Regular Saver v Deposit Account

Ginger83

Hi, I have a EBS regular savers account which I save €1000 per month. The rate is 7.5% (ECB + 3.25% and guaranteed until june 2009)
I also have a small lump sum approx €5k in a current bank account.
Would anyone have any advice on whether it would be a good idea to put this cash in a deposit account or maybe open another regular savers account somewhere else?
Its not doing much for me where it is at the moment.

Jet Black

For 7.5 at 1k per month you should be coming out with about €481 before and €385 after DIRT. This calucation is based 12 payments on a monthly basis to the account. The interest is .625 per month.
So if my figures are wrong thats how I calucated.

Lets say for example you had a lump sum 12k.. Put that in a deposit for a year and you get 5.5% just an average rate for the year. You would get €660 before and €528 after DIRT.

I used 12k because 12 monthly deposits of 1k is 12k.

These Regular savers have a high rate of interest but when you break it down and show it as an APR it a lot smaller. The 7.5 is less than 4% as an APR. BUT thats only my opinion.

Check out itsyoumoney for info.

Colonel Sanders

heymcflyx wrote: »

For 7.5 at 1k per month you should be coming out with about €481 before and €385 after DIRT. This calucation is based 12 payments on a monthly basis to the account. The interest is .625 per month.
So if my figures are wrong thats how I calucated.

Lets say for example you had a lump sum 12k.. Put that in a deposit for a year and you get 5.5% just an average rate for the year. You would get €660 before and €528 after DIRT.

I used 12k because 12 monthly deposits of 1k is 12k.

These Regular savers have a high rate of interest but when you break it down and show it as an APR it a lot smaller. The 7.5 is less than 4% as an APR. BUT thats only my opinion.

Check out itsyoumoney for info.

If the AER is advertised as 7.5% then the AER is 7.5%.

This AER will apply to the balance at all times (as long as the rate doesn't change). However if i put 1k a month in at the end I will not have 12k *.075 interest as the whole 12k has not been on deposit for the full 12 months. This does not say that the AER isn't 7.5%,

Colonel Sanders

1,000 6.37
2,000 11.51
3,000 19.11
4,000 24.66
5,000 31.85
6,000 36.99
7,000 44.59
8,000 50.96
9,000 55.48
10,000 63.70
11,000 67.81
12,000 76.44

4.1% 489.45



This is how your balance will accumulate interest (gross) if you add 1000 on the 1st of each month to a regular saver paying 7.5% AER. The total interest divided by 12k is 4.1% )as I said the full 12k isn't on deposit for the full 12 months) but the AER is 7.5%

EDIT: first column is the account balance and the 2nd is how much interest you get in each month

Colonel Sanders

FWIW I had a 2 year anglo regular saver paying 7% that matured in August. This is now on deposit earning 5.3% as you cannot deposit lump sums to regular savers.

However had i opened a First Active regular saver and deposited 1k a month for 2 years this 24k would still be on deposit at 7.15% AER (and I would be adding to it each month) as there is no term to the FA account and the maximum balance is 100k. You also have instant access. For this reason I open a first active regular this time rather than another anglo account even tho the AER on the anglo account is higher