I have 22k built up in current a/c

A

asta

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I have 22k built up in current a/c over the year that I was too busy to sort out.
Have been reading these threads and now thinking of opening eSavings a/c with FA (5.22%) and dropping in 15k and starting to drip the rest into the FA Regular Saver (7.15%) at 1k per month, Is this pretty much the best on offer at the mo.
thanks
 
Not much wrong with what you have in mind but be careful regarding 15k into the eSaving account. If it goes over 15k by as little as 1 cent the entire amount falls back to a 4.33% rate. May be better to deposit 14k or a little more but watch the 15k limit for the higher rate of interest.
If you wanted more interest but a little more hassle you could open other regular saver accounts i.e. Anglo Irish Bank, Halifax, EBS, all offering around 7% also but watch their terms and conditions. The important thing is to get it out of the current account.
 
You'll earn less than €100 pa in interest by dripfeeding the account as you suggest.
Is it worth the hassle. Just put it into the best deposit account available
 
Yes - some people have reported that it may even fall if you just HIT €15K so to be safe only ever have less than €15K and transfer out monthly interest payments if they would push you to or over the €15K limit.
At this stage there are oodles of threads about how to juggle multiple demand or term lump sum and regular saver high rate accounts to get the best overall interest returns which are worth checking out. The Financial Best Buys forum lists summarise the accounts/rates on offer.
 
asdfg said:
You'll earn less than €100 pa in interest by dripfeeding the account as you suggest.
Is it worth the hassle. Just put it into the best deposit account available
Click to expand...
It's not necessarily that much hassle. Personally I would prefer not to encourage inertia and "loss" of potential deposit interest returns. each individual can then calculate if the "hassle" is worth the returns on offer.
 
Not to labour the point (Clubman makes a very good point that this has been dealt with before) but I’d recommend the Anglo account in addition to the FA account as it offers you additional flexibility as you can vary the amount deposited each month…might be useful if you could find yourself running out of reserves. For example, you could reduce your payments form the full amount (€1,000 pm) to as little as €10 pm.

Also worth checking to see who has the highest/longest guaranteed rate…No point taking out an account today if rate is only competitive for a shorter period compared to other accounts
 
You should probably make sure to have an emergency reserve of ,say, 3 months net salary that you can access immediately, either in your current a/c or a demand deposit a/c.
Check if your current a/c pays any interest. Halifax and PTSB pay interest up to a specified limit. Its not much interest but better than nothing.
 
The difference will be more than €100pa, especially if you drip feed it into more than one regular saver. More like €400pa before DIRT the first year and €500pa thereafter. (Compared to 14k on 5.22% and the rest on 4.33%.)

Of course this presuming the 7% rates stay the same which they won't and it may indeed not be worth the hassle.

If you are going with FA, which makes sense, possibly the easiest way to open the 5.22% eSaver account is to first open a Regular Saver in a branch, apply for online banking, and then set up the eSaver once you get that- it is then instant, otherwise it can take a while to sort out manually.

asta- what bank is your current account with? They may have a half-decent deposit offering that you can set up in seconds and lash the money into while you are thinking about it.

Redstar's advice is good but bear in mind that many of the best value accounts are demand anyway (including FA's 5.22% one.)
 
Hi all. Thanks for all the feedback
Sorry, no good at working out how to do quotes etc. so……..

OLDTIMER “if it goes over 15k by as little as 1 cent the entire amount falls back to a 4.33% rate.”
Thanks for the reminder, hope I would have copped on to that myself – given time. Doh !!

CLUBMAN “Personally I would prefer not to encourage inertia …..”

I can’t agree more, my resolution this year is, (after years of having money in a BOI deposit a/c – recommended to me by them, which was earning about 2 cents a year in interest) is that if they are giving it away – then I’ll be there with my hand out. No loyalty or inertia whatsoever!

BLORG – the current a/c is with BOI – but honestly I just want rid of them – I can’t even begin to tell you the amount of times they have made mistakes or ripped me off with charges.
A while ago I ran down the a/c without realising and they OK'd a Lazer payment on a 4 euro sandwich at O'Briens but charged me 5euro for the transaction, they had done that 11 times that week before I realised that I was overdrawn.
I think that now we seem to have a bit of competition in the marketplace - we should take full advantage.
cheers again to all replies
a
 
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