Putting all savings in NTMA?

[messyleo]

That joke just flew on by!

Too subtle, you should have said currant account

 

[fayf]

State savings rates have been drastically reduced, effective January 24th

10 year bond,now paying 10% (was 16%)

5 year Saving Certs paying 3 % (was 5%)

Ireland State Savings Products | Ireland State Savings

Ireland State Savings products include Fixed Term Products, Regular Savings Products, Deposit Accounts and Prize Bonds

www.statesavings.ie

 

[Sarenco]

Pretty savage cuts alright.

Mind you, the yield on 10-year Irish Government Bonds is currently negative (-0.19%) so retail investors are still getting a reasonable deal.

Also, inflation (CPI) is currently negative (-1.0%).

 

[jpd]

Not much anyone can do right now - too much savings in the world, not enough investments. Well, apart from governments throwing money at anything and everything that moves or, indeed, doesn't

 

[RedDevil]

0.59% on Savings Certificates where I have most of my money and no decent alternative investment regime

 

[fayf]

Its not an unexpected decrease, but it means one has to take some risk. Have a few 10 year state savings tranches, at rates between varying 50 % and 16%, but 10 %, is just too low, so have to look at something else for going forward.

 

[MugsGame]

I dont recall any bank offering c. 7.5% then

I do, perhaps it was on a regular saver account though.

 

[MugsGame]

Checked my Ombudsman complaint, Irish Nationwide had a regular saver paying 7.35% in 2008. Admittedly it was a building society not a bank, but I also recall getting high 1 year fixed rates from Anglo Irish and BOI around the same time.

 

[ATC110]

Likew

Checked my Ombudsman complaint, Irish Nationwide had a regular saver paying 7.35% in 2008. Admittedly it was a building society not a bank, but I also recall getting high 1 year fixed rates from Anglo Irish and BOI around the same time.

Likewise

 

[MugsGame]

Checked some of my Anglo records; I had a 6% 1 year rate with them in 2009 and an 8% regular saver in 2006.

 

[NoRegretsCoyote]

I also recall getting high 1 year fixed rates from Anglo Irish and BOI around the same time.

I was a heavy saver from 2008 onwards but from memory the best rates only ever started with a four.

 

[ATC110]

Checked some of my Anglo records; I had a 6% 1 year rate with them in 2009 and an 8% regular saver in 2006.

You keep records for a long time! I keep mine for the Revenue six year rule

 

[MugsGame]

I was a heavy saver from 2008 onwards but from memory the best rates only ever started with a four.

Sorry to hear your memory is failing you

I have a leaflet from Irish Nationwide and statements from Anglo which confirm regular saver and fixed term rates in the 6-8% range I've quoted earlier. Rates will obviously have been lower for demand accounts.

 

[NoRegretsCoyote]

@MugsGame

We're these new rates on offer in 2008 or were you taking advantage of existing products?

My own files are buried deep but I am pretty sure I had both a one-year term deposit with Anglo and a regular saver opened late 08 or very early 09.

I think neither topped 5% but indeed memory could be faulty! Rates might've been different pre and post guarantee of course.

 

[MugsGame]

@MugsGame

We're these new rates on offer in 2008 or were you taking advantage of existing products?

My own files are buried deep but I am pretty sure I had both a one-year term deposit with Anglo and a regular saver opened late 08 or very early 09.

I think neither topped 5% but indeed memory could be faulty! Rates might've been different pre and post guarantee of course.

Most of my records are digital; I have dated scanned documents and/or emails to/from institutions which confirm the following new account openings:

Jan 2009 - 6% 1 year fixed with Anglo (may have been lucky with my timing, Anglo email advises rate for new a/cs was due to drop to 5.25% on 21st Jan)
Jun 2008 - 8% regular saver with Anglo
Apr 2008 - 7.35% regular saver with Irish Nationwide

Also the following aberration:
Apr 2011 - ~4.5% 2 year fixed rate deposit opened with BOI (3% paid at end of year 1 and 6% paid at end of year 2 if left for second year)

Their deposit rates being above their loan rates should really have been a sign to short these lenders ... I was such a rate tart, I've found paperwork from banks I'd forgotten existed, e.g. NIB.

 

[NoRegretsCoyote]

@MugsGame

Memory is indeed fickle.

I dug out an email from Anglo from July 2009 referencing a 5.0% rate for regular saving.

 

[cbreeze]

Checked some of my Anglo records; I had a 6% 1 year rate with them in 2009 and an 8% regular saver in 2006.

Back in the day you could keep maturing An Post savings with them for years after they matured - they paid the rate applicable at the time. I had some back in the 80s and kept them until 2001 when they stopped holding them.

 

[cbreeze]

'Grow your money with daily interest
Maximise your money with as much as 0.65% interest when you stash cash in a Savings Vault. (Coming soon in Europe!)'

Something to look forward to from Revolut! [From an email they sent on 16 January]

 

[RedOnion]

'Grow your money with daily interest
Maximise your money with as much as 0.65% interest when you stash cash in a Savings Vault. (Coming soon in Europe!)'

Something to look forward to from Revolut! [From an email they sent on 16 January]

Don't get too excited. That's on USD funds.

 

[Freelance]

State savings rates have been drastically reduced, effective January 24th

10 year bond,now paying 10% (was 16%)

There is now a further disincentive in the case of the 10 year bond. Previously, the return in years 6, 7, 8 and 9 made early redemption in those years somewhat tolerable, always a consideration in longer term products and made this product an attractive option when compared with Savings Certs if there was any possibility of leaving the money for more than 5 years, even if the full 10 years was unlikely. The new interest rate structure backloads to a much greater extent with 50% of the interest payable in the final year. (previously this was 18.75%). The impact on the APR in the later years is significant. Definitely a consideration for anybody who has to factor the possibility of early redemption into their decision.

	Old cumul.	Bonus - Old	Return - Old	APR Old		New cumul.	Bonus - New	Return - New	APR New
End year 1	0.05%	50	100,050	0.05%		0.00%	0	100,000	0.00%
End year 2	0.25%	250	100,250	0.12%		0.00%	0	100,000	0.00%
End year 3	0.50%	500	100,500	0.17%		0.00%	0	100,000	0.00%
End year 4	1.00%	1,000	101,000	0.25%		0.25%	250	100,250	0.06%
End year 5	3.00%	3,000	103,000	0.59%		0.50%	500	100,500	0.10%
End year 6	5.00%	5,000	105,000	0.82%		0.70%	700	100,700	0.12%
End year 7	7.00%	7,000	107,000	0.97%		1.00%	1,000	101,000	0.14%
End year 8	10.00%	10,000	110,000	1.20%		3.00%	3,000	103,000	0.37%
End year 9	13.00%	13,000	113,000	1.37%		5.00%	5,000	105,000	0.54%
End year 10	16.00%	16,000	116,000	1.50%		10.00%	10,000	110,000	0.96%