Investec Bank - New Rates?

Anybody know the New Rates for Deposit 1 year with INVESTEC BANK?
They were to change yesterday

4% AER...according to their website.

Thanks.

The best buys thread has been updated.

Best Buys - Highest Term Deposit Rates

6 Months - Investec - 3.75%
1 Year - Investec- 4.00%
2 Years - Anglo-Irish - 3.50%
3 Years - An Post - 4.30%
5.5 Years - An Post - 4.70%

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Would putting money away for 3 or 5 years at these rates be risky now?

I am taslking about the fact that many people have said that interest rates will rise as soon as there is any sign of an economic recovery, since they are rock bottom at present.

Surely if they do start to rise then you might have committed your money to a lower rate than the market could be paying out?

Impossible for anyone to confidently predict what the situation will be in 3 to 5 years time....just read up as much as you can and make your own decision.
Personally I would only lock in for a maximum of 12 months, but that`s just my opinion.

RMCF said:

Surely if they do start to rise then you might have committed your money to a lower rate than the market could be paying out?

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Yes, if ECB rates do rise, although in the short term this is not likely, then you are likely to see higher returns for 3 year and 5 year term deposits.

why lock into a deposit rate when its most probably at its lowest? ECB rates are as low as they are likely to go.

When rates are low, that is the time to fix for loans etc..not deposits.

Obviously, thats just my own opinion, I would be the same as Iggy - max 12 months fixed for deposits.

RMC - If you are referring to 'Best Buys' 3 and 5.5 year products (An Post) it is well to remember your money is not locked into a fixed term with these An Post products, i.e. Saving Bonds and Saving Certiicates. These products can be withdrawn anytime without penalty. In fact interest is added annually, on anniversary, with Saving Bonds and twice annually, on six month anniversary, with Saving Certificates. So, if next year ECB increase rates and better products come on stream, just withdraw the bonds or certs with the interest added. It is important to remember you are not locked in.

just a follow up on oldtimer's post, if an post dont lock you in for 3 or 5.5 yr terms, and pay intrest yearly, and you can withdraw without penalty, doesn't that make their rates the best for one yr term then so?

Good question.

I have had a read of the T&C's here. They state that If you withdraw before the first year is up then you get zero interest. So it is clearly not a best buy for a 6 month term deposit. Also, interest is not paid for the month that a withdrawal take's place.

If you can withdraw the money at any stage after the first anniversary is up then why would anyone choose the 3 year rate when the 5.5 year rate is higher ???

Seantheman - to get the max 'best buys' interest the money must be left for the full 3 or 5.5 year term. The point I am making is, with Saving Bonds and Saving Certs, money is not locked in and can be withdrawn anytime without penalty.
Fungus - Saving Bonds 3 year rate is slightly higher. For example, €1,000 invested in Saving Bonds is worth €1,100 after 3 years, €1,000 invested in Saving Certs is worth €1,080 after 3 years. If a saver can leave money on deposit for 3 years but no longer Bonds are better (average interest rate of 3.23% DIRT free per annum). If a saver can leave money on deposit for 5.5 years Certs are better (average interest rate of 3.53% DIRT free per annum).