INBS & Anglo - did I make mistake?

I have invested 50K in INBS (1Year Fixed) and applied for Anglo before discovering this forum. I intend to put 50K (1Year Reward) in Anglo.

I understood that my deposits are safe as they have joined ELG scheme. Is it likely that I am going to get interest as well after 1 year?

Did I made a mistake? Should I cancel Anglo now? Is it allowed? I have submitted the form and they have my passport, pps details etc.

I also have 30K more that I want to put in Nationwide UK EasyAccess. Is this good choice?

Please advise me. Thank you so much.

Welcome to AAM, sandra1. If you have a look at the key post on safety of Term Deposits with INBS and Anglo, you'll see that — depending on the date of the INBS deposit — your capital is guaranteed in full for 5 years. Others here will offer opinions as to how certain you are of getting the interest due at the end of the term.

As regards cancelling the Anglo deposit, should you choose to — I'm pretty sure that there is a statutory 'cooling-off' period on fixed term investment products. Maybe 9 or 14 days? Again, others more qualified to comment will surely reply here soon.

You deposit is state guaranteed. There are other threads where posters discuss just how safe the state guarantee is.

Anglo allow withdrawals during the term but reduce the interest rate significantly.

Nationwide UK offer 3.30%, a best buy rate for instant access and have a good credit rating.

The decision is yours. Personally, I would not have all my money in INBS or Anglo.

I don't need to withdraw 100K for a year and I choose these 2 as they have the best interest rate.

I thought that there is no much difference once the bank has ELG scheme. Then I see that thread drMoriarty refers to, but I don't understand exactly. I am very unexperienced. What is "personal hassle"?

I would appreciate to give me your opinion how would you split this? Should I proceed with Anglo? And how much to put in?
DrMoriarty, why it is not certain that I am going to get ineterest - is it certain in any bank? What happens when bank goes out of business - am I stil going to get deposit+interest?
CiaranT, when you say "all my money" do you mean all 130? What is wrong about them? What is the "paremeter" to choose a bank? I just wanted to have the best value for money and thought there is no much difference between any bank in ELG scheme. I wanted to put 30 in Nationwide UK. Please advise me as I am very unexperienced. Thank you!

Hi sandra1.

As I said, the guarantee means that your capital is secure, but not whatever interest you'd normally be due on top of your original sum.

I have some money with Anglo too, but in a demand a/c on which interest is calculated daily (at 3.10%) — not a term deposit. I don't know any more than the next guy about what's likely to happen in the future, and I really can't advise you on whether or not you should pull out of the new deposit with them, but I personally would be uneasy about leaving as much as €50K with them.

Why not spread it around a bit more, and maybe (as CiaranT suggests) look at the Nationwide UK offering at 3.3%? Or, if you can afford to commit some of it for more than a year, look at buying An Post Saving Certs or something?

Give the thread another couple of days and you may get other suggestions too.

All the best,
DrM

Dr M,

thank you so much. Does it mean that if INBS/Anglo goes out of business in 6 months I am going to get deposit + half interest? Then I can re-invest it somewhere else?

I have 130, and I wanted to put 30 in Nationwide UK EasyAccess. Should I put more there or open 1 Fixed and 1 EasyAccess with NationwideUK? Why is the interest on Fixed Term less then EasyAccess?
I can not commit for more then 1 year.

Clerk in INBS was confident that they are not going to close. He was very kind.

sandra1 said:

Dr M,

thank you so much. Does it mean that if INBS/Anglo goes out of business in 6 months I am going to get deposit + half interest? Then I can re-invest it somewhere else?

Click to expand...

No, my concern would be precisely that the ELG scheme guarantees only your capital, and that you would not be compensated for the loss of your interest. I'm open to correction on this. Also, in the event you had to call in that guarantee, you might be some time waiting to get your hands on your money.

sandra1 said:

I have 130, and I wanted to put 30 in Nationwide UK EasyAccess. Should I put more there or open 1 Fixed and 1 EasyAccess with NationwideUK? Why is the interest on Fixed Term less then EasyAccess?

Click to expand...

The way in which interest rates are calculated depends on lots of factors. It might seem illogical to offer a higher interest rate on a no-strings, demand product than on a 1-year (or higher) fixed term, but it's the case with many institutions at the moment. Best thing you can do is look over the three different best buys threads for savings:

Best deposit rates (lump sum savings)
Best deposit rates (regular savings)
Best deposit rates (fixed term lump sum savings)

...and consider your options and your own particular needs. Nothing at all wrong with having several smaller sums placed with different institutions; once you assemble the necessary paperwork to open an account with one, it doesn't take all that much extra effort to open others.

You have a sizeable sum of money there, you want to keep it safe, and you say you need access to it at the end of a year. Don't be rushed into anything, and don't rely solely on advice you get on an internet forum (even AAM! ). Above all, don't rely on anything you're told by an employee of a bank or building society, or their tied agents and brokers on commission.

sandra1 said:

Clerk in INBS was confident that they are not going to close. He was very kind.

Click to expand...

I'm sure he's a perfectly honourable chap, but it is his job is to sell you INBS's products. Short of telling you outright lies, he would be failing in his duty to his employer if he said any different.

Good advise Mr. M.

The compensation scheme in the UK pays out for both interest and capital, which they did with IceSave. I think it is the same here.

Is it better choice to open 2 accounts in Nationwide - 1 fixed and 1 EasyAccess? But what is the max sum in total that is guaranteed?

50,000 GBP is guaranteed, about 60,000 EUR.