e18,000 needing a home

[sapmanie]

Hi,
I'm taking approx. e18k out of EBS reg saver a/c as rate has fallen from 5% to 2.35 :-(

What do you think of this plan:
Open a First Active regular savers with e1000 (and e1000 monthly after that from wages), and put remaining e17k into Rabo fixed term, for 1 year or so?

I already have a fixed term in AngIB due to mature in March and despite the optimism of ppl here, I would rather not put more money in that bank. That said, how much safer is FA does anyone know?

My 2nd question is the on-demand a/c rate in Rabo is 3.45% but money in their term a/c has to be there 4 years before it beats that rate - am I missing something, i.e. When does it become better to have e17k in the Term rather than On-demand?

[broken link removed]

 

[Lightning]

Hi,
I'm taking approx. e18k out of EBS reg saver a/c as rate has fallen from 5% to 2.35 :-(

Good Move.

What do you think of this plan:
Open a First Active regular savers with e1000 (and e1000 monthly after that from wages), and put remaining e17k into Rabo fixed term, for 1 year or so?

If you don't want to go with Anglo Irish then First Active is a good option for regular savers.

Rabo is not a good option for term deposit at a very low 2.3%. There are much better rates for one year term deposits elsewhere such as Anglo at 6.00% (1 more day), Halifax (new rate TBC on Monday) or Northern Rock at 5.00%.

I already have a fixed term in AngIB due to mature in March and despite the optimism of ppl here, I would rather not put more money in that bank. That said, how much safer is FA does anyone know?

50,000 GBP is guaranteed with the UK government.

My 2nd question is the on-demand a/c rate in Rabo is 3.45% but money in their term a/c has to be there 4 years before it beats that rate - am I missing something, i.e. When does it become better to have e17k in the Term rather than On-demand?

Don't put your money in Rabo. Their rates for both on demand and Term Deposits are very low. You will do much better elsewhere.