fixed deposit term over. What next?

[serotoninsid]

My halifax fixed deposit term account ends in a couple of weeks. Have cash i don't need to access - and cant invisage needing to access for a couple of years.
Looking at the best buys thread, it seems the an post deals are the best - but given that its highly likely that rates will rise in 12 months, would i be better off just going with the best 1 year fixed deal available??

 

[oldtimer]

The answer is probably go with best buy Anglo @ 3.60% for 1 year. However, just compare it with An Post. With An Post saving bonds €1,000 will put €22 into your pocket after 1 year. With An Post saving certificates €1,000 will put €21 into your pocket after 1 year. (Remember both are DIRT free). With Anglo €1,000 will put €25 into your pocket over 1 year (remember Anglo liable for DIRT). With An Post you can withdraw anytime without penalty, so if interest rates go up, switch. Just remember interest on saving certs is added on the six month anniversary, bonds interest is added on one year anniversary. So if you withdraw after say saven months the certs will have accrued six months interest but the bonds will have accrued no interest.

 

[ardmacha]

Irish Nationwide have the highest rates, either their 6 month or 11 month terms. You might have a chance that rates will be lower in 6 months time, but you'd probably get a rate that would still average out as high as the 3.6% from Anglo.

 

[Lightning]

I am fairly certain that the Irish Nationwide 11 month term deposit rate offer is finished. I have been sent their new rates from Monday and that was not included.

I would go with Anglo for 1 year @ 3.60%, if you are depositing less than 100,000 EUR, as your term deposit will mature after the government guarantee has expired.

With ECB rates likely to rise towards the end of next year, I would not lock for more than 1 year.

The new best buys are below ...

Best Buys - Highest Term Deposit Rates

6 Months - Irish Nationwide - 3.33%
1 Year - Anglo Irish Bank - 3.60%

 

[ardmacha]

It would make sense that the 11 month rate was dropped, as it was designed to stay within the guarantee. However drat and double drat that the rates have dropped as I have INBS terms coming due this week.