BOI Supersaver Account

@DeeKie how did you open two in the one account? Does this work and if so how?

This is the best rate in the market so be ideal if you could pull this off
 
irishfinanceguy said:
This is the best rate in the market so be ideal if you could pull this off
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Bear in mind that 3% APR on a regular saver account where €2.5K is lodged each month for 12 months gives an actual effective return of c. 1.38% gross on the €30K accumulated over the year. That's a gross monetary return of €415 or €278 net after DIRT.
 
@ClubMan thank you

Ive tried repeating that calculation and Im getting approximate effective rate of 1.63%, either way seems like the compounding daily rates are better value?
 
My example used monthly compounding but if I switch to daily it's still only 1.39%. How are you getting 1.63%? Anyway, my main point is that some will think "3%, great!" when they're actually, in practice, only getting a fraction of that even before tax on the total sum in the account at the end of the 12 month term.
 
Wait @ClubMan correct if im wrong but you are still getting “3%” you just need to understand you dont have 30k in it all the time hence the lower return, you are getting 3% on that 2.5k as it slowly builds up.

I think many of us mistakingly assume its 30k@3% but ofcourse you only have a small amount of money in it for the first 6 months

So in effect that 2.5k there is better placed than in a 2% daily interest account, correct?
 
Sorry, I don't really understand the points in your post.

I'm just pointing out that the headline rate on such regular saver accounts may be misleading to some people who might assume that they're getting that rate on the total amount lodged over the regular saver term.
 
irishfinanceguy said:
So in effect that 2.5k there is better placed than in a 2% daily interest account, correct?
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No. How would it be better to have money in an account with less interest?
SuperSaver pays 3% interest, but it is a regular saver not lump sum.
If you have 30K to invest at day 1, it is not the ideal solution.
 
Hey @newirishman, its the best rate you can get @3% with the limitation that it maxes out at €2.5k per month, as clubman highlighted you can open 2 accounts meaning €5k per month.

If you have €30k on day 1, better to put €5k in this (via 2 accounts) and then put the €25k elsewhere
 
newirishman said:
If you have 30K to invest at day 1, it is not the ideal solution.
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Agreed. If you had such a lump sum then you'd most likely earn more interest with one of the non regular saver accounts here even if the headline rate is lower than 3%.

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Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...
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irishfinanceguy said:
If you have €30k on day 1, better to put €5k in this (via 2 accounts) and then put the €25k elsewhere
Click to expand...
You mean make only one monthly lodgement of €2.5K to each of the two regular saver accounts and just the minimum €5 per month thereafter? That way you'll get at least 3% gross on the 2 x €2.5K alright - about €100 after DIRT.
 
ClubMan said:
the headline rate on such regular saver accounts may be misleading to some people
Click to expand...

These accounts are offered primarily to allow the banks to claim that they offer interest rates of “up to 3%” on savings. They probably account for a fraction of 1% of the total on deposit with the Irish Banks. They are a niche product, suited to active savers such as those saving hard to build up a house deposit or a rainy day fund rather than lump sum depositors. The BOI and PTSB and versions (where you can at least continue to earn a reasonable rate after the ceiling is reached) are better than the AIB version which is a complicated muddle designed to capitalise on inertia.

No harm using these accounts to play the banks at their own game if you have nothing better to do with your time, but the benefit to be gained is pretty minimal. For anyone with a sum that they want to put on deposit and earn a decent return without the gymnastics, regular demand accounts such as those offered by likes of Raisin are probably more practical and convenient.
 
@ClubMan correct me if im wrong but you are getting 3% of the money you put in

is the calculation not roughly half €30k if you average the amount in the account over the year so its €15k x 3% you should view it as not 30k

its just its gradually added over 12 months. so if you are saving regularly it is wise to put money in there (obvs more messy for lump sum albeit you could add 2.5k gradually transferring it from elsewhere)
 
The point is that if you start the year with €30k and drip feed the maximum of €2,500 per month, the average return on the €30k is much lower than the headline 3%
 
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