Best Pace for Savings?

gandalfio

Hi,

Saving for a house deposit. Where is the best place to deposit the savings (circa €2000 per month)? Where will it accrue the most interest? Or are the gainings to be made on such a small amount only marginal between banks, credit unions etc?

VonZan

gandalfio wrote: »

Hi,

Saving for a house deposit. Where is the best place to deposit the savings (circa €2000 per month)? Where will it accrue the most interest? Or are the gainings to be made on such a small amount only marginal between banks, credit unions etc?

The max you will get is 1.5%. It's pointless trying to save and earn interest in this country.

JTMan

gandalfio wrote: »

Hi,

Saving for a house deposit. Where is the best place to deposit the savings (circa €2000 per month)? Where will it accrue the most interest? Or are the gainings to be made on such a small amount only marginal between banks, credit unions etc?

The KBC Extra Regular Saver account pays 2.50% AER Variable (soon reducing to 2.25% AER Variable). You can deposit up to 1,000 EUR per month and also a once-off lump sum of 10,000 EUR. You have to also open a KBC Extra Current Account but there are no fees if you do not use the debit card and you deposit at least 2,500 EUR per month into the KBC Extra Current Account.

If you are buying the house with 2 people, then you could open 2 accounts whereby you both save 1,000 EUR each.

The cap on this great rate is 40,000 EUR so do not exceed this amount.

Jim2007

VonZan wrote: »

The max you will get is 1.5%. It's pointless trying to save and earn interest in this country.

So what is so special about this country???? The rates are no different from most EU counties and with inflation running at about 0.7% it is not pointless.

Klonker

Bank of Ireland give you a €2,000 top up on your mortgage saver if you meet certain criteria (pay in at least 6 months, etc.) Not sure when it ends but worth checking out.

brendan86

Klonker wrote: »

Bank of Ireland give you a €2,000 top up on your mortgage saver if you meet certain criteria (pay in at least 6 months, etc.) Not sure when it ends but worth checking out.

No offence but Bank of Ireland give you 2000euro topup?

They give you nothing. There is a lot your forgot to mention. You have to be a first time buyer for starters and have to draw down your mortgage with Bank of Ireland.

2000euro is nothing to be deciding on one of the biggest debts you will incur in your life. The main decision should be the history of the way the bank treats existing customers and interest rate. Not all these cons of so much % cashback and a (free 2,000euro). Banks arent fools, they know what there at, and theres gullible people out there that just look at the cashback as free money and this mortgage saver. Look at the bigger picture before deciding.

_____________

This is only the difference of 0.25% interest between one bank from another.

If one was to borrow 300,000 at a rate of 4% the total interest over 30years would be 215,608

If he got the same amount over same term but at 3.75% with a different lender the total interest is 200,164

Thats the difference of 15k interest paid with only a 0.25% interest rate difference.

______________

Personally i would steer clear of Bank of Ireland!

Just look at there variable rate 4.5% while AIB is 3.2%. They will well claw there 2000 back by the time there done with you and plenty more.

Klonker

brendan86 wrote: »

Klonker wrote: »

Bank of Ireland give you a €2,000 top up on your mortgage saver if you meet certain criteria (pay in at least 6 months, etc.) Not sure when it ends but worth checking out.

No offence but Bank of Ireland give you 2000euro topup?

They give you nothing. There is a lot your forgot to mention. You have to be a first time buyer for starters and have to draw down your mortgage with Bank of Ireland.

2000euro is nothing to be deciding on one of the biggest debts you will incur in your life. The main decision should be the history of the way the bank treats existing customers and interest rate. Not all these cons of so much % cashback and a (free 2,000euro). Banks arent fools, they know what there at, and theres gullible people out there that just look at the cashback as free money and this mortgage saver. Look at the bigger picture before deciding.

_____________

This is only the difference of 0.25% interest between one bank from another.

If one was to borrow 300,000 at a rate of 4% the total interest over 30years would be 215,608

If he got the same amount over same term but at 3.75% with a different lender the total interest is 200,164

Thats the difference of 15k interest paid with only a 0.25% interest rate difference.

______________

Personally i would steer clear of Bank of Ireland!

Just look at there variable rate 4.5% while AIB is 3.2%. They will well claw there 2000 back by the time there done with you and plenty more.

They do give you a €2,000 so your first point wrong. If you meet certain criteria including drawing down the mortgage with BOI. I mentioned to the OP that there was criteria to meet that he should check out.

As for the rest of your rant..... Yes their variable rates are extremely high but the majority of people are going for fixed rates across all banks (being nudged that way by the banks by their rates). BOI's fixed rates from 3% are competitive, especially with their 2% Cash Back up front which on a €250k mortgage, along with the MortgageSaver top up would net you €7k, not bad I don't think. Stay 5 years and you may get another 1% if you have a BOI current account, netting you another €2.5k.

You are talking about interest over 30 years but there is nothing stopping the OP switching at anytime during his mortgage (lots of banks are paying for the switching costs at the moment).

You obviously have an agenda. You seem to like calculating interest, tell me a better deal than the one I outlined above over 5 years on a >80% mortgage. I suspect you won't.

I've gave the OP an option to look into, you have gave him nothing useful, only your own twisted drivel.

Henry Ford III

Jim2007 wrote: »

So what is so special about this country???? The rates are no different from most EU counties and with inflation running at about 0.7% it is not pointless.

Deduct D.I.R.T. and the net return is pretty marginal.