Savings - Pay of Mortgage??

[Spudo]

Hi,

I have built up savings over the past few years in both AIB Online Savings Plan (4.5% - now paying +40% bonus interest) and Anglo Irish Regular Saver (7%). I do not wish to invest in the stock market at present.

My question is - am I correct in thinking I am better keeping these saving plans instead of using the money to pay of my mortgage (Tracker at 5%)

The lower of the two - the AIB Savings Plan @ 4.5% + 40%Bonus = 6.3% less Dirt = 5.04 is marginally better that my mortgage!

 

[bogle]

%)

The lower of the two - the AIB Savings Plan @ 4.5% + 40%Bonus = 6.3% less Dirt = 5.04 is marginally better that my mortgage!

Spudo,
I also think that you might have to allow for the fact that you get some tax relief for the interest payed on the mortage which in effect offsets the Dirt paid on your savings interest, so your margin might be even better than you think.

bogle