Deposit interest rates going up or down?

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I have money on deposit in a few different institutions, none of it locked away for more than 12 months. I have been approached by AIB to lodge money in a 3 year 11 month deposit that guarantees 4.1% per annum and possibly up to 6.2%. The big selling point is that current interest rates available are artificially high and will be decreasing over the next number of months/ years. Anyone have any advice as to whether this is true or just sales spin? Thanks
 
There is now a lot of competition for deposits. I personally can't see this changing in the short or medium term. IMHO I would be reluctant to tie up money in an Irish Bank at the moment, given the state they are in. Have a look at "the best buys" section on AAM to see what offers are available before you decide. You might also review some of the posts on people who have opted to deposit in non Irish banks to help you decide what's best.
 
Thanks horusd, the best rates seem to be 3-3.25% in the 'Best Buys' section. I won't need access to the funds for a few years so could probably put it away for longer if there was a better rate to be had. In that context 4.1% seems attractive to me, depending of course on what happens to deposit interest rates in the meantime.
 
Rates will surely go up once European Central Bank start increasing rates, probably in the near future. They have already expressed their concern at the recent rise in inflation in the Eorozone.
 

Locking your money for 3 years 11 months in AIB may be be the best option. Who knows what will happen to AIB over the next 4 years.

ECB rates are likely to go up over that period also.

I suggest KBC @ 3.50% @ 1 year and then review your options.

I have never heard of the AIB product that you mention.
 
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