Anglo Irish Regular Savings

[osullivj35]

Hi,

I am looking at doing some regular savings into the Anglo Irish regular saver account [broken link removed]

Are there any drawbacks to these/other accounts I should look at?

I am looking at putting in €1000/month

Thanks
JMan

 

[elcato]

The only drawback is if you want to keep the 7% you cant withdraw any time in the next 2 years BUT if you do you still get 7% on the amount you had up to the point of withdrawal i.e. there is no penalty for withdrawing earlier than the 2 years other than the account will be shifted to an ordinary savings account which will pay a lower % interest from that point onwards. Does this make sense ?

 

[osullivj35]

I think I can live with that drawback as if I am going to withdraw it will be because I am buying a house and won't be saving any more money

 

[ClubMan]

Remember that you don't earn 7% on the full amount saved over the first 12 months because you are drip feeding the money in. If you save €1,000 p.m. then you will have saved €12,000 over the first 12 months but your actual return will be €450 gross or €360 net of 20% DIRT. Glancing at the figures some people might expect the return to be €12,000 @ 7% = €840. See this calculator.