Best deposit rates in Ireland November 2009

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.

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Bank margins after NAMA

The current debate is raging over NAMA and the pricing of loans, much of it centres on the value of the properties in question and about the way in which a ‘loan’ is valued (as opposed to the underlying asset). This makes for good headlines, but it doesn’t help the average person who is not shaping policy and who’s sole role in this mess will be to carry the can and pay their part in the tax pool which will ultimately fund the bailout.

However, you may be affected in other ways, and these are things which you have the choice of opting out of, namely that of the margin you are paying if you currently have any debt/credit outstanding.

Once NAMA comes in it will be extremely likely that banks increase their margins, it is important to consider the ‘why’ as much as the ‘when’ though so we’ll take a look at those.

Why?

PTsb lead the way on this, because they are not getting NAMA protection they have no need to worry …

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Track that Yield Curve! ECB effects.

Today the FT has reported that the ECB will offer unlimited 12 mth repo facilities to banks, this is a big step for the generally hawkish bank. Note: Unlimited.

We have said on this blog/radio/national papers that the 1% mark is not likely to be passed due to the compression it causes on banking profits (the ZIRP policy was one of the inherent issues with Japan’s lost decade). So the opportunity to get in at what is being touted as the historic low, not to be repeated, will have an effect and the belief – at least in this house – is that it will be on the right hand side of the yield curve.

Undoubtedly banks will now gather every available piece of collateral and cash it in. Remember you heard it hear first: this will cause a problem in about 12 months time when the piper has to be paid and everybody is cashing out/back in …

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A look at Euribor, GBP Libor, and Libor

The graph below shows that despite different base rates in the US, UK, and Europe that our general interbank lending rates are correlated.

One of the issues the US has been struggling with is to get their long term rates down and you can see in the 5-7 year money range (I don’t have the 10yr TNote figures to hand), the idea is to get lending kick-started again, credit flowing is healthy, just not at the bubble levels. The 5yr figure is significant for personal lending and financing away from credit cards via personal facilities.

On the GBP Libor and Euribor the two yield curves are roughly matched so despite the UK having a base rate which is a full 75bips less than the ECB base they are still trading at higher margins. This is down to historic money pricing in the UK and it shows that Europe is truly pursuing a ‘middle of the road’ approach to rates, while the media focus is purely on the base rate …

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A ‘Knowledge’ based economy

Today the Irish Times had an article about an American University opening a college here, in Dungarvan Co. Waterford. It occured to me that the Island of Saints and Scholars could do with trying to encourage this type of investment if we are to truly become a ‘knowledge economy’. In creating centres of excellence it is vital to ensure that the best research and advancement is happening in a certain place, in I.T. that may be Silicon Valley, in Finance the City of London prevails.

Harvard University Professors are not paid millions, rather they teach there for prestige. With Universities such as Trinity and our strong heritage of learning (if you want an interesting take on our written word tradition a book called ‘How the Irish saved civilization‘ is fascinating) there is no reason we should not see more universities wanting to locate here and have …

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A 'Knowledge' based economy

Today the Irish Times had an article about an American University opening a college here, in Dungarvan Co. Waterford. It occured to me that the Island of Saints and Scholars could do with trying to encourage this type of investment if we are to truly become a ‘knowledge economy’. In creating centres of excellence it is vital to ensure that the best research and advancement is happening in a certain place, in I.T. that may be Silicon Valley, in Finance the City of London prevails.

Harvard University Professors are not paid millions, rather they teach there for prestige. With Universities such as Trinity and our strong heritage of learning (if you want an interesting take on our written word tradition a book called ‘How the Irish saved civilization‘ is fascinating) there is no reason we should not see more universities wanting to locate here and have …

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Euribor, the distant cousin of the ECB base rate

We have written in the past about tracker mortgages becoming an endangered species. It seems that now we are witnessing the demise of them, the interbank rates and the ECB have become so disparate to each other that one is no longer an accurate gauge of the other. What does that mean?

The ECB is the rate set by the European Central Bank, and it is the ‘base rate’ (currently 4.25%), but banks can’t generally borrow at that price and instead they buy on the ‘interbank‘ market, this is the largest market in the world in which over 1.9 Trillion is traded every single day! It is how banks access the ‘Euribor‘ market (European interbank offered rate). This is basically run as an auction and because liquidity is an issue we have seen the prices of the Euribor rise and rise, demand is outstripping supply.

Why is the Euribor rising? Simply put, fractional banking means that banks must have a constant inflow of money …

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What are the best mortgage rates? Mortgage Interest Rates explained.

What are the best Irish mortgage rates? What are interest rates and where do they come from? These are all good questions and in today’s post I hope to answer some of them.

Often I find that people call me and ask ‘what’s the best rate’ and then there is silence on the other end of the phone as they await an answer. The truth is that at any given time there is a ‘best mortgage rate’ out there, but normally there are restrictions surrounding it which inhibit the ability for most borrowers to avail of them.

We have come out of eight rate hikes which began at the end of 2005, and in an upward rate market people often feel that their old loan has become expensive, in fact it’s not necessarily the case that the ‘old loan’ is exceptionally dear, its that the rate market has gone up and therefore the cost of all loans has gone up, when we talk about the greater ‘debt burden’ that’s what we are referring to, because car loans, higher purchase, leases, …

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predictions for 2008

I have five minutes to go before I have to leave so here are a few of my predictions for 2008

I had mentioned buying northern rock shares a while back, and i am pleased to see they took a 7% jump in the last few days. I think the rationale holds true, there is too much at stake for government to allow them to go bust, mainly because the Bank of England gave it more support than it ever should have. This predictions looks likely to come to a good end, just not for most of the shareholders

Next, I have a new prediction for today, and it has to do with the 40 billion cash injection that the Fed gave the market, the base rate may not get cut in the early new year but I have a feeling that the US interest rate will go down further, maybe as low as 3% before this worldwide crunch is over. The problem still boils down to interbank distrust because their rates are extraordinarily high. the Euribor hasn’t come down …

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Credit Freeze and the effects on the ECB

The credit markets in the U.S.A., Asia, and Europe are in the midst of a freeze at the moment. Banks are not willing to lend to each other hence the big hike in the Euribor (European inter bank ordinary rate: this is the rate that banks lend to each other at) rates and in the U.K. the Libor (London inter bank ordinary rate) rates, they are trading much higher than the central bank rates and this indicates that there is (to a degree) a general mistrust between banks, mainly because they don’t know the exposure to sub-prime exposure the other may have.

The response thus far has been a Fed rate cut, this came a little late, and the indication is that Ben Bernanke will cut the rates again within the next week. Earlier in the year (March 28th) Bernanke claimed that ‘the impact on the broader economy & financial markets of the problems in the sub-prime market are likely to be contained’. Later in June he again re-iterated that there was not a strong chance of a spill-over into …

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