EBS Members Loyalty Bond

Hi

I know very very little about investments/pensions/financial products etc. but am trying to do something about it. - am 25 so feel its about time. I wonder if someone could give me their opinion on the I am a saver with the EBS and noticed they were offering a members loyalty bond which has the following features:

• *6.1% gross return after 18 months fixed term
• Minimum Investment is €1,000 and the maximum is €20,000
• Savings are 100% Secure
• No fees or charges
• Open to members who have been with EBS for three years or more
• One account per qualifying member
• No further lodgements or withdrawals during the fixed term

*C.A.R. 4.03%. Interest subject to DIRT, currently 20%. Available for a limited time only. Terms and conditions apply.

I have a very small amount of loose cash (€1300) which i was going to put into it this bond - good decision or bad? Could i get better elsewhere? I figured it was good for 18 months and i would make more on it than just an ordinary deposit account.

Could someone enlighten me as to what C.A.R is? Google was only giving me results about the motor variety!

Any opinions would be appreciated!
Thanks!

The CAR (compound annual rate) of 4.03% doesn't compare well to deposit accounts on offer from Rabo or Northern Rock, nor do the terms and conditions. See here for other options.

The 6.1% is not an annualised rate - it is the total you will receive before tax for 18 months.
4.03% is the actual rate which is what you use to compare against other accounts.
Your money is locked in for the 18 months.
Bottom line -this is no great great reward for your loyalty as there are instant access deposit accounts out there paying better returns as per CCovich's post.

Hmmmm. Thanks very much for the info - most enlightening.
So not knowing what C.A.R meant was doing me harm...

Suddenly i am not feeling so loyal toward my local branch...

That RaboDirect online instant access deposit account looks like a much better option...

Thanks again.
Much appreciated.