Hi all,
I have some savings that are scattered around various banks - mostly in fixed term accounts that will be maturing over the next few months. They started when the interest rates were at a much higher level but the current rates are not looking quite as attractive now. I'm thinking that i probably won't need all of the money anytime soon so am considering putting part of it in An Post Saving Certificates which offer 21% tax free over 5.5 years (3.53% a.e.r.). I can always withdraw early if needed.
Just wondering if anyone with a better understanding of how things work could give an opinion on how this interest rate is likely to fare against inflation over this time period. I know that nobody can know for certain but i would be interested to hear people's opinion of which of the following outcomes is most likely:
1) interest to exceed inflation
2) interest approximately keeping pace with inflation
3) inflation to exceed interest moderately(>1% per annum)
4) inflation to exceed interest greatly (>2% per annum)
Thanks
Caoimhe
I have some savings that are scattered around various banks - mostly in fixed term accounts that will be maturing over the next few months. They started when the interest rates were at a much higher level but the current rates are not looking quite as attractive now. I'm thinking that i probably won't need all of the money anytime soon so am considering putting part of it in An Post Saving Certificates which offer 21% tax free over 5.5 years (3.53% a.e.r.). I can always withdraw early if needed.
Just wondering if anyone with a better understanding of how things work could give an opinion on how this interest rate is likely to fare against inflation over this time period. I know that nobody can know for certain but i would be interested to hear people's opinion of which of the following outcomes is most likely:
1) interest to exceed inflation
2) interest approximately keeping pace with inflation
3) inflation to exceed interest moderately(>1% per annum)
4) inflation to exceed interest greatly (>2% per annum)
Thanks
Caoimhe