Banks charging for deposits

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.

Grueller

https://www.boards.ie/discussion/2058218996/banks-charging-for-deposits

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.

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.

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.

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.

kk.man

https://www.boards.ie/discussion/comment/118201697#Comment_118201697

They say stocks and shares are back in vogue too.

amacca

https://www.boards.ie/discussion/comment/118201733#Comment_118201733

They are unnecessarily complicated to invest in yourself in this country (especially in terms of tax treatment) for a small investor especially if you want to go the safer route with an etf or similar....8 year deemed disposal rule, tax free threshold equivalent of 1k punts

the govt doesnt want your avergae joe ever climbing...you are there to earn a wage and then spend it, take on debt and then get onto a pension for as short as possible or go on social welfare.....they dont want you too independant in terms of assets or thinking, its much better if you are living hand to mouth dependant on them for the handouts and then they can buy your vote and control you with a couple of shillings and the money keeps circulating round the economy and people have less time to question where the excess is being diverted.

The single farm payment is something similar imo

.....they are also overvalued and due a haircut now imo anyway....but what would I know

in other times if they left it more like other countries regarding investing in stocks/shares and it wasnt so arcane and punitive.... it might mean investing in property wasnt the only show in town......and that may not be such a bad thing....

but at a time when theres a housing crisis you make it the only option for the small private guy (and not necessarily a great one at that) and attractive for pension funds cooking the books with rental yield calculations (due to a distorted market) they themselves a playing a part in creating......................................... it looks to me as if not just ireland but our global financial system has tied itself up in another knot which will be painful when it unravels.

its because there is nowhere with a return to put money ..the banks have to charge you for it

so money is now a liability to a bank and not an asset, just think about that and let it sink in for a while......................that to me tells you just how fucked things are at the moment.........

https://www.boards.ie/discussion/comment/118201733#Comment_118201733

Great reason not to go near them.

kk.man

https://www.boards.ie/discussion/comment/118202623#Comment_118202623

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.

straight

https://www.boards.ie/discussion/comment/118203171#Comment_118203171

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.

yosemitesam1

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

A little bit away from hitting that here...

Jim2007

https://www.boards.ie/discussion/2058218996/banks-charging-for-deposits

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.

Easten

I think folks are a bit too extreme with their dislike for cash on deposit. Yes it will depreciate over time, but you need to keep a certain amount and it doesn't loose as much value as you think.

For me, I've made huge gains by having cash. I picked up my Tractor for about a third of its true value a couple of years ago. I bought a good stretch of land for 4k/acre. I filled diesel tanks and a few IBCs with diesel when it was 43 cent a liter.

All done by having money ready and not tied up in things like shares or houses both of which is not my field of expertise.

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.

K.G.

https://www.boards.ie/discussion/comment/118204387#Comment_118204387

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

Mooooo

https://www.boards.ie/discussion/comment/118203736#Comment_118203736

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

straight

https://www.boards.ie/discussion/comment/118206092#Comment_118206092

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.

Easten

https://www.boards.ie/discussion/comment/118205907#Comment_118205907

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

Grueller

https://www.boards.ie/discussion/comment/118206533#Comment_118206533

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.

Easten

https://www.boards.ie/discussion/comment/118206961#Comment_118206961

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.

dotsman

https://www.boards.ie/discussion/2058218996/banks-charging-for-deposits

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).

Easten

https://www.boards.ie/discussion/comment/118207152#Comment_118207152

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.

kk.man

https://www.boards.ie/discussion/comment/118207152#Comment_118207152

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

kk.man

https://www.boards.ie/discussion/comment/118206092#Comment_118206092

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.