first active 5.4 fixed or BOI 18 month bond

My mum was all set to move her savings (~100K) from Bank of Ireland to First Actives's 5.4% fixed rate deposit a/c.

While trying to withdraw her money from BOI they offered her an 18 month bond at 8% for the 100K.

She is confused now. Is the capital + interest guaranteed with the bond ? ( I presume they are gov. backed bonds ).

Should she take them up on this or go with First Active ?

I imagine the BOi product is this one if you want to check the T&Cs / specs:
[broken link removed]

8% over 18 months equates to an AER (annual equivalent rate) of 5.26% so what they're offering isn't as good on two levels as FA's offer:

1) The rate is lower
2) The funds have to be locked up for longer

See the Fixed Term Lump Sum Deposit best buys post.

Permanent TSB have a 20 month account with an AER of 5.89%.

thanks very much for the link and advice. I think she is going to say with the BOI despite the fact the rate is slightly lower and longer term. She has been with them for ages and is familiar with them. If it was my money I would be out the door !

modemnut said:

thanks very much for the link and advice. I think she is going to say with the BOI despite the fact the rate is slightly lower and longer term. She has been with them for ages and is familiar with them. If it was my money I would be out the door !

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sounds like my mother. Inertia has cost her thousands in interest over the years. I have even offered to do all the paper work etc for her and still she won't budge