For family loans, Revenue states that the interest should be the highest rate of return that the lender could obtain from investing the loan capital on deposit. So what is a logical rate to use?
On the basis that the loan is repayable on demand & is documented as such, then is it natural to only consider on demand deposit rates and not fixed rates?
If yes, then should I only consider Irish pillar banks rates? Not everyone would consider the likes of Raisin, Klarna, Moco etc to be a safe, solid sensible place to put funds on deposit and to support this rational, doesn’t the majority of Irish savers keep their funds with the pillar banks?
Therefore best deposit rate at the moment is PTSB 32 day notice 1.25% — so loan interest would be 1.25% (to be reviewed annually)
Any comments welcome
On the basis that the loan is repayable on demand & is documented as such, then is it natural to only consider on demand deposit rates and not fixed rates?
If yes, then should I only consider Irish pillar banks rates? Not everyone would consider the likes of Raisin, Klarna, Moco etc to be a safe, solid sensible place to put funds on deposit and to support this rational, doesn’t the majority of Irish savers keep their funds with the pillar banks?
Therefore best deposit rate at the moment is PTSB 32 day notice 1.25% — so loan interest would be 1.25% (to be reviewed annually)
Any comments welcome