Advice needed on best deposit account to open

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Moon light

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Hi, am hoping someone can help me out, I have read through the deposits section but have a few questions as I am not very clued in on this,

I very foolishly fixed my mortgage from Dilosk in order to avail of a 1% drop, they moved me from 4.5% to 3.5% and I locked into a 3 yr fixed rate with them in Oct 15, I still have 19 more mths to go until I am out of the fixed rate,

I then got redundancy and would love to pay about 60k off my 3.5% mortgage, but have to wait another 19 more mths to do this !

My question is what is the best value at the moment to lock away the 60k so I at least will have made some interests on it as it is annoying me now that I locked in for so long,

I see there is a 3% regular savings account with KBC but you have to open a current account also, I know the 3% is only for the first yr, (I would be happy to do this for one yr)
I see also that you pay DIRT at 39%,

Or should I be opting for a different type of account whereby I lock away a lump sum, I think the return on this is smaller and I would still pay DIRT, is this right?

Can someone pls let me know which would be the best option to get the best return even if only for 1 yr or 18 mths to get me to Oct 18

Thanks so much,
 
The rate for that KBC account isn't just for the first year, it'll stay at 3% until they decide to change it (only KBC know when that will be). Also, it only allows you to deposit €10,000 initially and a further €1,000 a month after that. You could open an instant access account (it would pay less interest) and use that to feed the €1,000 into the KBC regular saver account.
 
Have a read of the best buys here.

To get the highest return open up multiple regular saver accounts and drip feed into the accounts.

If that is too much hassle, you could open up a term deposit for the 1 year 6 months period. KBC offer 1.05% AER fixed for 1 year but you need to open a KBC Extra Current Account to avail of this. KBC also offer 0.80% AER fixed for 1 year 6 months for all.
 
Thanks so much Connard and Ciaran T for the advice, The part that is annoying me so much is that I could be saving 400 per mth on my mortgage had I not locked in, I am now trying to see how much of this I can save but I am finding it hard to work out,

If I do the higher return acc - The Extra Regular Saver acc @ 3% with KBC and open up one in my name and one in my husbands name, can either of ye advise me how much I could potentially make in interest over the 19 mths,

So I could deposit 10k into both accounts and then set up a standing order to drip feed 2500 per mth into each acc ( would I have to do this manually each mth or would my current bank AIB set up a standing order so that this happens automatically each mth incase I forget,

Then KBC would take 2000 per mth (1000 each) from the current accounts into the savers account,
So at the end of 19 mths there should be 10k + 10k + 19k + 19k = 58k so 29k in each acc (hope I am making sense here)

So can someone tell me how much interest approx. after DIRT would this make,
It seems like a lot of hassle but the best savings return, Is that right, has anyone done this drip feed in order to earn interest ?

Or would I be better off opening up the 1.05% KBC acc, and deposit 50k and then open up the current acc, drip feed in the 2500 per mth for the year and let them transfer over the 1000 so at the end of the 12 mths, there would be 62k - I see this doesn't roll over after 1 so I would not be making anything after mth 12, is that right,

The only good thing is at least I would only have to think about 1 acc and not 2 so it would be easier to manage, but the return may not be as good,

Any advice is much appreciated, Thanks,
 
Did you check with the lender what the breakage fee for the fixed rate would be? Just to see if it was financially worth it to break out early.
 
Hi Monbretia, I haven't as I am afraid to ask !!!!!
I will check with them tomorrow and find out,
 
Deposit Interest won't bring you anything like €400 a month that you say you could save by putting the €60,000 into your mortgage.

If you take the simplest route, put the €60,000 in KBC 1 year deposit at 1.05%, and following that move it into the 35 day notice deposit at 0.65% (if this is still the rate) for 7 months, after Dirt you will have gained something like €523 in interest at the end of 19 months..

Or, you can open 2 Extra current accounts, 2 regular savers at (currently) 3%, and a Smart Move Online Deposit Account at 0.45%.
You set up standing orders for €1000 each month from each current account into the Regular Saver.
You put €10,000 into each Regular Saver at the start, and the balance, €40,000 into the SMODA.
I don't know if you can set up a standing order from the SMODA, I think you would have to remember to transfer €2500 each month into one current account, then the other, send €1000 back to the first, and €500 back into your SMODA, just before your Regular Saver standing orders go out.
IF you can follow this, and IF KBC do not drop their interest rates, at the end of 19 months it would result in about €1330 after Dirt.
 
Gervan said:
Deposit Interest won't bring you anything like €400 a month that you say you could save by putting the €60,000 into your mortgage.

If you take the simplest route, put the €60,000 in KBC 1 year deposit at 1.05%, and following that move it into the 35 day notice deposit at 0.65% (if this is still the rate) for 7 months, after Dirt you will have gained something like €523 in interest at the end of 19 months..

Or, you can open 2 Extra current accounts, 2 regular savers at (currently) 3%, and a Smart Move Online Deposit Account at 0.45%.
You set up standing orders for €1000 each month from each current account into the Regular Saver.
You put €10,000 into each Regular Saver at the start, and the balance, €40,000 into the SMODA.
I don't know if you can set up a standing order from the SMODA, I think you would have to remember to transfer €2500 each month into one current account, then the other, send €1000 back to the first, and €500 back into your SMODA, just before your Regular Saver standing orders go out.
IF you can follow this, and IF KBC do not drop their interest rates, at the end of 19 months it would result in about €1330 after Dirt.
Click to expand...

The Smart Move account doesn't allow standing orders to be set up so a lot of this would have to be done manually.
 
Yes, Connard, not something I really recommend, especially as there is no guarantee deposit interest rates will not fall further. It's just that the OP asked for the "option for the best return". Putting the lump sum into the mortgage sounds like the best option, if possible.
 
Hi everyone thanks so much for all advice ye are giving me,
So I called Dilosk and to break out of the fixed rate will cost €4400 ! Still cant believe I locked in for so long !!

I overestimated the savings above - my error, if I were to pay 60k off the mortgage, I would save €330 per mth not €400,
So over the 19 mths I am missing out on savings of €6270 (€330 x 19mths)
With the fixed rate I was allowed to overpay by 10%, I did pay off 10k a few months ago so I may as well go ahead and pay off the other 6k,

I am not fully following what I have to do with KBC, if someone could clarify that would be great,

Am I right in saying:
I open the 2 KBC extra current accounts (One in my name and one in my husbands name)
2 regular savers accounts @ 3% and put 10k in each of them, (one in my name and one in my husbands name)
And the SMODA @ 0.45% and put in 40k,

Then each month I manually transfer 2500 from SMODA into one of the current accounts,
Then when the 2500 is there, transfer 1000 of this over to the second current account and send 500 back to SMODA,

Then set up 2 standing order so that 1000 leaves each current account to go the regular savers accounts, so in total 2k will leave the current accounts to go to the saver accounts,

Is that right, am I on the right track here ?

A question I have is could I not just transfer 2000 from SMODA into the current accounts,
so transfer 1000 to the first current account and 1000 to the second one on the same day each month,
Does this make sense instead of transferring over 2500 into one and then sending 1000 to the second one and 500 back to SMODA, ?


Thanks again for all the help,
 
To get the 3% rate on your Extra Regular Saver accounts each current account has to have €2500 lodged, every month. That's why the back and forth procedure.
And that 3% isn't fixed, but could be reduced any time.

If it costs you €4400 to break out of the fixed rate mortgage, but you would save €6270, that is still a net saving of €1870. Isn't that better than fiddling about with multiple KBC accounts?
 
Tks Gervan, yes it makes more sense and I see the logic but its just killing me to pay so much to break out of a fixed rate, and yes there is a lot of hassle messing fiddling about with multiple acc's,

I am not following the part where you said - send €1000 back to the first, and €500 back into your SMODA,
if you could clarify this part that would be great,
tks a mil
 
Because EACH Extra current account must have €2500 lodged in each month to qualify the Extra Regular Saver for the 3% interest, you have to move €2500 to current account 1, then the same €2500 to current account 2.

Now you can move back €1000 to current account 1 to be ready for the standing order the next day.

That leaves €1500 in current account 2, but you only need €1000 for the standing order to the Regular Saver, so €500 can go back to the Smoda.

Would the €4400 penalty decrease if you wait a couple of months? Can you bargain with the mortgage group?
 
if your mortgage was originally an ICS mortgage you may( if they used the ICS documentation in Oct 15) be able to pay off up to 10% of the balance each year without penalty . Check your documents or ask Dilosk this specific question .
 
This all sounds akin to driving from SuperValu to Tesco to save €1.50 on a bag of spuds whilst spending €1.60 on petrol.
 
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