Fixed or variable?

[Aloysius]

Reinvesting a sum with PTSB, they are offering 2.45 fixed for a year or 2.5 variable. Just wondering if it is expected that interest rates will drop much over the next 12 months?

 

[sandra1]

I have similar dilemma and would appreciate some advice from smart people on this forum.
I have fixed term savings account which is about to mature. I don’t mind to lock it again, but all interest rates on fixed term accounts are lower then demand/instant account rates.
Would it be better to put the money on instant access deposit account and wait?

 

[PolkaDot]

Nobody knows what is going to happen

 

[Lightning]

Reinvesting a sum with PTSB, they are offering 2.45 fixed for a year or 2.5 variable. Just wondering if it is expected that interest rates will drop much over the next 12 months?

The ECB have said that rates will stay low "for an extended period". However, improved economic conditions mean rates may not stay low for many years to come.

Irish banks have greatly improving loans to deposits ratios, less ECB and CBI dependence and improving liquidity. They need deposits less than they previously did but still have some way to go to completely end their liquidity dependence on the central banks.

Based on this, my guess is fixed rates will slowly decline over the next year or so. However, the decline will be over a lower magnitude than what we have seen this year

If you want the best return, I would personally choose 2.45% fixed for 1 year over 2.5% variable. Just a good guess as to the best return.

but all interest rates on fixed term accounts are lower then demand/instant account rates.

Not really unless you are talking about regular saver rates.