Regular Savers Account - any advice?

Hi All,
I am looking to start a regular savers account to put in about €300 - €500 per month. Having looked at the best buys for the regular savers accounts it seems that until Jan 08 the best option is AIB (max €300 per month). I am planning to contribute to the account for between 3 - 5 years, without making any withdrawels. I am going to chat with AIB tomorrow, but I would like to know what other people think of the AIB option, especially if you have opened an account with them, and also if there is a better option available at the moment for a 3 - 5 year term?
I read Digger's post about Halifax at 7%http://www.askaboutmoney.com/showthread.php?t=52402
Is this one of the items I should be looking out for? Also someone told me that they read in one of the Sunday papers yesterday, possibly the Post, that PTSB are offering 5.25% for a regular savers account but on their site it says only 5% - anyone read this article and if so is this a better option for a 3 - 5 year option than AIB?

Thanks in advance,

Rebelman.

Have you checked the ?

Deposits for 3-5 years seems like a questionable idea given that after inflation and DIRT your returns may be marginal at best.

Hi Clubman,
Yip I checked the Financial Best Buys list - would I be better off putting the €300 - €500 per month into something else? I wouldn't mind putting say €200/€300 into the AIB regular savers account and the remainder into something a bit more "risky"? I understand that over the 3 - 5 year timeframe that I would not get a great return, but I do not want to put it all into a "high risk option". What options are there to invest about €300 into something with a good return?

Many Thanks,

Rebelman

I'm not sure Regular Saver Accounts will be attractive in three or five years time. They have attractive rates now to lure SSIA savers to continue saving but look at their 'terms and conditions' - none commit themselves for the long haul. Think of them in present terms. If you feel happy with AIB open an account and when guarantee runs out in January 2008, see what they offer - there is nothing stopping you withdrawing the lot if unhappy. Yes you are correct - it is the best at the moment at 7.1%. PTSB is not at all competitive by comparison at 5.25% and you must give 21 days notice of withdrawal

Hi Oldtimer,
Thanks for the adivce. Just to say that I went to speak with AIB today and you are correct that I can do the regular savers option from now until next January, when the rate will drop back to the ECB level and withdraw the funds then without any penalties. For me at the moment I think it is the best option - between now and January I will be reading up on PIPs and other investment options (probably spend alot of time browsing AAB )

Thanks again,

Rebelman.

Anglo Irish are currently offering 7% on regular saver with no deadline as to when they will change the interest rate. Why not try that and see if they last longer ?

Hi Elcato,
The Anglo Irish option seems like a good option also but they could decide to change their rates next month to the minimum guaranteed of 4.5%? It suits me to go with AIB til next January.

Rebelman

I've just checked out B.O.I's regular savings account (interest rate currently 6.25% gauranteed for 18 months)and it looks pretty good as you can save up to €1,000 a month plus they also give 4% fixed rate on your matured S.S.I.A.lump sum for first 4 months.More details on their site might be worth a punt. Misha

Bank of Ireland regular savings account interest rate is 6.50% at the moment, certainly not the best around i.e. AIB 7.10%, Anglo 7%, Halifax 7%. A fixed rate of 4% is no big deal, Rabo, Northern Rock, Anglo Irish Bank and some others beat 4%.

Do any of these allow you to save €1,000 a month which is my intention?This would have a considerable bearing on my choice of bank.

Yep I am currently drip feeding 2,000 per month into my Anglo Regular Saver Account. 1,000 per month is max per person but as our account is in joint names (me and my "happy" man) the maximum becomes 2,000 per month.

There is a perception one is restricted by the €1000 per month limit. Happy Girl has highlighted how one could double this or even treble it i.e. some providers will allow 3 accounts, self, spouse and joint. The important issue to remember is, as mentioned many times on threads before, read terms and conditions carefully as all providers differ.

oldtimer said:

Bank of Ireland regular savings account interest rate is 6.50% at the moment, certainly not the best around i.e. AIB 7.10%, Anglo 7%, Halifax 7%. A fixed rate of 4% is no big deal, Rabo, Northern Rock, Anglo Irish Bank and some others beat 4%.

Click to expand...

You've got to think longer term though...BOI's 6.5% is for 18 months, most of the others are only until January. Also their rules aren't overly stringent. Plus, good and all as Rabo are that 5% is only a short term deal also.
I'd imagine when all of products finish at the end of the year competition will mean close to equally good deals for the consumer (we hope)