Term Deposit rate interest predictions for 2011 2012

[mcriot29]

now with the ecb raising interest rates what could they rise to for deposit accounts by end of 2011 and 2012 say for a 1 year fixed myself i can see maybe 5 % or more by end of 2012

 

[marksa]

1 year fixed myself i can see maybe 5 % or more by end of 2012

only if the banks continue to pay 2% + over the 1 year Euribor. more likely they will by end of 2012 either

A) have defaulted/gone bust
B) have a more stable funding base and not need to pay up as much for deposits.

Take your pick!

 

[Lightning]

now with the ecb raising interest rates what could they rise to for deposit accounts by end of 2011 and 2012 say for a 1 year fixed myself i can see maybe 5 % or more by end of 2012

Possibly. There is an expectation that there will be several ECB rate increases.

 

[Lightning]

only if the banks continue to pay 2% + over the 1 year Euribor. more likely they will by end of 2012 either

A) have defaulted/gone bust
B) have a more stable funding base and not need to pay up as much for deposits.

Take your pick!

Hi Mark,

Is Euribor relevant to current day Irish bank funding.

Can you name any Irish Bank that still borrows at Euribor? They all get there 1% liquidity fix from the ECB/CBI.