EBS Long term savings account and Irish Life

billyhead

So I opened an EBS account 2 weeks ago (day to day money) and would like to earn a return on my savings so I inquired about products available. I am willing to lock money away for say 5 years to achieve the maximum interest return and when I inquired about accounts at the desk today i was called into a room with an investment advisor. The account I opened today was a 5 year account managed by Irish Life and I was told it was a mid risk return account. Now I am not sure I did the right thing as a I am afraid I might lose money then gain. I consented i the consultation to put by SO €750 a month away.
I signed up on a whim and would be afraid of losing money. I can live quite easily with deflation or no inflation and forego the carrot offered by EBS/Irish life as a greater return than deposits. All I really want right now is for my life savings to be safe. It seemed like a no brainer in the meeting. They havent taken any money yet by SO from my day to day account as it is not due to start until March 7th so i am not sure if I will penalized if I decide to close it on Monday. I had thought that EBS would be getting a cut, how could anyone think they would not. It was a bit silly of me to jump the gun. Low inflation at the moment would help ease my mind if I just left the money in the daily banking account. Any feedback or suggestions as to what to do would be greatly appreciated.

gordongekko

What are the charges?

danjo-xx

I think there is a 7 day cooling off period in which to change ur mind.

billyhead

Its an EBS Choice saver account. I was just told that there are early penalties for withdrawal even though I havent made a SO payment yet to the account.

gordongekko

billyhead wrote: »

Its an EBS Choice saver account. I was just told that there are early penalties for withdrawal even though I havent made a SO payment yet to the account.

Charges?

bridster007

Just so you know, you have invested in stocks and shares through an investment fund, most likely one of the Maps funds by Irish Life, not a savings account to earn interest. If you are not comfortable with that then cancel it.
They likely have an inherent annual charge of around 2.0% considering the way they are constructed. And there may be other charges on your monthly contribution.

Stock markets are at an all time high so you are buying at high prices.
Not saying they can't go higher but you take the risk.
5 Years is not a long enough timeframe to balance out the ups and downs.

billyhead

bridster007 wrote: »

Just so you know, you have invested in stocks and shares through an investment fund, most likely one of the Maps funds by Irish Life, not a savings account to earn interest. If you are not comfortable with that then cancel it.
They likely have an inherent annual charge of around 2.0% considering the way they are constructed. And there may be other charges on your monthly contribution.

Stock markets are at an all time high so you are buying at high prices.
Not saying they can't go higher but you take the risk.
5 Years is not a long enough timeframe to balance out the ups and downs.

Thanks Bridster. I thought it was a savings account. I am not a risk taker so I am going to cancel it on Monday. Would you know if there would be a fee to cancel it? Irish Life have been send me e-mails about account ids and passwords for their online website.

bmwguy

100% sure you have a cooling off period, cancel it if you want

Browney7

If no money taken yet you'll be grand to cancel - 750 a month with five year exits. Ebs probably got over a grand in commission

billyhead

Browney7 wrote: »

If no money taken yet you'll be grand to cancel - 750 a month with five year exits. Ebs probably got over a grand in commission

Thanks Browney. Surely they dont get €1000 if I close the account?:eek:

skipper57

I Would agree with Bridster in that this is an investment product which has annual charges and stock markets are at all time highs, there is a possibility of a market correction in the not too distant future.

My experience of this type of product is:
Invested 5,000 in a mix of property & stocks in November 2006.
In September 2009 had fallen to 2,642 as markets crashed.
In September 2014 was 4,458.
April 2015 5,160.
January 2016 4,915. Sick of rollercoaster so is now currently invested in just Irish & UK commercial property for slow and steady rental returns with a 2.4% annual charge. Current value is about 5,300 after 10 years and a market crash.

So, we also have regular saver accounts giving a 3% gross yield on maximum savings of 1,000 per month for a year. In year 2 we open regular savers in other institutions and drip feed the 1,00 per month into new accounts. NO RISK and a little return.
It's whatever is the right choice for you.

The J Stands for Jay

skipper57 wrote: »

Sick of rollercoaster so is now currently invested in just Irish & UK commercial property for slow and steady rental returns with a 2.4% annual charge.

Wow, that's expensive.