Lock in at highest rate now?

I

iggy

Guest
With general opinion now that the ECB might cut interest rates is it time to stick savings (assuming over 100k) into Bank of Scotland Ireland`s 6.35% term deposit account?
I phoned them this morning regarding the deposit protection scheme and they said that at present all deposits up to 100k is covered and tomorrow they should be signing up to the government`s 100% protection cover.
Any thoughts?
 
I would agree. The day after the ECB dropped a .5%, I locked into a fixed term at 6%, transferring the funds from an ECB TRacker. I do not see anything attractive for over 12+ month terms.

Slim
 
Could someone please help me with a calculation please?

Which is the most financially advantageous route to take / what if any is the added interest earned so I can figure out if all the admin required (opening a/cs, moving funds etc) is worth it.

Current scenario
Eur300k in money mkt account with FA earning 2.25% > ECB rate ad infinitum (great at 6.5% but not dropping)

Options:
Scenario A:
  • Leave Eur 300k in FA for 12 mths earning perhaps 5.5% (if ECB rate drops to 3.25% as anticipated)
Scenario B:
  • Leave Eur100k in FA money mkt a/c (don't want to close out totally and lose the facility)
  • Place Eur100k at 6.35% for 6mths as per OP's post
  • Place Eur100k at 5.9% for 12mths with Halifax
I'm trying to get a handle on what the interest earned under the 2 scenarios would be and if there is additional income to be earned, is it sufficient to warrant the admin required.

Thanks in anticipation
S
 
Not a bad idea! Kinda forgot about falling rates!!!

Only one that fell after the ECB rate drop was AIB 7 day Notice afaik?
Anglo premium is a tracker rate.

No change in the FA ESavings/Halifax Flexi (this is guaranteed though?)


Do these accounts rollover? i.e. say Halifax 3 month account, after 3 months is it reinvested?
 
iggy said:
With general opinion now that the ECB might cut interest rates is it time to stick savings (assuming over 100k) into Bank of Scotland Ireland`s 6.35% term deposit account?
I phoned them this morning regarding the deposit protection scheme and they said that at present all deposits up to 100k is covered and tomorrow they should be signing up to the government`s 100% protection cover.
Any thoughts?
Click to expand...
So now it looks like Irish Nationwide is the best bet with Bank of Scotland refusing the scheme (amounts over €100,000 not covered in the event of a meltdown) especially considering that €100,000 is the minimum investment required to open the high interest accounts.
I think Irish nationwide is 6% now.
 
Bank of Scotland are not joining the Irish Government Guarantee scheme. I would be very concerned if staff are giving the impression to potential Customer's that they are.
 
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