EBS Hike 5 Year Rate to 5.00% AER for Pensions Deposits Only

[Lightning]

Normally, when ECB rates go down, deposit rates do down. The opposite is happening. Obviously, the EUR crisis and inter bank funding issues are the main drivers of deposit rates currently.

Anyway, EBS/AIB are going to hike their EBS 5 year term deposit rate to 5.00% AER on Thursday for Pension deposits only. This is the highest deposit rate margin (375 bps) on term deposit rates over ECB base that I have seen in a long time. It's a great rate.

Obviously, people will argue that one should not lock for 5 years right now given what is going on with the Euro.

I have emailed a contact in EBS and they have confirmed that the rate hike will apply to pensions only. Normally, pension deposit rates are in line with retail deposit rates, this is not the case on this occasions.

I am not going to add this to the term deposit thread as it is not really there for pension deposit rates.

 

[andycole]

CiaranT,

I think I read a posting here within the Deposits section recently that some people were able to secure a 5% AER 5 year fixed term deposits. However if I read correctly its not generally advertised publicly by EBS, so possibly people with existing savings with them could ring up and ask.

 

[Lightning]

Interesting AndyCole.

This is the first time EBS/AIB have publicly listed 5% AER or be it on a restrictive basis.

 

[Brendan Burgess]

HI Ciaran

Normally, pension deposit rates are in line with retail deposit rates, this is not the case on this occasions.

Actually, I think that pension deposit rates are usually lower because the QFM or trustee don't seem to be as diligent as the consumer.

Obviously, people will argue that one should not lock for 5 years right now given what is going on with the Euro.

This is a really valid argument. I would not put money in any account other than a demand account, irrespective of the rate.

 

[pudds]

This is a really valid argument. I would not put money in any account other than a demand account, irrespective of the rate.

me neither not in these times, I'll never forget the pain and suffering I went true when NR were in trouble and looking at the queue's outside their branches, one day at at time now is my motto ~ access all areas!