Term Deposit Rates questions

my dad needs advise investing around 95K, i have a few newbie questions.

what happens after 3 months with a 3 month Term Deposit ?
do you continue to earn interest at the terms rate, a new rate, or is there no more interest earned ?

Depends on the terms and conditions of the account. Often the interest rate will revert to something very, very low, e.g. 0.01%. Your dad should approach the bank before the end of the term and decide on another term account or ask for it to be automatically transferred to a demand account.

Yeah, at the end of the 3 months you need to give a new instruction to the bank.

thanks guys,
yeah, he'll probably put a good chunk in a fixed term, maybe a different bank, he uses BOI now for day to day banking, they aren't great for fixed term at the moment, ...2.5%ear for 18 months, heavy penalties for withdrawals.

i was reading this recent thread -> Irish Deposits Guarantee after September 2010

and it says the the elg covers 'some Fixed-Term Deposit Accounts for up to 5 years'.

does that mean if he got a 5 year one its covered, ...but if he went for 5 concurring 1 year ones, that the elg might not apply to one of the later ones down the line ?


i know most of the stuff in the media is alarmist, but which of the best buy term deposits are the safest most solvent, and have a bricks and mortor store in dublin you can drop in to ? it doesnt have to be 3.5%ear, just better then BOIs present 2.5% offer.

and how long maximum would you put something on fixed term in the present climate, rates gotta go up sometime right ?

thanks again.

askam said:

but if he went for 5 concurring 1 year ones, that the elg might not apply to one of the later ones down the line ?

Click to expand...

Yes, as things currently stand the ELG expires on September 28th 2010 for newly opened term deposits.

thanks Ciaran,

whats the best method of finding out which institutions meet his other criteria,

drop in office in dublin
security/solvency generally assumed to be good at the moment

if a public answer is against site rules, can one of the mods or big posters send me a pm of a few institutions names where i might begin searching/comparing options.

thanks.