SSIA -> Northern Rock: Demand Online account

T

TheTick

Guest
Hi,

Was looking to put about 10k from an SSIA into Northern Rock: Demand Online account.

Getting a bit confused about the best rate to go for, Annual versus Monthly. The monthly rate is .25% lower then the 4.15% annual rate.
When I talked to them they were dismissive as if there is no difference.

Since I'll most likely be leaving the money there for 18 months, does it matter which rate I go for? Arithmetic isn't my strong point...

Help!
Cheers.
 
Re: SSAI -> Northern Rock: Demand Online account

Hi
Not sure whats the best i see in the paper today AIB are giving 6.5% ,You can withdraw money at any stage .
Good Luck
!Ray
 
If you do a search, you will see that the 'annual v. monthly' question has been asked before.

The AIB 6.5% offer is a regular saver deal and so isn't really comparable to what Northern Rock (or indeed Rabo) offer for lump sums.
 
Hi
Can't you put your SSIA sum into the Aib A/c and then save the min which i think is 10 euro a month.So you will earn 6.5% on your money.
Cheers
!Ray
 
you can't put a lump sum into the AIB reg saver account. The balance starts at 0 and then you can add up to 300 a month and get 6.5 at that. You could lodge up to 10,000 in a RABo deposit account and then drip feed it into a regular saver account.
 
Unless you need a monthly income opt for NR's annual rate and get a better return and no penalty if you happen to close the a/c mid year.
 
Rabo's is better at the min for €10000 - 4.75%, NR is 4.15% (yes go for annual).

You could consider lodge your monthly contributions to the likes of the AIB reg saver or the likes, €250 to yours and €250 to your other half's as with the ssia.
 
What is the story with DIRT tax what is the rate at which it is deducted?
 
DIRT is 20% and is deducted at source on any interest earned unless you are [broken link removed] (exemption will soon be granted at source according to [broken link removed]).
 
Can you withdraw from Northerem rock,rabo at any time or are you fixed into a fixed term, my dad has sis coming and want to put away about 15 k for a few years but if needed want to just take it out, thanks
 
NR Demand Online and Rabo accounts are demand accounts so you can withdraw any time. Somebody with €15K to put away for a few years probably shouldn't be sticking (all of) it on deposit for that term since after DIRT and inflation they are more likely to make a real loss.
 
CM what would you suggest instead to do with 15k, he gets it in April cheers
 
It's impossible to make meaningful suggestions without much more detailed info about his overall situation. One rule of thumb - if he has any debts then he should consider clearing/reducing them for a start. If not then what he should do depends on stuff like his existing financial situation (incomings/outgoings, existing savings/investments), attitude to risk/volatility, short/medium/long term goals and what finances might be needed for these etc. etc. The key posts in this forum and in particular the AAM and IFSRA guides to savings & investments would be a good place to start getting ideas on what to consider. If in doubt get independent, professional financial and tax advice.
 
I stick to the NR monthly interest as I may need to spend the savings before the year is up so i'd rather see the monthly interest as i may never get any interest if on annual interest
 
You should still opt for annual interest and just make withdrawals of your original capital as you go if you need them in my opinion. Better to opt for the higher rate if at all possible.
 
Bobo, even with a zero balance at the 31/12 you still get paid the interest that your a/c earned during the year.
 
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