Savings question

I have €20K in a credit union account which nets me 1.5% interest per annum. However I was watching a movie last night and saw an ad for EBS offering 5.1% per annum.

That set me thinking. I don't touch the money ever or use any of the other credit union services so would I be better off somewhere else?

Can anyone give me some advice on this? For example my brother says that with the EBS 5.1% there's probably a hidden catch that you have to leave the money with them a number of years. Would this be true?

Really, any and all advice welcomed. Many thanks in advance.

gurramok

Off the top of my head, the minimum EBS limit is 25k or over so that rules that out for you.

Others like INBS have 5.1%, Anglo Irish is 5%...these accounts are all 1 yr fixed rate for fixed terms.
The catch is that they are 1yr fixed accounts where you cannot touch the money for 1 year, great to stop one spending it

Variable terms(instant access type) usually have slightly lower interest rates(4%+)

Earning 1.5% at present is woeful, move it now to get better interest, shop around as there are a host of accounts that pay more that that.

thanks for the reply. I checked around the askaboutmoney forums and First Active have an eSavings a/c which pays 5.22% on anything below €15k.

edit: Thanks for that INBS rate. Think I'll put the whole lot in with them for a year at 5.1%.

juuge

Just be careful, if it exceeds 20k the revenue will be asking where you got the money from.

juuge

juuge wrote: »

Just be careful, if it exceeds 20k the revenue will be asking where you got the money from.

huh?

The Rooster

juuge wrote: »

Just be careful, if it exceeds 20k the revenue will be asking where you got the money from.

That's interesting. I've often wondered how much you have to lodge into a bank before they are obliged to give the information to Revenue?

thanks for the reply. I checked around the askaboutmoney forums and First Active have an eSavings a/c which pays 5.22% on anything below €15k.

edit: Thanks for that INBS rate. Think I'll put the whole lot in with them for a year at 5.1%

Personally I'd put €14,000 into First Active at 5.22% and €6,000 into Northern Rock at 5%. Both have instant access in case you unexpectedly need the money or another investment opportunity arises.

The Rooster

The Rooster wrote: »

Personally I'd put €14,000 into First Active at 5.22% and €6,000 into Northern Rock at 5%. Both have instant access in case you unexpectedly need the money or another investment opportunity arises.

Yes that's what has me torn at the moment. They have instant access but their rates might fall the minute I put it in? I don't know what to do.....INBS or FA....INBS or FA....

Ogham

If the rate drops just move the money. Better than tying it up for a year with a slightly lower rate.

LouOB

Im getting 5.25 of ptsb