First Active e-savings account
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GeneralZod
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They must have someone manually lugging the electrons about 
Well, the thread is called "First Active e-savings account" so I thought 'what' would be obvious.
I guess it doesn't like that I'm in present residence less that 2 years.
Yes - but several other accounts were mentioned before you posted hence the confusion.
Maybe that's it. I'll wait and see if my stuff comes in the post hopefully tomorrow.
Yes got onto the staff - problem was because I changed residence.
However, apparently the application process does some implicit actions.
I've been told that it has initiated some forms to be sent to me requesting some form of ID - which is fair enough even though I already have my mortgage with them.
Pity the online form does'nt tell you that - the impression I got was that my application was stopped dead in its tracks.
It's not completely clear what happens if you have €15,001 in the account.
Do you still get 5.22% on the first €15,000, or 4.07% on the whole balance?
For example, suppose you start with €15,000.
Do you still get 5.22% on the first €15,000, or 4.07% on the whole balance?
For example, suppose you start with €15,000.
After interest is paid the following month, you have more than €15,000, so could be on the lower rate. I wonder if that's the hidden catch... (still a good deal though, once you know about it!)
IrlJidel I moved house 2 months ago and put this on the form, they asked for my previous address and they let me fill in the application and said it was sucessful and the documents would arrive in the post. Mhh will be interesting to see if there is something wrong when it arrives.
This question originally arose with Rabo too and they gave the full 5% on €10K and the lower rate on the balance. I suspect that it will be the same here but worth verifying to be sure.
Happy Girl
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Yep I just got the same. Ridiculous in this age of "Internet". Can somebody clarify for me if this is a lump sum investment or a regular savers account. Can I just lodge 15k into it and not make monthly contributions?
Happy Girl
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Thanks Clubman for such swift reply. Am I correct in thinking that it would it be prudent to put 15k into this account given than there appears to be no better lump sum deposit account on the market.
If you consider a deposit account the best home for your money then this is a good home for it. You may be able to improve the returns by depositing the €15K and then drip feeding it into a suitable regular saver account at c. 7% but you'd need to choose the latter carefully to suit your needs as the terms & conditions and restrictions and restrictions (e.g. penalties for not keeping up regular contributions or withdrawing money "early") vary a lot. Check the Financial Best Buys forum for more on lump sum, regular saver and fixed term deposit rates on offer.
I drip fed into a regular saver account with Anglo Irish Bank (currently 7%) 12 months ago and have just received the interest for that 12 months - €276.52 into my pocket. This would equate to the lump sum of €12,000 invested at around 3% before DIRT. I wonder did I really make that much by dripfeeding. On the upside I am hoping the €12,000 will now earn at least 7% for the next 12 months.
H
HughDenman
Guest
We have some money in a Northern Rock account; when the First Active eSaver was announced I was interested to see how splitting your money between three of the better deposit providers would affect the overall return after say 10 years, versus just leaving it all in Northern Rock. I did out a little spreadsheet, viewable here: [broken link removed]
I factored in DIRT by reducing the CAR by 23% (for example, I figure that the Northern Rock rate is 1.03465 after DIRT). & I assumed the rates are fixed over the ten years (quite unlikely?).
With an initial amount of 50k I think you'd make an extra 2.4% or so---over the 10 years. If you had 30k total at the start, you'd come out with an extra 4%. With 100k to start with, you'd get an extra 1.2%.
Obviously, the less money overall, the greater the proportion earning higher interest (assuming 15k First Active + 10k Rabo), so the greater the advantage in splitting the money over the three providers.
I have no financial training since Junior Cert business studies. Bear that in mind if these figures are of interest!
Are there any other advantages to splitting across the three providers, beyond the potential increase in return?
Also, am I right in thinking that 2.4% over ten years translates to (10th root of 2.4) = .24% extra in the effective interest rate?
I factored in DIRT by reducing the CAR by 23% (for example, I figure that the Northern Rock rate is 1.03465 after DIRT). & I assumed the rates are fixed over the ten years (quite unlikely?).
With an initial amount of 50k I think you'd make an extra 2.4% or so---over the 10 years. If you had 30k total at the start, you'd come out with an extra 4%. With 100k to start with, you'd get an extra 1.2%.
Obviously, the less money overall, the greater the proportion earning higher interest (assuming 15k First Active + 10k Rabo), so the greater the advantage in splitting the money over the three providers.
I have no financial training since Junior Cert business studies. Bear that in mind if these figures are of interest!
Are there any other advantages to splitting across the three providers, beyond the potential increase in return?
Also, am I right in thinking that 2.4% over ten years translates to (10th root of 2.4) = .24% extra in the effective interest rate?
GeneralZod
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Your conclusions make sense.
DIRT is 20% not 23%.
Over 10 years it would be better to put the money in the stockmarket, I take it this is a purely theoretical exercise.
Having it spread amongst 3 providers reduces risk a fraction. I think you're only guaranteed up to 20k if a bank goes bust. Reduces the risk of a bank error/strike (as used to happen) preventing access to your funds.
Yes, 10th root of 1.024 is 1.00237 approx.
DIRT is 20% not 23%.
Over 10 years it would be better to put the money in the stockmarket, I take it this is a purely theoretical exercise.
Having it spread amongst 3 providers reduces risk a fraction. I think you're only guaranteed up to 20k if a bank goes bust. Reduces the risk of a bank error/strike (as used to happen) preventing access to your funds.
Yes, 10th root of 1.024 is 1.00237 approx.
B
brieli
Guest
Clubman
Could you please show by illustration how 12 monthly deposits of €1K at 7% gross CAR is not the same as €12K @ 7%. (You can obviously make more money by depositing at c. 5% and then drip feeding into an account at c. 7% than just leaving it in the 5% account)
We have a lump sum deposit of 10k plus a monthly savings of €250 p.m. We were going to put the €10k into First Active and the €250 p.m. into the EBS at 7% car. However if I understand you correctly we should put the €10k into First Active as well as the €250p.m. into the First Active. When it reaches €15k then drip feed into the EBS at 7%. Can you please advise if this is correct?
Thank you
Could you please show by illustration how 12 monthly deposits of €1K at 7% gross CAR is not the same as €12K @ 7%. (You can obviously make more money by depositing at c. 5% and then drip feeding into an account at c. 7% than just leaving it in the 5% account)
We have a lump sum deposit of 10k plus a monthly savings of €250 p.m. We were going to put the €10k into First Active and the €250 p.m. into the EBS at 7% car. However if I understand you correctly we should put the €10k into First Active as well as the €250p.m. into the First Active. When it reaches €15k then drip feed into the EBS at 7%. Can you please advise if this is correct?
Thank you
G
gordongekko
Guest
Would you not be better to lodge the 10k into first active and then to put 1000 per month into ebs from the first active account and the 250 into the first active account every month.