Bank of Ireland - New Savings Rate - 6%

They gave me the T & C for the Saver account when I opened it. It's been around for a while, the major change is the rate for the savings portion. The SSIA deposit portion seems unchanged.
The rates haven't been updated in the document.
 
Just for the info, I was in the BoI earlier in the week to increase my monthly contribution to the €1000 max. I was dealing with their financial advisor. She said that we could have as many of these accounts as we wanted. She said that nowhere in the T&Cs does it limit a customer to only one of these accounts. Perhaps this is useful information to somebody with more money than I have to save! However, I am looking at setting up a second one with a small monthly deposit just to have the option to increase it if and when possible.

Clig.
 
That's just crazy -so if I could afford it I could feed say 5 €1,000 amounts into five separate a/c's instead of just having one putting in €5,000 -madness!
 
That's right. It did seem a bit odd to me and I quizzed the advisor on it but she was adamant that it was no problem. She said she has set up more than one account for other people. I'll give it a go with a minimal initial monthly deposit and see what happens.

Clig.
 
According to the terms and conditions of the special bonus saver account at Bank of Ireland section 2.9 states ''only one account can be opened per account holder.''
 
Does anyone know how/why the banks can suddenly give such generous interest rates for regular savers? i.e. rates more than mortgage interest rates

Is it simply a loss leader?

Or could it be that several banks are concerned about their cash-flow?
 
well as it's only for regular savings and not lump sums, if you only save for a year let's say they only have to pay the full 6% on the first contribution, then 6%*11/12 on the second contribution and so forth until they pay a teeny 6%*1/12 on the final months contribution, so it's not like you can put in 20k now at 6% for a year and get the full 6% benefit. it is a great deal for those who don't have a lump sum atm and will only be able to save on a regular basis anyway. Also I think more people than initially estimated are saving their ssia money so maybe the banks are competiting to keep a hold of the funds?
 
Yorky poses a very interesting question and one I have thought about seriously i.e. make extra capital repayments on a mortgage @ 4.35% versus NR at 4.15% and drip feed the allowed €3050 into the various RSAs' at 6% plus. Would need Ronaldo to work it out. At the moment I think pay off some capital but then one must think of mortgage relief. Its a tough call.
 
Apologies if this question is very basic but in the case of a lump sum v regular savings does anyone know if there is something to stop a SSIA holder withdrawing the lump sum periodically and drip feeding the max contrbution into the regular savings account to avail of the 6%? Would there be any advantage in this? I realise this would only apply if the regular contribution is under the max allowed?
 
Yorky said:
Incorrect, I pay PRSI and levy every year on deposit interest.
Click to expand...

I checked this on the revenue website

You only pay PRSI/health levy on Interest if you are not classed as an employee. This is from a PDF leaflet on the site " a guide to self Assessment"

"PRSI is not payable on income taxed under Self-Assessment by a person :​
​
​
who is an employee (other than a proprietary director) only or
occupational pensioner and whose selfassessed income consists of
income from investment, rents, etc.,"​

 
Cligereen said:
Just for the info, I was in the BoI earlier in the week to increase my monthly contribution to the €1000 max. I was dealing with their financial advisor. She said that we could have as many of these accounts as we wanted. She said that nowhere in the T&Cs does it limit a customer to only one of these accounts. Perhaps this is useful information to somebody with more money than I have to save! However, I am looking at setting up a second one with a small monthly deposit just to have the option to increase it if and when possible.

Clig.
Click to expand...

Only one SBSA account can be opened per customer with BOI.
 
Following up on Gravitygirl's post:

([email protected])+11/12([email protected])+10/12(1000.06)+9/12(1000.06)+....
produces 390 before dirt and 12,000 sitting in your bank account. After dirt, this gets knocked down to 312. When you look at the interest rate, you get all excited and think that you have a great investment opportunity. Certainly, when I first looked at it, I conjured up 720 as the interest on 12k and this then knocked down to 576. It's a bit of a let down when you look at it carefully.
 
So from what bos4 is saying, if you have €12,000 it is better to put all into say Northern Rock @ fixed rate of 4.25% now rather than drip feed €1,000 per month at Bank of Ireland @ 6%? Putting €12,000 into Northern Rock would yield €408 after dirt tax whild bos4 says investing @ the 6% would only yield €312 after dirt tax with Bank of Ireland.
 
I opened one of these accounts today, it was very straightforward.

Direct Debit set up to take €1,000 from my AIB account every month, interest rate is 6.25%

Just hope they raise it to keep up with others.

Now waiting for Bank of Scotland to get back to me to set up their offer too...
 
I have set up one of these Special Bonus Saver Issue 7 a/c's and will sit back as the ECB rate goes up and up-I hope!
 
Perplexed,

*ouch* I've just noticed that I didn't acknowledge the advice you gave me on 3rd December. Better late than never I hope. Thanks again.

Justsally
 
oldtimer said:
So from what bos4 is saying, if you have €12,000 it is better to put all into say Northern Rock @ fixed rate of 4.25% now rather than drip feed €1,000 per month at Bank of Ireland @ 6%? Putting €12,000 into Northern Rock would yield €408 after dirt tax whild bos4 says investing @ the 6% would only yield €312 after dirt tax with Bank of Ireland.
Click to expand...

If u drip feed from nr into bof i does this example miss the interest you would be also be earing on the lump sum, ie the money still in the nr account before its lodged to bof i?

So if u have €20K in nothern rock earning interest at 4.15, then at end of month u have 19k earning 4.15 and 1000 at 6.25, then 18k and 1k @ 6 and 1k @ 6* 11/12

Is this accurate?
Is there an approx amount at which it is not worth dripping out of? (eg if u have €30k on deposit is better just leave alone?)
 
I got my annual interest dated 20 Mar which presumably included 4% on my Lump Sum Balance and 6.25%aprox. on my Regular Savings Balance. Will this interest itself get 6.25%? I want to withdraw from this account so should I just take out exactly the Lump Sum Balance amount? I can get a better rate elsewhere for this than 3.75% aprox.
 
What about the EBS offer?

The best offers then are AIB, BOI, Hallifax, Anglo for regular savings and Rabo for sums up to 10K.
 
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