Irish Nationwide - (potential) new shareholder

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pator

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Following on from a passing comment here
http://www.askaboutmoney.com/showthread.php?t=83966

I am hoping to open an Irish Nationwide share account (for the possibility of share payout) am I correct in thinking that Advantage 30 at 4.8% is their best available rate of interest?

I would be moving the money from northern rock where it is currently earning 5%, I am reckoning that the 0.2% drop is worth it for the chance that I mightn't be too late.
Does my plan make any sense?
 
pator said:
I would be moving the money from northern rock where it is currently earning 5%, I am reckoning that the 0.2% drop is worth it for the chance that I mightn't be too late.
Does my plan make any sense?
Click to expand...
You are banking on any DM not happening for two years at least. You should be able to estimate the potential (deposit interest) opportunity costs and potential (DM) gains of moving from NR to INBS. In fact you might want to compare the opportunity costs of not drip feeding the money into a c. 7%/8% regular saver account over a similar period. Or otherwise saving/investing elsewhere.
 
Thanks Clubman for the always excellent food for thought.

That money is the "rainy day" fund so only looking at deposit options. Definitely a risk that the DM will happen before two years are up but with the current financial situation, (I have little knowledge on the DM obviously but just looking at all options)
Upto now didn't have the resources for the minimum amount.

Have an anglo 7% and today rang about the 8% (unlike some people here didn't give me new a/c number straight away said would send out the forms but easy cause didn't need id again)

Thinking if am going to leave the money on deposit may as well leave it with Irish Nationwide where there is a chance of a payout for a slighly smaller return on interest rate.
 
I can't help thinking that the credit crunch will mean RIP for the chances for a decent INBS demutualisation payout. Your money might be better off where it is.
 
ubiquitous said:
I can't help thinking that the credit crunch will mean RIP for the chances for a decent INBS demutualisation payout. Your money might be better off where it is.
Click to expand...

Would u kind expanding ubiquitous?
Is it that u think the demut will go ahead but with a really low payout? Or that it won't go ahead at all. Is this just because of the credit crunch?
 
I don't really want to get into the area of speculation on the valuation of individual shares but I would not be surprised if the INBS relax their membership criteria in the coming years in order to attract new capital from new shareholders.
 
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