PostBank

Is Postbanks secure fixed saver account the best on the maket where you can get 21% interest after 5 years. Please advise as I have a lump some which I would be willing to tie up for a few years.

I think you are confusing Postbank with An Post. While both are associated with An Post they are completely different with saving products. I think you are referring to An Post Saving Certificates which pay 21% if left for the full term of 5.5 years. They are the safest and best on the market at the moment when one takes into account their DIRT free status (they work out at 4.70%), but remember to get this top rate they must be left on deposit for the full 5.5 years. They have been discussed at length on another recent thread here on Askaboutmoney.

Hi there pennies,

In response to your post, you are absolutely correct in that we have a secure fixed saver account which was recently launched. Your figure of 21% over 5 years is also correct - this is the gross rate, which means that the AER is 3.88%.

Just so you have your options open our other terms and rates are as follows:

1 Year: 2.00% AER
2 Year: 2.02% AER
3 Year: 3.53% AER
4 Year: 3.55% AER
5 Year: 3.88% AER

You can find any other information you might need on www.postbank.ie or feel free to give us a call. Alternatively feel free to post here and we'll do our best to get back to you.

Regards,

Postbank

Is the DIRT Paid on these Rates?
As with P.O. Bonds and Certs.

Hi TonyBoy,

DIRT is paid as normal on these rates.

Regards,

Postbank

Tony/Pennies,

As mentioned above, If you want a 5 year term deposit you are better off with An Post (no DIRT) rather than Postbank (with DIRT).

From the best buys thread ....

Best Buys - Highest Term Deposit Rates

6 Months - Investec - 4.04%
1 Year - Investec- 4.50%
2 Years - Anglo-Irish - 3.50%
3 Years - An Post - 4.30%
5.5 Years - An Post - 4.70%

Click to expand...

Apologies to Postbank - I wasn't aware you had launched a 5 year secure savings plan. I have now read your terms and conditions and, in my opinion, saving certificates are a much better product. I have two saving certificates maturing later this month and I intend re-investing in certs. Postbank, please try to persuade me otherwise. Am I correct in saying interest rate is better, guarantee is better and withdrawal conditions are better. Also, could I ask for clarification on your Terms of Business - Protection Schemes. Your website states you are ''a member of the Deposit Protection Scheme of the EC (1995) which guarantees 90% of saves total funds, subjecct to a maximum compensation of €20,000.''

Hi Oldtimer,

In response to your post, I have tried to clarify any uncertainty you have below:

· Regarding the deposit protection issue, Postbank is one of the seven institutions covered by the government guarantee, and all deposits are 100% guaranteed until 30th September 2010. If you were to open an account with a term that would run past this date, you would be guaranteed for up to €100,000 under the deposit protection scheme after the guarantee expires. You can see more information on the Financial Regulator’s consumer website at this link: http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=100&nID=153&aID=620
· Regarding interest rates, we will always try to offer the best interest rate possible to our customers, but it is our policy not to offer unsustainable headline rates. Our rates for the Secure Fixed Saver are competitive while remaining sensible from a business sense.
· For your own information, two additional features of our Secure Fixed Saver is the ability to make electronic transfers into the account as well as the option of receiving interest annually, which could be useful to someone who wishes to draw an annual income from their funds. It’s also worth pointing out that the maximum amount that can be put into savings certificates is €120,000 per customer, so those who are lucky enough to have more than that to deposit may need to look elsewhere!
· Finally, in regard to withdrawal conditions, our Secure Fixed Saver is not intended as a product that would have demand access. If you needed to make a withdrawal from the account, it is possible but it would incur a breakage fee. Details of this fee are available in the Secure Fixed Saver terms and conditions at www.postbank.ie. We do have a demand offering called Premium Saver which offers interest of between 1.7% and 3% for amounts over €10,000, which would be more suitable for those who need access to their funds.

I hope the above helps you with your decision. Both products are very good products in their own right, and whatever your decision I hope we can perhaps do business with you in the not too distant future!

If there’s anything else I can help you with don’t hesitate to post here and I’ll do my best to get back to you.

Regards,

Postbank