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Banks charging for deposits

  • 21-11-2021 10:08am
    Moderators, Society & Culture Moderators Posts: 2,392 Mod ✭✭✭✭ K.G.

    Got a letter during the week to say aib are charging us .2 % for our deposit account.what would our parents or maybe grandparents say to the idea that the bank is charging us to keep our money.


  • Registered Users Posts: 4,480 ✭✭✭ Grueller

    Unfortunately it's not a problem I will have to deal with given the likely price of fert next spring and the fact that the new soiled water storage rules mean I have a ball of money to spend in the yard.

  • Registered Users Posts: 3,423 ✭✭✭ herdquitter

    Ran into that buying a few acres this year. Solicitor was adamant to only send on the deposit, leaving the remainder until it was demanded. He'd have had to charge me what his bank charges him if I'd sent on the lot.

  • Registered Users Posts: 1,093 ✭✭✭ Dozer1

    Yes indeed same letter recieved here awhile back. I'd much rather keep money moving be it stock or getting jobs done.

    My wife would be much more conservative than me and would prefer money kept on deposit. She's got shares from her work doing well and would rather keep the cash than reinvest.

    I can't say she's wrong as the rainy day fund is always needed but it must be difficult for the generation who were crippled by high rates in the 80s to see it.

  • Registered Users Posts: 3,180 ✭✭✭ foxy farmer

    Came up in a conversation yesterday with a neighbour. 6k annual charge to mind €1M he was saying. Wealthy withdrawing their deposits and are buying property and immediately putting it back up on the rental market.

  • Registered Users Posts: 2,823 ✭✭✭

    They say stocks and shares are back in vogue too.

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  • Registered Users Posts: 3,423 ✭✭✭ herdquitter

  • Registered Users Posts: 2,823 ✭✭✭

    Very well said.

    I was in the property game but pulled out like many small guys between Tennant rights and terrible taxes it just ant worth the effort.

  • Registered Users Posts: 3,255 ✭✭✭ straight

    Tax bill from buy to lets is crazy. Paying for the privilege of keeping a roof over someone else's head. Best thing you can do with cash at the moment is pay off short/medium term debt. I have cash in a current account at the moment which I was hoping to buy extra land with but I'm getting inpatient and may just clear a 4.5% loan with 5 years left in it.

  • Registered Users Posts: 2,644 ✭✭✭ yosemitesam1

    Is that only an issue if you've 1million+ in cash?

    A little bit away from hitting that here...

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  • Moderators, Business & Finance Moderators Posts: 8,061 Mod ✭✭✭✭ Jim2007

    You can’t live in the past it is as simple as that. Banks can’t pay you interest if they can’t lend the money out securely and are themselves being charged for holding on to the cash that is the reality of the situation. Deal with it.

  • Registered Users Posts: 3,716 ✭✭✭ 3DataModem

    That's a good point by Easten. Much easier to get a deal on property (commercial or residential) if you have cash on hand.

  • Registered Users Posts: 2,168 ✭✭✭ Jjameson

    what year did you buy land for €4000 an acre? Was it cheap for the time?

  • Moderators, Society & Culture Moderators Posts: 2,392 Mod ✭✭✭✭ K.G.

    I was hoping for a little more thought provoking debate than that like is this rooted in money printing that has been going on now over a dozen years

  • Registered Users Posts: 8,117 ✭✭✭ Mooooo

    Self administered pension is the way to use property tax efficiently afaik. Essentially the property is put into the pension an the rent is then built up as part of the pension pot tax free.

    Part of the reason property is so mad is there is no decent way of alternative investments in Ireland.

    Re the negative interest rates, its hard to know. The way the financial crash was dealt with and then covid has pumped so much money in to the system that the way capitalism should have worked with those that should have failed been let to instead of being propped up has pushed everything down the line.

    If you want to borrow then are we gonna be looking at increasing rates or not then. I dunno

  • Registered Users Posts: 3,255 ✭✭✭ straight

    The self administered pension is complicated enough with property. You need to find a property, borrow max of 50% and sell at 15 years I think. There is peer to peer lending apps which give a better return on investment but I wouldn't like to take the risk on them. As far as I can see capitalism is turning into communism and vice versa. See China has no interest in bailing out foreign investors.

  • Registered Users Posts: 849 ✭✭✭ Easten

    2017, and I thought it a great deal. It helps with anything if you get it at a right price. Cheap now with similar places making 10k now

  • Registered Users Posts: 4,480 ✭✭✭ Grueller

    I di similar in 2011. Bought at €7k and it is freely making €15-20k now for similar land. There is a large element of luck in that too though.

  • Registered Users Posts: 849 ✭✭✭ Easten

    I don't put it down to luck, more about patience and not doing anything foolish in the meantime. There will always be opportunity to those who are prepared.

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  • Registered Users Posts: 2,168 ✭✭✭ Jjameson

    It was just meant for ye lads. I’m sure it was nerve wracking at the time. Well done. I let off ground behind me at 8k in 2017 as i could see no see out for what I’d be doing with it.. I have more than a tinge of regret!

  • Registered Users Posts: 3,534 ✭✭✭ dotsman

    What kind of deposit account and how rich are you?

    All AIB have announced is that they are going to start charging accounts with over €1 million balance from Feb onwards. Anyone stupid enough to leave €1 million in a deposit account long term deserves to be charged (nor is this really any news as banks have been charging negative interest rates for large deposits for many years now).

  • Registered Users Posts: 849 ✭✭✭ Easten

    Have no regret, the world is full of farms of land of all sizes and type. If you are interested in increasing your holding then bide your time and something will present itself.

  • Registered Users Posts: 2,823 ✭✭✭

    Join the club..I let off land too which I pass by every day... I'd love to turn back time.. here's hoping for better around the corner

  • Registered Users Posts: 2,823 ✭✭✭

    I disagree with you with regards to property. They are very few one house landlords left in the country. The government taxed these guys put of the market. In fact I consider it's part blame for the housing crisis. If you are into property now you must form a company to avail of a manageable tax.

    I do agree with you on the East v west new style economics. The constant propping up of the western world from the financial crash of 2008 to present has to have a Knock on effect down the line.