Savings account advice.

Tony Broke

I have just over 20k in the bank at the moment, I was going to call into the bank on monday lunch time and talk about setting up a savings one.At the moment I have a regular reserve deposit account with Bank Of Ireland which isnt making me anything.I have been a regular saver with them since I was 16 ( now 24 ) and dont really feel like taking my savings record to another bank incase I decide to get a mortgage or something in the next few years.

I have looked through the site and dont really see anything that appealing, easysaver looks good but 3% and 4 withdrawls a year doesnt seem like much.

I plan to put 15k into a savings account and would like to earn 1k a year off it?

Is that possibile from BOI or others?

Show_me_Safety

you should try the different bank websites, alot of them have calculators.
anglo offer 8% regular savers account, First Active is 6.4%, BOI easy saver is 7%.

for your lump sum of 15k, you want 1k per year. for 15k to earn 1k per year you'd need to find a term deposit account that offer 7-8% ish.
most are around 5% at the moment.

Sarn

These links should have some useful info for you. I don't see the need to keep all of your cash with the one institution. You will always have statements from whatever institution you switch to to demonstrate your savings ability. I've been with BOI for 14 years and use them for my current account but keep my savings elsewhere.

Another thing to consider is whether or not you need access to the cash. At the moment fixed term accounts seem to be offering the best rates and with the ECB cutting rates at the moment they will likely provide a better return in the short term (in a non-investment setting).

Lump sum best buys

Regular savings best buys

Remember you also have to pay 24% to the government on whatever interest you earn.

JTMan

Tony Broke wrote: »

I plan to put 15k into a savings account and would like to earn 1k a year off it?

It seems you are looking for a year term deposit?

Your options ...
1) 6.00% with Anglo Irish but the offer finishes tomorrow.
2) 5.60% with Halifax (again new rate tomorrow)
3) 5.00% with Northern Rock.

Check out askaboutmoney.com or itsyourmoney.ie

RedPlanet

I've seen this question come up a few times now.
I'm looking for an answer myself.
All 3 of those banks Fungus mentions are all in trouble.
Personally, i don't want to put my savings into a bank that's on the ropes.
One could argue about the government guaranty; but, how much confidence can one have that the government can pay out?
And what sort of bureaucracy do you think they'll put between you and your deposit?

Ogham

They are probably all in a bit of trouble. RBS - which owns Ulster - has announced massive losses today.
Even with guarantees - I would spread it a bit so that if there are delays getting at your money you won't hav it all in the one place.
Those 12 month rates rates are now Anglo Irish 5.25, Halifax 4.5
see www.moneyguideireland.com

SmandyMaguire

Just where is the safest place to put savings do ye reckon?
is postbank a better option or maybe the credit union - i'm not that bothered about interest rates...I would rather me dosh was safe :P

RedPlanet

From what I gather there seems to be consensus to spread it around a few different institutions, including a foreign bank if possible.

Sarn

RedPlanet wrote: »

All 3 of those banks Fungus mentions are all in trouble.

Northern Rock is absolutely solid. It was the safest place to put your cash until our government backed our deposits. It was nationalised by the British goevernment so unless the UK collapses you'll be fine.

I'd go with spreading it around, just in case one does go under and there's a delay in getting your cash back. Personally I'd avoid the credit unions, mainly due to the poor return but think how many people got CU loans to cover deposits on their stretched motgages.

SmandyMaguire

any thoughts on postbank?