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Most competitive Savings Account for 1 Year Deposit

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  • 25-10-2012 7:33am
    #1
    tkelly2012
    Registered Users Posts: 17 ✭


    Hi everyone,

    I am looking to invest about €15k in a fixed term deposit account. Don't need to have access to the funds during this term.

    I did a bit of my own research and the most competitive rate on the market it seems is Ulster Bank with 3.85% AER. Would anyone else have any suggestions or advice on the most competitive long-term deposit savings accounts out there?

    Any help/advice would be greatly appreciated.

    Kind Regards,
    Tom


Comments

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    #2
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    This best buys list on Askaboutmoney.com would seem to agree on Ulster Bank.


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    #3
    tkelly2012
    Registered Users Posts: 17 ✭tkelly2012


    Liam D Ferguson wrote: »
    This best buys list on Askaboutmoney.com would seem to agree on Ulster Bank.

    Thanks, seems so alright! I got in touch with them today and the 3.75% offer is only valid till the end of this month, so get going guys if you have not already!


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    #4
    tkelly2012
    Registered Users Posts: 17 ✭tkelly2012


    All of the rates have dropped significantly, highest is only 3.3%! Madness. Does anyone have any other suggestions where one can earn a good fixed safe return?


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    #5
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    tkelly2012 wrote: »
    All of the rates have dropped significantly, highest is only 3.3%! Madness. Does anyone have any other suggestions where one can earn a good fixed safe return?

    If you want the potential to earn a return higher than what's available on deposit, you must be willing to accept higher risk - the risk that it might not return more than a deposit and/or the risk that it could drop in value.

    Beware of anyone trying to convince you that they have a risk-free investment that will guarantee a greater return than a deposit - it doesn't exist.


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    #6
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    tkelly2012 wrote: »
    All of the rates have dropped significantly, highest is only 3.3%! Madness. Does anyone have any other suggestions where one can earn a good fixed safe return?
    The ECB lending rate is 0.75%
    That makes 3.3% interest on savings a bargain!


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    #7
    tkelly2012
    Registered Users Posts: 17 ✭tkelly2012


    Liam D Ferguson wrote: »
    If you want the potential to earn a return higher than what's available on deposit, you must be willing to accept higher risk - the risk that it might not return more than a deposit and/or the risk that it could drop in value.

    Beware of anyone trying to convince you that they have a risk-free investment that will guarantee a greater return than a deposit - it doesn't exist.

    I thought as much. Thanks, just wanted to see if I was missing a higher rate on a Deposit Account!


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    #8
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    snubbleste wrote: »
    The ECB lending rate is 0.75%
    That makes 3.3% interest on savings a bargain!

    Why do banks offer such high rates?


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    #9
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,215 Mod ✭✭✭✭godtabh


    Henry Ford III wrote: »
    Why do banks offer such high rates?

    To attract customers?


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    #10
    Liam D Ferguson
    Registered Users Posts: 542 ✭✭✭Liam D Ferguson


    Henry Ford III wrote: »
    Why do banks offer such high rates?

    If they can lend the money back out as a personal loan at 6% or on a credit card at 10% I suppose it makes sense.


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    #11
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    Liam D Ferguson wrote: »
    If they can lend the money back out as a personal loan at 6% or on a credit card at 10% I suppose it makes sense.

    Ordinary punters can only dream of those rates.


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    #12
    Walter Knight
    Registered Users Posts: 43 ✭Walter Knight


    tkelly2012 wrote: »
    Thanks, seems so alright! I got in touch with them today and the 3.75% offer is only valid till the end of this month, so get going guys if you have not already!
    Deposit Interest Retention Tax (" DIRT ") will cut it 30%, so it`s getting 2.625%. In accordance with this source the long term average Ireland`s Inflation Rate ( per year?) is 2.73%. As we can see, even at the best rate available on the Irish market we might end up with a loss rather than with an income.
    The only reason I also want to open a saving account is to demonstrate to my bank that I am able to do savings – in order to get a mortgage next year.
    I want to open the Permanent TSB Online Regular Saver account at 3.50% variable rate. ( tsb-online-regular-saver )
    And… Sorry for might be a silly question, but, what amount of money should I apply this percentage to? Let`s say I put 500 euro on that account every month. Hence in a 12 month period I`ll get 6000. But it would be the way too optimistic to suppose that it`s 3.50% off that figure :)
    Thanks for help in advance. :)


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    #13
    Walter Knight
    Registered Users Posts: 43 ✭Walter Knight


    Up :rolleyes:


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    #14
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Walter Knight wrote: »
    And… Sorry for might be a silly question, but, what amount of money should I apply this percentage to? Let`s say I put 500 euro on that account every month. Hence in a 12 month period I`ll get 6000. But it would be the way too optimistic to suppose that it`s 3.50% off that figure :)
    Thanks for help in advance. :)

    500 * 0.035 * (12/12) * 0.7 +
    500 * 0.035 * (11/12) * 0.7 +
    500 * 0.035 * (10/12) * 0.7 +
    500 * 0.035 * (9/12) * 0.7 +
    500 * 0.035 * (8/12) * 0.7 +
    500 * 0.035 * (7/12) * 0.7 +
    500 * 0.035 * (6/12) * 0.7 +
    500 * 0.035 * (5/12) * 0.7 +
    500 * 0.035 * (4/12) * 0.7 +
    500 * 0.035 * (3/12) * 0.7 +
    500 * 0.035 * (2/12) * 0.7 +
    500 * 0.035 * (1/12) * 0.7

    = 79.63 EUR


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    #15
    Walter Knight
    Registered Users Posts: 43 ✭Walter Knight


    I suspected it`s gonna be this sort of calculation. Just wasn`t sure.

    Thanks a million, Fungus. :)


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    #16
    Temp Barry
    Registered Users Posts: 92 ✭✭Temp Barry


    Fungus wrote: »
    500 * 0.035 * (12/12) * 0.7 +
    500 * 0.035 * (11/12) * 0.7 +
    500 * 0.035 * (10/12) * 0.7 +
    500 * 0.035 * (9/12) * 0.7 +
    500 * 0.035 * (8/12) * 0.7 +
    500 * 0.035 * (7/12) * 0.7 +
    500 * 0.035 * (6/12) * 0.7 +
    500 * 0.035 * (5/12) * 0.7 +
    500 * 0.035 * (4/12) * 0.7 +
    500 * 0.035 * (3/12) * 0.7 +
    500 * 0.035 * (2/12) * 0.7 +
    500 * 0.035 * (1/12) * 0.7

    = 79.63 EUR

    Another way to estimate interest is:
    Opening Balance (500) + Closing Balance (6000) = 6500
    Divide by 2 to get average balance = 3,250
    3,250 x 3.5% x 70% = 79.63


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