And in the Irish Times today, Colin Gleeson refers to the rate in an equally less obvious way to less informed customers. Alhough the latter part of the sentence clarifies "over that period", the beginning suggests otherwise. They (NTMA) should stick to AER and stop this total % nonsense.
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AIB’s two year fixed term does what it says on the tin. Money locked up for two years, no provision for early withdrawal.
Agreed, but it can get complicated for the average punter to work out the best on an after tax basis, but there are some long dated near-zero coupon bonds out there which are better than 10 year state savings.
Agree. We moved a lot of our clients into state savings in recent years as the return on bonds was negligible.
Once you know what you're doing!
This isn’t quite as clear cut.
Exactly. But as you know, my default position is that most people shouldn’t attempt DIY investing in Ireland. It’s unnecessarily complicated
And you have a vested interest in holding this line?
Thanks. As for "no provision for early withdrawal" for AIB, realistically they must must have provisions to handle situations where the client needs to get back his money early, e.g. to pay for unforeseen family emergency / medical treatment and similar.
Yes, they and other banks do indeed have provision for early termination in 'hardship' on a case by case basis. You get your initial money back, and that's it. There is nothing in the terms and conditions that allows for a penalty to be charged.
Lol. I could post a link to a free cure for cancer on here and I’d get a post back:
The Terms and Conditions allow for early repayment in the following circumstances: Death, Bankruptcy, Offset by AIB against other monies owed by you. That's it. There is no mention of Emergency, Hardship etc. So you would be appealing to AIB's better nature, and at their sole discretion, in looking for early repayment. You would face a high bar in the earlier days, however the chances of getting early withdrawal would improve in the final year because of the potential bonus to the bank in retaining the interest "earned to date".
I think the reinvest tick box is only for matured products. It would make life easier for customers and for state savings for the same to be available for early withdrawals, but customer service isn't one of their strong points. So long as you have an online account it avoids the paper completely and is a two step process, (1) "Cash IN"which returns the money to your bank account and (2) "Buy Now" which allows you purchase the new issue up to the limit allowed by your Debit Card. I rolled over a number of products previously and it was pretty painless.
There is nothing that I can see in the Terms and Conditions to suggest that the residue in the case of a partial withdrawal will do anything other than remain where it is, at the rate it was originally issued, under the original cert number and Issue terms.
I have NSB issue 6 and 8. I won't be touching Issue 6 as these are in their final years and the yield between now and maturity is very good. I'll be cashing and reinvesting all of my Issue 8 bonds. I have other products (Savings Certs) which I will also look at reinvesting on a case by case basis, depending on whether or not I can beat the yield between now and maturity. Note @Marc made a very valid point in post #49 - it is worth checking the anniversary dates before withdrawing existing State Savings Fixed term investments, as they interest rate generally changes on the anniversary date and this can sometimes amount to a substantial uplift. In those cases you wait until the anniversary month to withdraw and reinvest.