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Advice

  • 28-05-2012 1:51pm
    #1
    Clauric
    Registered Users, Registered Users 2 Posts: 610 ✭✭✭


    I'm looking for some advice on investments. I have 2 sums of money available to invest. I have gone to the various retail banks (BoI, AIB, ILP, Ulster, NIB), as well as Rabo, Investec, KBC, and EBS, who all have suggested different products and terms of deposit.

    What I am wondering is how to guage and measure the returns on each product, so I can compare like with like.

    Is it better to calculate all products using a:
    • 1 month calculation (e.g. AER/12)?
    • using an annual calculation (e.g. AER)?
    I know I will have to deduct DIRT (30%), and if I go for a product of less than 1 year, I will probably have interest to add in for an annual calculation.

    Also, if I have missed any FIs that have good products, please feel free to list them.

    Many thanks


Comments

  • #2
    roro2
    Registered Users, Registered Users 2 Posts: 412 ✭✭roro2


    AER allows you to compare the interest rate on products with different terms - so it is easiest just to use this measure to compare/rank. Dividing the AER by 12 will still provide the same ranking. One thing to be careful with is accounts that pay interest upfront at the start of the term - the AER will be a little higher as it assumes that the interest will be reinvested at the nominal interest rate on the deposit account, even when it is paid into a zero-interest current account.


  • #3
    HowFinancial
    Registered Users, Registered Users 2 Posts: 71 ✭✭HowFinancial


    AER is the gauge to use.
    KBC offering good interest rates.
    An Post also have good offerings (savings bonds/solidarity bonds), no DIRT payable on some of these so it's worth asking there.


  • #4
    bull_ring
    Banned (with Prison Access) Posts: 96 ✭✭bull_ring


    Clauric wrote: »
    I'm looking for some advice on investments. I have 2 sums of money available to invest. I have gone to the various retail banks (BoI, AIB, ILP, Ulster, NIB), as well as Rabo, Investec, KBC, and EBS, who all have suggested different products and terms of deposit.

    What I am wondering is how to guage and measure the returns on each product, so I can compare like with like.

    Is it better to calculate all products using a:
    • 1 month calculation (e.g. AER/12)?
    • using an annual calculation (e.g. AER)?
    I know I will have to deduct DIRT (30%), and if I go for a product of less than 1 year, I will probably have interest to add in for an annual calculation.

    Also, if I have missed any FIs that have good products, please feel free to list them.

    Many thanks


    if a bank is offering 3% on an 18 mth deposit thats an AER of 2%

    dirt is the same regardless of which bank you go with


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