High interest saving account?

Wafaa79

Hello,

could anyone advise me on which bank would be best for a high interest saving accounts?
I don't mind if they provide online services only, as long as they are reliable and safe.

Thanks in advance

JTMan

Do you want:
- An instant access account for a lump sum?
- A notice account for a lump sum?
- A regular saver account where you can save monthly?
- A locked term deposit with a fixed rate for a lump sum?

Have a read of several comparison guides:
- AskAboutMoney: http://www.askaboutmoney.com/threads/savings-best-buys.90481/
- ConsumerHelp: http://www.consumerhelp.ie/compare
- Bonkers: http://www.bonkers.ie/compare-savings-accounts/

Wafaa79

Hi,

thanks for your answer.

My husband and I have a lump sum and are not planning to apply for a mortgage for some times so I think that "a regular saver account where you can save monthly" would be ideal at this stage to continue growing our savings.

I will check out your links.

Thanks

JTMan

Where is the lump sum that you currently have held? Do you perhaps need both a lump sum product and also a regular saver product?

Wafaa79

It's on a saving account in France but I will be transferring it to Ireland as I have reached the maximum balance. We have about 60K eur.
If my understanding of the terms lump sum product and a regular saver product is correct, I suppose that the regular saver product would be the way to go?
Thanks again for your help

DMcL1971

A regular saver account provides the highest interest rate, however you cannot make an initial deposit to that account type. That means you have to start at zero and add 1000 per month. This would be fine if you were a new saver but you cannot deposit the initial 60K into that type of account.

The 60K would have to be lodged either to a fixed term account or an instant access account. With a fixed term account you cannot remove any of the money until the end of the term. Currently the highest interest rate for this would be from PTSB with an interest rate of 1.1%.

For an instant acces account you can withdraw the money at any time but the best rate would be 0.65% from Leeds Building Society.

You might be better off leaving the 60K where it is and perhaps adding any new savings to a regular saver account. EBS offer 3% and KBC offer 3%. However with KBC you have to also have a current account and lodge 2.5K to it each month.

JTMan

What rate are you getting on the 60k in France?

Currently the highest interest rate for this would be from PTSB with an interest rate of 1.1%

KBC pay 1.10% Fixed on a 1 year term deposit but only if you have a KBC Extra Current account which requires a deposit of at least 2,500 EUR per month to avoid fees.

For an instant acces account you can withdraw the money at any time but the best rate would be 0.65% from Leeds Building Society.

Leeds Building Society (Ireland) have the best variable rate but it is an notice account that requires 30 days notice, there is no online access and the account operates by cheque. KBC will pay you 0.60% AER variable on an instant access account called Smart Access with online access.

A regular saver account provides the highest interest rate, however you cannot make an initial deposit to that account type.

Normally, yes but sometimes you can.

KBC Extra Regular Saver allows a lump sum deposit up to 10,000 EUR at the start and then deposits of up to 1,000 EUR per month. The rate is 3.00% AER variable. You are required to open a KBC Extra Current Account and deposit at least 2,500 EUR per month to avoid fees.

Wafaa79

Thank you all.
Rate in France is 1% yearly but the thing is that we've reached the threshold now and won't be able to add anything.
I suppose that the best as you suggested is to start a new saving regular account and leave our current lump sum alone.

JTMan

Wafaa79 wrote: »

Thank you all.
Rate in France is 1% yearly but the thing is that we've reached the threshold now and won't be able to add anything.
I suppose that the best as you suggested is to start a new saving regular account and leave our current lump sum alone.

1.00% is good rate these days for lump sums. Yeah, best leaving the money there.

Wafaa79

Thanks.
Actually, it won't change anything leaving it there because once the threshold is reached, no money can be added and it won't generate further interests.

AlmightyCushion

KBC extra regular saver gives a rate of 3% if you have an extra current account with them as well. You can deposit a max of €1,000 a month into this account but you can deposit a lump sum of up to €10,000 on opening the account.

You and your husband could open an account each (maybe even a third as a joint account, if they allow that) and transfer a total of €20,000 (possibly €30,000 if they allow the joint account) from your lump sum. Then deposit your savings every month into these accounts and use what's left of your lump sum to bring you up to the maximum of €2,000/3,000 a month.

Edit: Just checked and they do allow joint accounts so between you and your husband you could have 3 accounts.

ratracer

Have a look at statesavings.ie, by an post. Similar to yourself, I have a recently matured bond, which I want to re-invest with a guaranteed return. Split your investment into two 10 year bonds, guaranteed return of 16% (1.5% AER) and access to your funds if needed before the end of term.

alfaromeo84

Ratracer, that 16% state saving thing, is that subject to D.I.R.T.

ratracer

alfaromeo84 wrote: »

Ratracer, that 16% state saving thing, is that subject to D.I.R.T.

I was advised to go this route by a QFA, she said it is dirt exempt.

okiss

In regards to state savings they also have a 3, 4 and 5 year product all of which have different interest rates and you do not pay dirt tax on these products. I know you may not want to tie up your money for a 10 period.
You may want to spilt the €60,000 between these accounts.

I would also advise you to look at http://www.consumerhelp.ie and click on financial product comparisons. You can find out information on fixed term savings, regular savings ect here.

In regards to regualar savings accounts you can put in ie an amount each month and after 12 months it tell you want interset is due on that amount so you can see where give you better return.

JTMan

The 3, 4, 5 and 10 year State Savings products are DIRT and PRSI exempt. The downside is the return is low and it is a very long period of time. Nobody can say for certain what their needs will be with money over the next 3-10 years.

Wafaa79

Thank you all for your kind replies. This is very helpful.