Bank of Ireland - New Savings Rate - 6%

The 4% on the SSIA lumpsum is set for three months & then will revert to ECB rate for 18 months.

I'm not sure but I know that some of the other regular savers change rate if you make more than a certain number of withdrawals a year.

Always read the small print in these products !

We do not have brochures - this is not official but it's what I've been told - because it's suspected the ECB rate may go up again shortly & brochures could be out of date very quickly.
 
Current ECB rate is at 3.3%.

This rate is changing frequently and it's anybodys guess as to how much more it will change - which is good for savers but not so good for mortgage holders.
 
Perplexed said:
As long as you bring in your closing statement from ACC to prove that your funds have come from an SSIA a/c I'm sure there should be no problem transferring the lump sum into a Special Bonus Saver Account.

Be sure to bring in your ID & proof of your address (the final statement from ACC might be accepted for this)
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- I hope there is no problem and final statement from ACC should be accepted as proof of address but from previous experience guess it will depend on who I get at the Customer Service desk -we will see.
Will only go to Northern Rock if I really have to. I intend to do the €1000 per month on top of the SSIA money.
Thanks Perplexed for your help.
 
Hello,

I received my SSIA cheque in the post on Friday - An Post. Can I open a Special Bonus Saver account by simply taking the cheque into a Bank of Ireland Branch, or must I lodge it first to my normal current account with another bank and arrange a direct debit for both the lump sum and monthly savings amount.

Thanks for your help.

Justsally
 
Perplexed said:
Current ECB rate is at 3.3%.

This rate is changing frequently and it's anybodys guess as to how much more it will change - which is good for savers but not so good for mortgage holders.
Click to expand...
Perplexed;
my SSIA matured from ACC in June I just lodged it in credit union can I now lodge that money in new BOI savings at 4%? I have a current a/c with them and will also be starting the new 6% a/c, thanks for all the info.
 
'potential' however is indeed the word. if you're looking for a guaranteed return, 6% is a good rate. saving and investing are two very different things which reflect different goals/objectives. I must say, i doubt i'd have the dedication to open up reg saver acs with all the different banks! I think two would be my limit, as i'd get very confused! The BOI rate does look like a good no strings attached option - at least in the short run.
 
Yorky,
Deposit a/c's never attract fees, shouldn't anyway.
Also the only tax deposit interest is liable for is DIRT.
I agree with you that if you want to put lumpsums away for a longer term the best way to go is investment. Inflation is running -I'm told - at over 4% so if your money is not earning more than this, it's actually depreciating.

Gravitygirl : I think the ECB rate is actually 3.25...to a few decimal points sorry I can't be more precise, so for convenience we round up to 3.3%.

To put things in perspective. The main objective of all these regular saver a/c's is to get people to continue to save. Saving was something a lot of people hadn't been doing for years till the SSIA's came along & after doing so successfully for 5yrs & at this stage probably not even missing the money, it's a good habit to continue.

JustSally.
You can bring your An Post cheque into your BOI branch along with the final statement, which probably came along with the cheque. Don't forget to bring in ID & proof of your address, if you want to get everything done on the spot. It can be lodged directly into your new SBSA a/c then.

Marcecie : I think you can still lodge this money to an SBSA. The time limit is 6 months so it's still within that time frame. Remember you do have to bring the closing statement with you.

I hope I have answered everyone.
Frankly I'm amazed at all the questions. Where I work our customers have been calling in/phoning us all week with queries. We're only too happy to answer & I am saddened that some of you don't seem to find your local branch staff as approachable.

Whatever organisation you are with, I just think saving is a good idea. Do read or ask about the terms & conditions of any agreement you enter into, if you're tied in for a fixed term, access to your funds etc. It's important to get your money to make the best return, on terms that best suits you.
 
Perplexed said:
Deposit a/c's never attract fees, shouldn't anyway.
Also the only tax deposit interest is liable for is DIRT
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Hi Perplexed,

This extract from [broken link removed] would lead one to believe that PRSI/Health Levy might also be due? This has been discussed previously on AAM.

"Tax on Interest earned on Regular Saver Account
  • We will deduct Deposit Interest Retention Tax (DIRT) at the standard rate (at present 20%, but this may change), from all interest earned, and we will pay this directly to the Revenue Commissioners.
  • You do not at present have to pay other Irish income tax on the interest, but you may be subject to PRSI/Health levy"
 
[broken link removed] [broken link removed]

Deposit Interest


Deposit Interest that has been subjected to DIRT is taxable under Schedule D Case IV. The DIRT deducted is deemed to cover the tax liability arising on this income in full irrespective of the marginal rate of Income Tax ordinarily paid by an individual. However individuals are still required to declare this type of income to Revenue.

DIRT Refunds If an individual is aged 65 or over or they are permanently incapacitated, they may be entitled to a refund of DIRT. For more information on this please [broken link removed]


With regard to absolutely straight forward deposit a/c's where the interest is paid once annually I feel sure that DIRT is the end of the tax liability.
There are however more complicated types of deposit a/c's where PRSI & Levies may apply depending on your Tax Status ie. Self Employed etc.

I'm not an expert on the tax situation so I am open to correction on this.

I think we all consider PRSI & Health Levy as Taxes but Revenue doesn't.

I've tried to answer the questions re the opening criteria & operation of these a/c's. I'll withdraw gracefully now & leave the tax bit to people more experienced in this area. From reading the previous discussion - thanks Sueellen for drawing attention to it, it seems like I'm not the only one confused. Happy savings folks whatever form it may take!
 
Perplexed has given good information and responses also very helpful. What a pity Bank of Ireland have yet to update their site with all the new relevant information. They are still advertising the 4.75% rate (10.30am, 4th Dec) when the 6% was supposedly launched on 1st Dec. I am now off to my Bank of Ireland for the info.
 
I rang my local branch and they opened an account for me, but didn't have any brochures to send so I do not know the full T&Cs. Don't worry, I haven't signed anything yet ;)
 
I went into B/I on monday last to set up this a/c. My SSia had matured last month so the girl said it had rolled into one of these new a/cs so there was no need for me to open an account. I wanted to use my lump sum to fund the DD for €1K per month. From what the girl told me I would have to take out the 1K each month and put into my c/a and then a Direct Debit would transfer it back into the same account!!! She also told me that the lump sum would attract a certain interest and the monthly amount would get the 6%. If I am taking the money out each month how would be bank know that I was taking from my lump sum and not from the new savings. I felt it would be much better if I could open a new account and the 1K would go into it each month and it would be clear that I was saving this amount.
I am not sure if I am making myself clear but I find the entire account is very confusing with two amounts of money in the same account getting different interest. I also rang banking 365 last night and she was not sure what the situation is I also asked her if the interest would be broken down between the two rates. She could not answer that question either.She advised me to take the entire amount out and put into my c/a and let the DD take care of everything!!
 
It seems they go out of the way to make things complicated -would be interested in an answer to the above - I certainly wouldnt attempt to answer. Do other bank's in other countries carry on like this with one a/c and two different interest rates. Also is this a/c open-ended -havent seen this mentioned anywhere?
 
I think we have to wait to see the T&Cs - until then speculation about it is indeed just going to lead to confusion.
 
I must say that they seem to have botched the launch of this product!
 
* Terms and conditions apply. - Anybody know what these are. The last time I went into Bank of Ireland for the terms and conditions of the FREE Current a/c they just handed me the same brochure they had posted out to me which said terms and conditions available on request. They are not on the website -somebody please help.
 
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