Increase in fixed term dsposit rates

D

dublinhead

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Why the sudden increase in fixed rate deposits I see on the best buy lists? Some very good rates like ebs fixed 5 months 3.64%.
 
Because Ireland is in crisis and attracting capitals to the 6 irish damaged institutions is taking more and more effort at the moment... :(
 
Its down to supply and demand.

At this point there is a shortage of funds so rates will rise.

Banks/ EBS etc are in competition with An Post saving bonds..10% for 3 years. The AER is 3.23% tax free.

Excellent, provided we don't sink !
 
I have been following the Irish deposit market for 5 years and I have ever seen anything like the amount of term deposit rate increases, like what has happened in the last week.

The simple reason is the banks have lost a lot of deposits and need greater liquidity.

Alan Dukes today said Anglo have lost a further 13 billion in deposits.
 
Money is leaking fromn the banking system and yet the powers that be are still playing politics ...
 
Its great to see the fixed rate deposits keep rising and good work Ciaran keeping the best buy rates updated. Lets hope dirt tax does not increase to much in the budget and erode away any interest received, I can see it going to 30%.
 
I wouldn't put my money in any of these accounts. It's like having Government Bonds, the yield is nearly 9% but everyone is rushing to sell!
 
Expat64 said:
I wouldn't put my money in any of these accounts. It's like having Government Bonds, the yield is nearly 9% but everyone is rushing to sell!
Click to expand...

Some of the increases have come from banks like Investec who are backed by an UK guarantee rather than the Irish state guarantee.

These kind of higher rates can be taken advantage of.
 
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