Business Deposit

Our company, which is a not for profit limited company has approximately €410,000 in a 30 day access account earning 2.485% p.a.

Could the company make a better return elsewhere.

The principal has to be guaranteed. The money is not needed on a short term basis eg 6- 12 months.

Any suggestions ?

Irish Nationwide 12 month Fixed Rate Interest Bond pays 3.5% interest gross, and is available to charities. I'm not sure if that would include a not for profit limited company.

Gervan,

Thanks for that- I have sent them an email explaining that we are a not for profit company but not a charity either. Will let you know how I get on.

Agreed, the 12 month INBS rate will give you the best return if you are happy to lock for one year.

The INBS rate is open to businesses.

INBS- came back with a rate of 2.9% fixed for one year ?
They did clarify that they are open to businesses.

You should be getting 3.50% for a one year term deposit with INBS.

See

If you working in a Not for Profit business what is the point in looking for a better return ? This appears counterproductive. You might be better off placing the entire amount in Prize Bonds.

Fungus: I will go back to them- thanks

Mercman: I advised that the principal was belonging to a not for profit business to distinguish it from a personal " nest egg " as I assumed that the rates would vary for both.

Although a not for profit business I do feel it incumbent on me (Director) to earn the most interest so that membership of the business/company can benefit in the long term. Yes/No ?

10amwalker said:

Fungus: I will go back to them- thanks

Mercman: I advised that the principal was belonging to a not for profit business to distinguish it from a personal " nest egg " as I assumed that the rates would vary for both.

Although a not for profit business I do feel it incumbent on me (Director) to earn the most interest so that membership of the business/company can benefit in the long term. Yes/No ?

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Yes of course, just because it is a not for profit organisation does not mean that it should not be sensible with its money. Our government could learn from that lesson.

+1, yes, as a director of a non profit organisation you still have a responsible to your stakeholders.

You should maximise your interest return, keeping in mid risks, for your organisation.

INBS have come back to say that the 3.5% rate is only available to personal customers and not to limited companies !!!!

They are offering 2.9%.

The T&C's of the INBS Fixed Saver product very clearly state that the product is open to business customers.

The Fixed Term Account is available to residents and
non residents of the Republic of Ireland. The account is
also available to charities and corporate customers.

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These T&C's are stated under the web page which states that the rate is 3.50% for a 1 year term deposit. There is no suggestion that business customers get a lower rate.

I suggest you quote their T&C's back to them and don't accept no for an answer.

Fungus,

Many thanks... interesting chain of events..

Contacted Treasury again and they confirmed that the rate applicable was only 2.9% as we were a corporate client.

Yesterday I sent them a link to your posting and received a call this morning advising me that they would honour the 3.5% fixed for 12 months as the Terms and Conditions on the website did not state that corporate clients are excluded from this rate. Their website is going to be changed now to correspond with what happens in their branches.
Seemingly if you go into an INBS branch the rate sheet that they use advises all that INBS treasury needs to be contacted directly for the daily corporate rate and treasury would then give a corporate rate which is 2.9 % currently.

So as you rightly pointed out to me the terms and conditions on the INBS website did not state that corporate clients were excluded from the 3.5%.

The difference based on €410,000 for 12 months at 3.5% versus 2.9% is €2,460.
So thank you very much for your excellent advice.

Yet another very satisfied user of Ask about Money !!!!!!

Great result. Glad to have helped, delighted that there will be a lot more cash in your pocket.

Even better, we have together forced a bank to review their T&C's and make them clearer. Happy days.

INBS have changed their website ...

Rates quoted above are for Personal Customers only. Corporate rates are quoted on a daily basis by the Treasury Department on 01-6096680.

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