Interest rates over the next 12months

G

Golden Coin

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Will interest rates go up or down over the next 12month.
Speaking to bank staff , it seams interest rates will go down over the next couple of week.
What do do with a Lump Sum , fix now for a year at 3.8 or fix for 6months 3.78
Will rate go up or down? Advice from Bank Staff is yo fix now for 12months.

Can anyone help me make a decision. What would you do!

Thanks
 
Re: Interest rates ove the next 12months

The likes of the INBS is offering good rates, but they will have to be nationalised or merged and this will reduce rates. However over the next year the ECB will increase rates, so while the gap between the retail and ECB rates may shrink, the underlying rate will increase.
 
Re: Interest rates ove the next 12months

Speaking to bank staff , it seams interest rates will go down over the next couple of week
Click to expand...
Just wondering what bank are you referring to

Yes, there does seem to be expectations that deposit interests rates will fall. At least that's what I read in article in Irish Indepenent yesterday anyway.
 
Re: Interest rates ove the next 12months

I think the OP means the bank rates will go down. ECB rates wont I beleive, they will start increasing in Q1 or Q2 of next year.
 
Re: Interest rates ove the next 12months

Will rates increase?

Bloomberg News survery predicts that rates will stay the same until Q3 2010 when they will increase.

 

Interest rates might go up from the ECB but bank deposit rates will probably fall in Ireland after Nama is established. Fix in now for a better rate but beware you can't access your cash for that period. The risk is that the country may go bust and you can't get your money in a hurry.

I would | am going to keep my money variable so I can get it if the ship sinks.
 
Crabbybear,
If the sink ships,will we be kicked out of the eurozone,and have to revert back to the "Punt",the value of which will sink like a stone? Maybe we should be putting our savings into a sterling savings account or talking a plane to another eurozone country and opening a savings account there?
 

1) We can't be kicked out of the euro

2) Have you seen what has happened to sterling over the last 18 months ?
 
If we don`t manage to get our borrowing under control - @< 3% GDP -What happens then?
 
3 Years - An Post - 4.30%

Hope I'm posting this in the right place. Given the uncertainty of future deposit rates
is the above still attractive for someone who can't afford much hassle, is unlikely to be keeping a close eye on rates etc and prefers the old style way of saving, i.e. a post office book.

Thanks
 
Deposit rates are only to get higher from here. The ECB interest rate is at a very low level and it is expected to rise over the next 1-2 years.
 
justsally said:
3 Years - An Post - 4.30%

is the above still attractive for someone who can't afford much hassle, is unlikely to be keeping a close eye on rates etc and prefers the old style way of saving, i.e. a post office book.
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Hi Sally,

Yes, the rate is attractive for reasons you mentioned.

The downside is obviously your money is locked for a long period of time and that rates for 3 year term deposits are likely to go up at some point over the next few years.
 
Got to consider Irish deposit rates were high as banks wanted capital but after Nama these rates will fall further. Irish Nationwide offering 3.75% on deposit and lending on mortgages are alot less.
 
Many thanks for all the replies

Hiya Fungus - the Post Office deposit will not, at this stage, be the sum total of our savings so I guess I'll go with that. It just happens to be to one that has to be moved at this stage. I'll have to seek advice again when the Investec deposits need moving - again I'll be trying to balance ease of access etc. as per previous post, against best interest rates.

Cheers
 
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