invest small lump sum with rabo and save with ?

M

moneygrower

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Hi, can someone a bit more savy sift through this for me. We sold our home and are renting till we find a new home. Don't expect to need the equity (less than 20k) in less than six months but probably can't commit to something more long term so was thinking of putting it in the rabo six month term account, is this the best value account for us?
The other question is where to save on a monthly basis about €500? This would need to be a demand account but giving a few months notice would be no problem.
I've read through the key posts but I just get more muddled as I struggle to take in figures.
 
Yes, the Rabo 6 month term account is a good deal if you are willing to tie up your money for that length of time. It is possible that interest rates for savers will go up again shortly as it looks highly likely the ECB are about to announce increase interest rates for borrowers in the immediate future.
For regular saving, Anglo Irish seems to have the best rate at the moment paying 8% but I think you cannot touch the savings for the first six months. Have a look at the Financial Best Buy thread.
 
thanks I'll look into the aib regular saver account so.
Would it be a mistake to get tied up for six months if interest rates are set to go up?
 
Moneygrower, dont get confused between aib regular saver (7.30%, max €300 per month) and Anglo Irish Bank regular saver (8%, max €1,000 per month).
On your second point re ''a misake to get tied up for six months if interest rates are set to go up?'' this is a very good point. Personally, I am holding back for the moment. With ECB set to increase rates, some institutions may offer in excess of 5% without having to tie up for six months.
 
Or given that the ECB increase is pretty much expected / anticipated, it is possible that it is already priced into current deposit rates.
 
Some may already priced into current deposit rates but may have to think again - Anglo have upped the stakes with their 5.3% praemium deposit account announced to-day.
 
thanks old timer, I have always been confused by aib and anglo irish bank, are they no relation whatsoever? Bit strange to have the same name is it?
Maybe we will hold on for another week or two and do a bit more research before committing to the six month rate.
 
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