Advice please. Anglo 5.25% one year fixed or Invested 5.5% fixed six months

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François

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Hi, I am hoping to invest some savings for approximately a year and I have been looking at Anglo Irish Banks 5.25% fixed rate for one year and Investecs 5.5% fixed rate for six months.

Is the 12 month Anglo rate a better option considering interest rates may well fall in six months time when with Investec account has matured.

Or would the safer option be Investec considering what is happening at Anglo Irish Bank at the moment?

Thank you
 
Your Anglo deposit would be 100% Irish state guaranteed while 50,000 GBP of your Investec deposit would be UK state guaranteed. Little/nothing to worry about.

Are you better locking for 6 months at 5.58% and then looking around again for another 6 months or locking for 12 months at 5.25% ?

Nobody knows for certain but many speculators says that the ECB rate will drop by 1% by the summer. Assuming that this happens and assuming the market leading rates decline by the same rate then you are better off locking at 5.25% if you are happy to have no access to funds for a year.
 
I was looking for the best 1 month demand account out there and see that most of the institutions are offering v poor rates. However the Anglo Irish Premium Demand Account (which requires no notice) appears to be offering a high rate of 5.5% up to e100,000. Why does that make sense given that 30 days notice must be more profitable for a bank?
 
The best rates are normally not in notice accounts.

The Anglo offer at 5.50% is finished. The best on demand rate is now 5.00% with Northern Rock.
 
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