Current Account vs Online Instant access Account

[boomboom4780]

Hi,

With deposit rates been continually reduced, I have been looking around to see how I can get any kind of return on my modest savings. I have put my savings away in a fixed deposit account. I have roughly 5,000 left over which is in my current account at the moment. I bank with PTSB. I may need access to some of this money during the year so cannot put it in a savings account that I cannot access. I already have a regular savings account so my question is:
Would there be any point in opening an online instant access account ( currently 1.75% ) were i would try to keep around 5,000 in it but will probably be transferring money in & out similar to how a current account operates?
I expect that i would not get much of a return but would this idea be slightly better than just keeping the money in my current account which i hate doing or would there be no difference at all as the balance will drop & rise through the year?

Cheers, BB

 

[rob oyle]

The first €1,500 in a PTSB current account earns interest at 1%, or so I'm lead to believe. Depending on your funds in and out (how many direct debits come out etc.) and how variable your cashflow is in the month, an upper limit of €5,000 in a current account seems like a reasonable amount to be held there.

If you can manage your funds on a day-to-day or weekly basis, you could keep some of the funds in an online instant access account when you know it's not needed.

Really depends how much effort you want to make for (say) €3,000 @ 1.5% less 41% DIRT - €27 a year.

 

[Lightning]

Would there be any point in opening an online instant access account ( currently 1.75% ) were i would try to keep around 5,000 in it but will probably be transferring money in & out similar to how a current account operates?

The rate on the PTSB Online Instant Access product changes to 1.25% AER variable in February 2015.

I have roughly 5,000 left over which is in my current account at the moment. I bank with PTSB. I may need access to some of this money during the year so cannot put it in a savings account that I cannot access.

One option is a Nationwide UK (Ireland) 15 Month Regular Saver product that pays 4.00% AER variable. You are restricted to 2 free withdrawals and you do need to save for 15 months.

Another option is a KBC Regular Saver product that pays 3.50% AER variable. You need to set up a standing order each month for a fixed amount.

Another option is to stick with PTSB and open a 21 Day Regular Saver product that pays 2.10% AER variable given that you already have a PTSB Online Regular Saver. This is a very flexible account. Only 1 EUR per month minimum deposit. 21 days notice required for funds.

The first €1,500 in a PTSB current account earns interest at 1%, or so I'm lead to believe

It depends on the PTSB current account product that you have. The current account product offered to new customers in recent times pays 1.00% AER variable up to 1,500 EUR. The legacy PTSB current account products have different rates or pay zero.

 

[boomboom4780]

The rate on the PTSB Online Instant Access product changes to 1.25% AER variable in February 2015.



One option is a Nationwide UK (Ireland) 15 Month Regular Saver product that pays 4.00% AER variable. You are restricted to 2 free withdrawals and you do need to save for 15 months.

Another option is a KBC Regular Saver product that pays 3.50% AER variable. You need to set up a standing order each month for a fixed amount.

Another option is to stick with PTSB and open a 21 Day Regular Saver product that pays 2.10% AER variable given that you already have a PTSB Online Regular Saver. This is a very flexible account. Only 1 EUR per month minimum deposit. 21 days notice required for funds.



It depends on the PTSB current account product that you have. The current account product offered to new customers in recent times pays 1.00% AER variable up to 1,500 EUR. The legacy PTSB current account products have different rates or pay zero.

Thanks for the advice guys. The 21 day Regular saver seems to be my best option for what Im trying to do. Im aware that there wont be much of a dividend so the effort of changing bank accounts etc for such a small difference is not really worth it for me in this case but atleast ill get a small return rather than sitting in the current account.

Thanks again, BB

 

[llgon]

Thanks for the advice guys. The 21 day Regular saver seems to be my best option for what Im trying to do. Im aware that there wont be much of a dividend so the effort of changing bank accounts etc for such a small difference is not really worth it for me in this case but atleast ill get a small return rather than sitting in the current account.

Thanks again, BB

What about the Online Regular Saver with PermanentTSB? Advantage is no notice period if you wish to make withdrawal.

 

[Lightning]

What about the Online Regular Saver with PermanentTSB? Advantage is no notice period if you wish to make withdrawal.

The OP said they already had a regular saver account. The OP appears to be referring to the Online Regular Saver product. You can only open one of these.

 

[serotoninsid]

Use a UB's special interest deposit account for this purpose - transferring cash in and out of current account to suit. With both being online accounts, it's easy to adjust this as needed on the fly...