should you need it urgently. The downside of this is that the bulk of the interest is paid in the final year, so the return after say 12 or 18 or 24 months would be very poor. The banks are, by comparison, fixed term meaning FIXED term. This may or may not be aa consideration.

If you find anything else I'd be interested in hearing about it.
 
So, looking at the return after DIRT.

I year fixed AIB is circa 1.67 net.
2 year fixed AIB is circa 2.03 net.

3 year fixed PTSB is circa 2.01 net.

State Savings is 4% after 3 years.

The difference in return between the 1 year and 2 year AIB rate is small, but you are tying up for an extra year to get that smaller return. So the 1 year fixed is probably the one to go for and then review the situation after the year.

The 3 year fixed PTSB rate does not look attractive compared to the 2 year AIB rate.

The State savings looks good but you are tying up money for 3 years.
 
Grizzly said:
The 3 year fixed PTSB rate does not look attractive compared to the 2 year AIB rate.
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However, hypothetically, if rates reduced following any ECB hypothetical reduction, at end year 2 with AIB you could regret not taking 3 years with PTSB if 3% not available anymore.
 
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podgerodge said:
However, hypothetically, if rates reduced following any ECB hypothetical reduction, at end year 2 with AIB you could regret not taking 4 years with PTSB if 3% not available anymore.
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Yes. This is always a consideration. I am not sure that rates are going to fall and would gamble on that. But the best thing to do would be to hedge against rates going up or down and maybe just go for two years?
 
Where rates are concerned I’d take the view that a bird in the hand is worth two in the bush and work with what’s on offer at present. In your shoes, given the possibility that you may need money along the way, I’d split it and put

€50,000 AIB one year fixed term at 2.50% AER
€50,000 AIB two year fixed term at 3.02% AER
€50,000 PTSB three year fixed term at 3.00% AER

Gives you guaranteed access to portion of your capital at various points while fixing at what currently appear to be decent rates, allows you to reinvest at prevailing rates as these terms expire, and keeps you within the DGS limit. There is no additional cost in splitting like this,
 
Freelance said:
€50,000 AIB one year fixed term at 2.50% AER
€50,000 AIB two year fixed term at 3.02% AER
€50,000 PTSB three year fixed term at 3.00% AER
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The PTSB 3 year fixed term is subject to DIRT.

Would the State Savings 3 year term at 4% be a better buy?
 
State Savings 3 year Bond is 4% in total over the three years, or 1.32% AER. Grossing this up to allow for DIRT its 2% AER. So PTSB are offering more.
 
I hate to keep saying it but one more advantage of State Savings is that you don't need a current account to have one. This adds probably €100 a year in fees to 'invest' in AIB or BOI.
 
Freelance said:
State Savings 3 year Bond is 4% in total over the three years, or 1.32% AER. Grossing this up to allow for DIRT its 2% AER. So PTSB are offering more.
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Please excuse my poor math and understanding of this.

How can 3% DIRT free after 3 years not be better than PTSB's 3% after 3 years that is subject to DIRT?
 
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