We were asked to take part in a studio debate (at the end of the clip) on Standard Variable Rates, why they are so high and what we should do to bring them down. We believe they are already headed down and that this is mainly a straw-man issue, rates are going to come down in spite of anything anybody does.
This story appeared in the print and online edition of the Sunday Business Post on the 9th of June 2013.
Another banking win is how some heralded the move by the NTMA to drop their savings rates, in some instances these rates reducing by over 40%. The savings products are distributed on an agency basis by An Post, but was it a decision made due to bank pressure and is there anything a saver can do about it?
To start we need to remember that typical deposit rates in normal nations with healthy banks are generally about one percent or less. Our nation is not typical, our banks are still far from healthy, so we have seen elevated rates for the last five years.
At one point in late 2008 early 2009 you could get over 5% on a one year deposit. And although the banks whine about An Post having state backing and great rates they didn’t do this when their members had the best rates during the financial crisis and only existed due to state support, sauce for …
This is the full clip which incorporates ‘The Insider’ and the follow up piece in studio about how banks can use your information to sell you things. The majority of people open accounts to keep money safe and to make payments, not to be sold products or have their data used to target them for a sales pitch, we talk about the best way to defend yourself from this.
The normal DIRT rate will increase from 30% to 33% with effect from 1st January 2013 onwards. The DIRT rate applying to deposit tracker bond increases form the same date to 36%.
As indicated already, deposit interest will also become subject to normal PRSI @ 4% with effect from 2014 for employees; PRSI has always applied to self employed Class S PRSI.
The increased DIRT rate in 2013 and the imposition of PRSI on deposit interest from 2014 will mean depositors will be getting a lower net return in 2013 and again in 2014, this is coupled with a long term trend towards lower deposit rates meaning the argument for keeping money on deposit is becoming weaker and weaker.
The leading deposit rates available at present are as follows:
1yr fixed: 3.7% with KBC (min €3,000) 1yr fixed: 3.5% with EBS (min €10,000) 2yr fixed: 3.25% with NationwideUK Ireland (min €3,000)
There are a host of rates with different maturities, from demand accounts to various monthly durations. These are just the some of rates available on an annual basis.
The lenders offering the best deposit rates are listed below with the highest in each category being the one we have shown.
Best demand account: INBS 3.75% (up to €20,000), Halifax 3.75% (up to €10,000), Anglo Premium Demand 3.1% – no restrictions
Best 7 day notice: Anglo 7 Day Notice 1.6%
Best 1 Month/30 Day: PTsb 30 Day Notice 3.25% (min. €10,000)
Best 3 Month: Ptsb 90 Day Fixed 3.25% & Investec 3 Month Fixed 3.25% (min. €20,000)
Best 6 Month: Investec 3.25%
Best 9 Month: Investec 3.5%
Best 1 Year Fixed : Anglo 3.6%
If you want to consider your deposit options you can contact us on 01 679 0990, we don’t have deposit agencies with every lender listed in the top position, so in some cases we’ll have to send you direct but in any case we can still help you choose the best deal on the market. All rates are up to date as 9th November 09′ and are subject to change.
In browsing the site itsyourmoney.ie today I noticed something interesting. First of all there is a section for ‘savings & deposit accounts’ then a separate one for ‘state savings schemes’ (note SSIA’s are long gone), but the ‘savings schemes‘ are all really just deposits! Check out their rates too! lol.
If you go to ‘compare costs and benefits’ on deposit accounts you get a list, but in with the banks who shows up? An Post, so they are either a ‘state plan’ or they are not? Indeed it seems both apply, they have their own section, and they are also in with the rest of the financial institutions.
If you go to compare products and click on a high street bank name, it takes you to a page where it shows the product details of whatever that bank has on offer, however, if you click on the name …
Here is a list of the deposit products in Ireland with the highest interest rates at present.
Demand account: Anglo premium demand 4.75% 7 day notice: Anglo 2% 21 day notice: PTsb 21 day saver 4% 1 month: Investec 3.25% 75 days: PTsb 3.6% 6 month: Investec 4.25% 1 year: Anglo 4.9% 18 month: EBS 6%
If you want to consider your deposit options you can contact us on 01 6790990, although we don’t have deposit agencies with every lender listed in the top position, so in some cases we’ll have to send you direct but in any case we can still help you choose the best deal on the market. All rates are up to date as of 20th of April 09′ and are subject to change.
Did you ever wonder why some people seem to be doing better in the investment arena than you? Or why certain people seem to always lose or consistently win? The truth is that there are very few ‘superstar’ fund managers, like in any industry there are those that are the best and they totally outshine the millions of others who do the same job but never to the same degree.
If we were to look at some of the factors that may have an effect on your investments you can quickly identify that there are those which you cannot control, and therefore can only hedge against, and those that are within your control for which you are responsible and must consider, these will now be considered:
1. Being too conservative: If you stayed only in the safest areas of the market you would actually lose money over time as the effect of inflation grinds down your investments. This would be because the deposit interest rates would likely not give positive returns when you …