BOI post SSIA investment offer

What about the other regular saver offers listed ? Last Sunday's Indo did a good review of most of the regular saver products on offer at the moment. Might be online but I can't find it.
 
In the business section of yesterday's Sunday Times they said the Bank of Ireland offer was 6.25% over 18 months which equates to an annual rate of 4.75%.
I presume this article is grossly inaccurate. I thought these attractive saver rates were annual rates...i.e. put simply €1000 saved with BOI for 1 year will yield €62.50 before DIRT?
 
The rates quoted are CARs alright but the effective rate might come from applying that CAR to incremental regular lodgements - e.g. full 6.25% on your first lodgement 11/12ths on the next, 10/12ths on the next etc. (ignoring compounding)? But I'm not sure that the rate is absolutely correct. For example 18 monthly lodgements of €100 at 6.25% CAR yields a total value of €1,889.14 or a return of €89.14 = 4.95% (gross) according to this calculator.
 
ClubMan said:
The rates quoted are CARs alright but the effective rate might come from applying that CAR to incremental regular lodgements - e.g. full 6.25% on your first lodgement 11/12ths on the next, 10/12ths on the next etc. (ignoring compounding)? But I'm not sure that the rate is absolutely correct. For example 18 monthly lodgements of €100 at 6.25% CAR yields a total value of €1,889.14 or a return of €89.14 = 4.95% (gross) according to this calculator.
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Clarity for the customer doesn't seem to be a priority when it comes to these products. It could be argued that claiming these savings products pay in excess of 6% on savings is like Tesco claiming their loan rate is 3.6%. The practical reality in both cases is far different.
Perhaps the Financial Regulator could force banks to use the more relevant figure as the headline figure when advertising? Despite all the discussion on AAM and elsewhere, the perception out there is that €10,000 put into one of these savings plans will earn in excess of 6% per annum.
 
IFSRA have already done their bit.

[broken link removed]

The customer needs to do theirs. Caveat emptor.
 
Similar with most institutions BofI pay out interest once a year. Therefore in the instance of a regular monthly lodgement the rate applied up until the interest payment date is simple. i.e. you earn interest only on the time the money is in the account. Simply put a regular saver lodging €100 pm over 12 months would have average savings of €600 over a 12 month period and should earn interest of 37.50 over this period at 6.25% less retention tax. This is my understanding of the offer based on the BoI info.
 
ClubMan said:
IFSRA have already done their bit.

[broken link removed]

The customer needs to do theirs. Caveat emptor.
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That's great Clubman...been out of the country so didn't see that.
Good work by the Regulator.
 
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