Any risk in opening an Anglo fixed term deposit?

Discussion in 'Deposits' started by bravo, Jan 17, 2009.

  1. bravo

    bravo Frequent Poster

    Considering the attractive 6% on offer from anglo for fixed term deposits. Any risk with the current goings on? I know the capital amount will be safe, but will the interest be guaranteed up to the point where the bank goes out of business, if this happens?
  2. doasido

    doasido Guest

    Hi Bravo,
    I guess there's a risk with everything. I opened a one year fixed 6% last month and don't regret it. According to yesterdays Irish Independent, the 6% rate is being cut to 5.2% on Tuesday next and apparently Halifax's 5.6% is being reduced from close of business today. If anything state ownership is more reassuring in these times than macho CEO's insisting they can go it alone.
  3. trebor

    trebor Frequent Poster

    Interesting question about the interest. Can anyone confirim if accrued interest is guaranteed or just the amount the saver has on deposit?
  4. twofor1

    twofor1 Frequent Poster

    Have a look at the Credit Institution (Financial Support) Scheme 2008 FAQ’s, it states;

    20. Is interest on covered liabilities covered by the guarantee?
    Yes. The guarantee covers interest due and unpaid to the point at which a call under the guarantee is made by a creditor.
  5. Nermal

    Nermal Frequent Poster

    Anglo is no more risky at this stage than any other Irish-owned bank. There's a decent possibility they will all be nationalised in time.

    However with any Irish bank you still have the very real risks of Ireland leaving the Euro, the government 'nationalising' your assets off their own bat or on being told to do so by the IMF etc... I would say there is significant possibility of both of these outcomes in the other PIIGS countries and of the latter outcome in the UK.

    So if you can get some of your assets out to a safer country it might be prudent to do so.
  6. bogle

    bogle Frequent Poster

    Just my humble opinion but ...
    The Euro and European Union are political projects with the latter originating shortly after the Second World War (with the objective of getting European countries working ever more closely together so there wouldn't be any more major wars on the continent of Europe).

    I think it’s very very unlikely that Ireland will be leaving the Euro anytime soon. The political damage to the European project of any country departing Euroland would be immense and would undo decades of work (some would say scheming ;)) of the Eurocrats.
    We know the economic situation is very very difficult but personally I think the negative vibes are being over done (especially in the media) and it’s causing some people to panic unnecessarily.

    I've got a regular saver account with Anglo and am happy enough to leave my money on deposit with them.
  7. Nermal

    Nermal Frequent Poster

    I thought it was unlikely that Bear Stearns or Lehman or the world's largest insurer would go bankrupt, or that most banks in the Western world would be de facto nationalised (or de jure like NR, B&B or Anglo!), that the credit crunch would even wreck entire countries and that quantitative easing would be on the agenda for every central bank. I agree - it looks unlikely that we will leave the Euro, or that capital controls will be imposed, or that deposits or pensions will be confiscated, and I hope none of these things happen. But in constructing a plan for the future we cannot rule them out.

    No, I wouldn't say that. But I would say: spread your deposits across more than one Irish bank, and if possible, to non-Irish banks.

    I declare an interest: I'm availing of the regular saver and fixed term products in Anglo.
  8. bogle

    bogle Frequent Poster

    Now that does sound like eminently good advice to me. Thats what I'm doing (if you count First Active as a non Irish bank, it being owned by RBS).
  9. Macattack

    Macattack Frequent Poster

    today is the last day for 6%
  10. ivannomonet

    ivannomonet Frequent Poster

    Excuse my ignorance but is it really worthwhile to lock away lets say 1000 Euro for 1 year just to get 52.50 interest (minus DIRT I assume) ?

    Surely the 52 euro isnt enough reward to lock away 1000 Euro cash for 12 months?
  11. TomOC

    TomOC Frequent Poster


    Is it worthwhile to lock away 20,000 for 1 year and earn 1000 Euro as opposed to leaving it in current account earning 0.5% interest or less? I feel that non fixed rate saving accounts such as Anglo Premium Demand at 5.5% will drop rates a lot over the next few months- hence why I am fixed for a year at 6.5% with Investec.
  12. ardmacha

    ardmacha Frequent Poster

    Exactly. By the summer it will be hard to get 4%, never mind 6%. Mortgages are <4%, these high rates for savings will soon be gone. Since inflation is 1% and falling you'll wait a long time to get 5% more than inflation on your deposits (although inflation may be -2% when you are getting 3% later in year)
  13. CiaranT

    CiaranT .

    Yes, if you don't need the 20,000 EUR during the next year then lock.

    The best rate for a one year term deposit is 5.25% with Anglo Irish.

    Logic says your right. However, On demand interest rates have got more competitive in recent months despite ECB cuts. All depends on how much the bank needs/is willing to pay for deposits.
  14. picassoman

    picassoman Frequent Poster

    What would you suggest as an alternative to achieve a better return ?

  15. el diablo

    el diablo Frequent Poster

    that's what I'd like to know too. most of my funds are still in Rabodirect and I'm looking to diversify a bit more as soon as possible. I already have a decent sized sum locked into a Anglo fixed term account.

    OPTIMUM Frequent Poster

    I agree with Ardmacha - Fixed rate accounts > 5% are a definite no brainer.

    I recently got a First Active credit card for zero % on balance transfers and purchases til sept 09 with a 5k limit. So I'll be opening a Anglo reg saver account earning 8% , while I use the credit card to its max. The easiest arbitrage I have ever achieved !!!
  17. gipimann

    gipimann Frequent Poster

    Getting back to the Anglo Irish Bank 6% fixed rate for a mo...

    I have 3 accounts with AnIB and phoned them on Monday to ask to close one of the accounts (30 day notice, I would forfeit the 30 days interest as per their t&c) and move the money to a fixed rate a/c. As the rate was changing at close of business on Monday, I was advised to scan & email the mandate form to them.

    Haven't heard anything from them, and checked my online a/c today to find the 30 day notice a/c still open, and no sign of a new a/c.

    I will give them a call on Monday, but just wondering if I'm alone in not hearing from them, or did I miss the boat on the high interest rate?

  18. Pope John 11

    Pope John 11 Frequent Poster

    I have a 30 day notice account with them at present....just set up before christmas....I hear the rate has dropped from 5.35 to 4% following ECB rate drop.

    Can anyone tell me where is the best place to put this €20,000 now. I already have an account with First Active Fixed lump sum account & do not want to put it with them.

    I have ready current accounts in AIB & BOI feeding into regular savings accounts with AIB,BOI & FA. (I know persons may say that % wise that BOI & AIB do not offer the best rates however I find it easier considering current accounts with both).

    Back to my question....where do I put my lump sum of €20,000 now. I am open to splitting it up to take the best rates.

    However I would prefer to have the money on hand to make withdrawals in the event of any emergencies & would nearly be better off with a fixed rate (similar to my FA fixed lump sum) & not ECB related.

    Or is Anglo Irish 30day deposit account of 4% ok for now?
  19. camlin90

    camlin90 Frequent Poster

    Investec 5.5% for 6 months or Anglo 5.25% for 1 year
  20. CiaranT

    CiaranT .

    Why not switch/ditch your 2 AIB and BOI current accounts to Halifax as well and get 10.00% interest on the first 2,000.00 EUR.