AnMadraMór
Registered User
- Messages
- 1
I know this has been discussed before, but I am getting a bit confused.
Basically my mortgage is: €200k left to pay over 14 years. PTSB Tracker (ECB+0.8%. = 1.3%).
I will be in my 60s by the time I pay off my mortgage, so I have been trying to accumulate savings to reduce the term. However commentators seem to be constantly saying don’t give up your tracker or pay any of it off as it’s the cheapest money you’ll ever get. Currently I have a total of €40k in instant access savings accounts made up of:
€14k PTSB reduced to 1% today (originally 3%)
€8k Danske Bank 1% (originally 3%)
€18k Nationwide UK 2% (originally 3%)
I can understand that when the rate was at 3%, it made some sense to keep deposits in the bank. At 1% I dont think it makes any sense - the banks seem to be constantly reducing rates on their existing accounts and then introducing new accounts with slightly higher interest rates. The way I see it, I will have to constantly keep closing old accounts and opening new ones to keep ahead, but even at that, the best rate currently payable is 2.3% with KBC. Taking DIRT into account this is reduced to 1.53%. This gives me a margin of 0.23% which i think works out at about €92pa - a fairly poor return? Also, its very likely this rate will also be reduced in time, so I doubt I would actually make anything. Even the fixed term deposits seem to offer fairly poor rates now - should I just pay 40k off the mortgage and be done with it? - Any ideas?
Thanks
Basically my mortgage is: €200k left to pay over 14 years. PTSB Tracker (ECB+0.8%. = 1.3%).
I will be in my 60s by the time I pay off my mortgage, so I have been trying to accumulate savings to reduce the term. However commentators seem to be constantly saying don’t give up your tracker or pay any of it off as it’s the cheapest money you’ll ever get. Currently I have a total of €40k in instant access savings accounts made up of:
€14k PTSB reduced to 1% today (originally 3%)
€8k Danske Bank 1% (originally 3%)
€18k Nationwide UK 2% (originally 3%)
I can understand that when the rate was at 3%, it made some sense to keep deposits in the bank. At 1% I dont think it makes any sense - the banks seem to be constantly reducing rates on their existing accounts and then introducing new accounts with slightly higher interest rates. The way I see it, I will have to constantly keep closing old accounts and opening new ones to keep ahead, but even at that, the best rate currently payable is 2.3% with KBC. Taking DIRT into account this is reduced to 1.53%. This gives me a margin of 0.23% which i think works out at about €92pa - a fairly poor return? Also, its very likely this rate will also be reduced in time, so I doubt I would actually make anything. Even the fixed term deposits seem to offer fairly poor rates now - should I just pay 40k off the mortgage and be done with it? - Any ideas?
Thanks
