What I wanted to point out is that even in a more competitive market customers need to inform themselves. Not every account is offering a good rate just because you have competition in a country. Just find an offer of 0.5 per cent in the first bank I checked in such a country.
Deposit rates set to increase - Finance Minister
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Djimi Traore
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I never said I expected anything of the banks, I stated it's depositors, media and politicians that should be applying the pressure. The best on-demand rate is 0.1% at the moment which is pathetic and I think you'd struggle to find worse anywhere else. I know I have a savings account in Australia that is earning 5.5% on demand at the moment. I don't expect the same here but something at least above 1% would be a start. The way the media/politicians are presenting things this week it's patting themselves on the back as if they've "won" the battle with the banks and there's no issue anymore!
@Djimi Traore Agree with the sentiments you express in post #17 and #22. I’ve said similar on a number of occasions. Regarding the press, to be fair The Irish Times have run a number of articles over the last couple of months, pointing out the lag in reposit rate increases by State Savings and our retail banks etc. Charlie Weston in the Independent also had one such article. These may not have been as hard hitting as they should have been but its something. I would also criticise the opposition, who have been all but silent on the matter. When the current MOF was in opposition he issued some hard hitting attacks on the government of the day when Prize Bond rates were decreased, hard hitting statements which I know one poster here fed back to him recently, suggesting he eat his own words. We are also suffering from the absence of any recognised Consumer Protection voice willing to speak on behalf of depositors and savers. And as I have suggested here on a few occasions, there is nothing to stop anybody here contacting the MOF (and their TDs and the Personal Finance corespondents of the main media outlets) with their views. I have done so and I know that a couple of others from here have done the same.
podgerodge
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I emailed John McGuinness (as he had been vocal on deposit rates in the media recently) to ask him about the focus on banks rather than state savings in terms of having a go at the banks. I copied Simon (banks are laggards) Harris.
John McGuinness response last week:
Thank you for your communication regarding the above. The Finance Committee have arranged to discuss all of these issues with representatives of the Banks, the NTMA and the Central Bank. The meetings are being scheduled.
No response from Harris.
John McGuinness response last week:
Thank you for your communication regarding the above. The Finance Committee have arranged to discuss all of these issues with representatives of the Banks, the NTMA and the Central Bank. The meetings are being scheduled.
No response from Harris.
NTMA increases rates for State Savings products
NTMA increases rates for State Savings products Rates on new fixed term products to increase. The total tax free return on the new fixed rate products are as follows: 3-Year Savings Bond from 1.0% to 4.0% 5-Year Savings Certificate from 5.0% to 9.0% 6-Year Instalment Savings from 5.5% to 10%...
www.askaboutmoney.com
I wonder will we see a big enough transfer of funds out of the banks and a reaction to same by the banks later this year. The 10 year bond at 22% tax free could be appealing to many who can lock away. Even the humble post office deposit account isn't bad at 0.75% before dirt. Could appeal to many who are scared or incapable of the perceived red tape involved in going the bunq's etc of this world.
22% tax free is what most people would zone in on and not the AER I would imagine.
If the speed at which the average saver has embraced Raisin is anything to go by I wouldn't imagine Irish banks have anything to be concerned about.
Irish banks may have a concern though if people switch to An Post offerings though inertia might prevail.
There are a large number of people with access to the Post Office Savings Bank, for whom Raisin, BUNQ, Advanzia et al are totally inaccessible.
It is, but to compare like with like its equivalent to an AER of 3% from the banks when DIRT is factored in. No bank is offering anything like that for a ten year term, with capital guarantees and the option of early withdrawal at any time.
To be clear while embracing a little known bank or 2 via the internet is a step too far for some I think the much bigger reason for this not happening will be laziness. I'm happy to be proved wrong of course.
The other thing to consider is the Government has no interest in undermining the banking system. It's fine all this window dressing but if a significant proportion of household deposits were to leave banks in the direction of the post office you can bet the post office rate would be cut pretty quickly.
podgerodge
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Indo today...Good to see the likes of Raisin being mentioned by Charlie Weston, but would like to see on demand EU bank rates included too...
www.independent.ie
Brendan Burgess, founder of the Askaboutmoney.com website, said that despite the flurry of announcements this week the savings rates on most of the deposit products had hardly changed.
He said the announcements by AIB, Bank of Ireland and Permanent TSB of headline-grabbing 3pc savings rates were misleading.
This was because the 3pc rates apply to only a tiny number of savings products and came with strings attached.
These savings products had restrictive terms and conditions and caps on the amount of money that can be put into them to qualify for a 3pc rate.
"The rates have hardly changed on the 94pc of deposits which are in demand accounts and current accounts - this means the 3pc is completely misleading,” Mr Burgess said.
Charlie Weston: Yes, savers have seen rates rise but banks are still coining it on deposits
Rises in the interest paid to savers in the three main banks and the interest paid on new State Savings schemes this week do not go far enough in the view of most consumer advocates.
www.independent.ie
Brendan Burgess, founder of the Askaboutmoney.com website, said that despite the flurry of announcements this week the savings rates on most of the deposit products had hardly changed.
He said the announcements by AIB, Bank of Ireland and Permanent TSB of headline-grabbing 3pc savings rates were misleading.
This was because the 3pc rates apply to only a tiny number of savings products and came with strings attached.
These savings products had restrictive terms and conditions and caps on the amount of money that can be put into them to qualify for a 3pc rate.
"The rates have hardly changed on the 94pc of deposits which are in demand accounts and current accounts - this means the 3pc is completely misleading,” Mr Burgess said.