EBS 9 month fixed term account 3.5%

Hi guys,
Could I get some clarification about the EBS account re. post above, Is it possible for existing account holder to lodge 40 grand to open one of these accounts?
I thought I read somewhere that INBS were going to match the interest rate offered by EBS? Whats involved if I am right in restating this?
N.D.,
Fi.
 
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My understanding is that this rate is for "new" customers. I have €20k with EBS but they said that if I add another €20k to it they will give me 3.5% on the whole amount. Otherwise others have suggested that you withdraw your money from EBS, then go back in a few days later with it as a "new" customer. But you only have till Friday to open one of these accounts.
 
Quote from EBS head office which clarifiys that the rate of 3.5% is not given on the original sum invested afer 9 months.

"If you invested €100,000 in the 9 month account the return would be €1,968
approximately. After the 9 months the interest will be credited to the
account. Please note this rate finishes on Saturday 27 February".

It turns out that when you do the calculations you are getting a rate of approximately 2.6% interest for the 9 month term before DIRT is deducted.

The rate of 3.52% is the AER(annual equivalent rate) only.
Hope this helps clarify the real situation out there.
 
hopalong said:
Quote from EBS head office which clarifiys that the rate of 3.5% is not given on the original sum invested afer 9 months.

"If you invested €100,000 in the 9 month account the return would be €1,968
approximately. After the 9 months the interest will be credited to the
account. Please note this rate finishes on Saturday 27 February".

It turns out that when you do the calculations you are getting a rate of approximately 2.6% interest for the 9 month term before DIRT is deducted.

The rate of 3.52% is the AER(annual equivalent rate) only.
Hope this helps clarify the real situation out there.
Click to expand...


Agreed........ BUT an AER of 3.52% is among the best buys at the moment.
 
Hi guys,
Thanks for the follow up. I don't really understand the AER* & its equivalent term, I tend to follow what ye talk about/ suggest. I was going to see if I could apply for this 9mth account but now I am not too sure even if its worth it. Would I not be better with Investec/ Nationwide Ireland (waiting to see what the government bond is offering). Of the above which is offering the best AER?

N.D.,
Fi
*I think AER means the actual rate of interest you get
 
I don't quite understand Hopalong's post. If you invest the proceeds of your 9 month deposit, for a further 3 months at 3.5% ( hypothetical, but may exist in Nov) the interest over the 12 months is 3.52%, as EBS claims. It's up to you what to do with the money in those final 3 months.
If the interest over 9 months was 3.5% gross, the AER would end up around 4.52%.
 
AER is not the rate that you get. AER is the gross annualised rate before DIRT.

See
http://en.wikipedia.org/wiki/Annual_equivalent_rate

(AER is ...) The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.[1] It is used to compare the annual interest between loans with different compounding terms (daily, monthly, annually, or other).
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hey all... rang EBS there and was told this is being extended until next friday
 
Thanks for the information Johnm.

I will wait until EBS confirm the extension before updating the best buys.
 
johnm01 said:
hey all... rang EBS there and was told this is being extended until next friday
Click to expand...

I just got confirmation from EBS that the rate is extended until Saturday March 6th 2010.

Thanks for the information, the best buys are updated

EBS: Fixed Save
9 months 3.52% ** Best Under 1 year Term Deposit Rate**
Note 1: Minimum €20,000
Note 2: The above rate ends on March 6th 2010.
Note 3: The above rate is for 'new deposits only'. Existing EBS customers can get around this requirement by withdrawing EBS deposits and re-depositing it as a 'new deposit'.
Click to expand...
 
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