SBP: Investec To Start Offering 2/3 Year Term Deposits

L

Lightning

.
Messages
5,381
The Sunday Business Post reports that Investec are to start offering 2 year term deposits and 3 year term deposits for the first time soon.

It will be interesting to see if Investec, who have been quite aggressive with their savings offerings, exceed the best buy rates with the 2/3 year term deposits. Anglo are heavily pushing their 2 year term deposit best buy rate and An Post have has little real competition with longer fixed term deposit offerings.

They also started that Investec will top the best buy rates for 6 month and 1 year term deposits "for the foreseeable future".
 
However we are now reaching the stage where a demand deposit + regular saver strategy gives as good a return as a fixed term deposit; plus access to your money and the opportunity to benefit from any increase in ECB Rates

(Of course the ECB may also cut but there's not much further to go)

I have been offered 4.5% over 12 months to roll over an existing Investec deposit but I think I'll just drip-feed to a regular saver.
 
Hmmmm ... Let's do the figures on a 1 year Term deposit versus regular saver with on demand.

Assuming you have the minimum of 20,000 in Investec then the return based on the current best buys is as follows:

One Term Deposit Return
20,000 EUR @ 4.5% for 1 year = 675.00 EUR return

Regular saver with on demand
Average 14,000 EUR @ 3.60% for 1 year = 378.00 EUR return
Average 6,000 EUR @ 5.50% for 1 year = 247.50 EUR return
Total = 625.50 EUR

The above, obviously, assumes that the Anglo Irish rates will stay the same for regular saver and on demand accounts for the next 12 months. This seems unlikely and I personally think these rates will decline further.

Of course the ECB may also cut but there's not much further to go
Click to expand...

Yeah, based on recent surveys it seems more than 50% likely that the ECB will go to 0.75% in either June or more likely in July.

0.50% or 0.25% seems unlikely unless Euro zone wide deflation takes hold, but by no means impossible.

As for increases in the ECB rate, based on media speculation, this is not likely to happen until late 2010.

More weight behind going for the term deposit fixed option, unless you think that unexpected ECB rate increases are in the pipeline inside the next 12 months.
 
Bronco Lane said:
fungus. Do you have any business connection, work for or associated with Investec in any way?
Click to expand...

I have no connection with Investec what so ever other than the fact that I am a customer.

I frequently post about the highest rates and Investec have the highest rates for several savings products as things currently stand.

A while ago I was asked if I work with Anglo when I was frequently mentioning their high rates at the time!

Just helping people find the best rates, I have never posted about any company that I have a business/work connection with.
 
Anglo-Irish have cut back their 2 & 3 year rates a lot. They've re-introduced a 1 year rate at a derisory 1.6%.

Irish Nationwide now have the best 2 year rate at 3.32%.

Rabo's rates are starting to look less bad relative to the competition.
 
That is some drop in the Anglo rates.

Agreed that Rabo's 4/5 year term deposit term deposit rates are close to being considered competitive.

Anyone know when/if the An Post 3/5.5 year term deposit rates ever expire/change?

There really is a need for more competitive offerings in the longer (2 year plus) term deposit market.
 
All bets off.. Looks like it was a typo on website as the rates are still 3.5% for 2 and 3 years now. see
[broken link removed]
 
Fungus - Saving bonds and saving certificates are usually withdrawn without notice. Staff at post-offices get official notice to withdraw sales at close of business. Within days new issues with new interest rates are introduced. Personally I am slightly amazed the current issues are still available. They are getting more attractive each day as all around them reduce rates. I keep watching the An Post website.
 
Yes - the current issue of saving certificates and saving bonds came on sale on 1st August 2007.
 
That's totally incredible that An Post have not changed their rates since August 2007.

It seems that this An Post product is linked to the NTMA funding. As the NTMA need funds these days it would seem unlikely that they will drop rates ?
 
I'd be hopeful they'll keep them up. The DIRT exemption also gives them a significant boost adding to their attractiveness. I can't help imaging lots of people that haven't darkened the door of the post office in years paying it a visit.
 
The Sunday Business Post had an interesting article on An Post rates.

They stated clearly that An Post term deposit rates have nothing to do with ECB rates but rather to do with the cost of servicing the national debt. Therefore, if anything the rates should in theory increase.
 
You must log in or register to reply here.
Back
Top