What should i do with my money to help max interest?

[garythegreat]

Ok people, i need some help as to where to get the most intrest from my money. ive read over the threads and ama t a loss as to what would be best for me.

I currently have 15k savings, all in Rabodirect earning 4.7%.
Ive sent away to open a first active esavings account to earn the 5.22% - i will lodge 14500 in there and keep 500 in rabo.

I have a AIB current accout into which my wages come into each month. Soemtime during the month i usually transfer around 400euro into the rabodirect to save. I usually spend the rest. Whats the best way to earn intrest on this account while my wages are in it? As my AIB current account earns nothing in intrest.

Is there a way i can make even more intrest or am i doing the best there is with my money?

 

[ClubMan]

Re: What should i do with my money to help max intrest?

See the Financial Best Buys forum lists of best demand/term lump sum and regular saver accounts on offer. And the many threads about using these to maximise overall deposit interest. You will probably need to open multiple accounts and maybe both lump sum and regular saver accounts in order to do this.

Presumably you don't have any debts that you would be better off reducing/clearing first? For medium to long term savings you should probably consider other things such as low charges unit linked funds since once inflation is factored in even many of the best deposit rates are only just keeping pace with inflation so your capital is static or growing marginally at best and falling in value at worst.

 

[Gautama]

Re: What should i do with my money to help max intrest?

I currently have 15k savings, all in Rabodirect earning 4.7%.

Are you sure this isn't 4.3%?

Ive sent away to open a first active esavings account to earn the 5.22% - i will lodge 14500 in there and keep 500 in rabo.

Good idea.

...my AIB current account earns nothing in intrest.

Halifax are giving 10% on current accounts on the first €2k.

 

[garythegreat]

Re: What should i do with my money to help max intrest?

After a bit of thought it seems a lot of effort opening another account in Halifax to avail of their 10% intrest, when realsitically most of it will be put into rabo to save and earn 4.7%. Plus i'll have to give my employer my new details etc

Does anyone know what intrest I get on my standard current account with AIB?

 

[ClubMan]

As mentioned already it's 4.3% and not 4.7% with Rabo. And it is no real hassle to open a Halifax current account or almost any other account going.

Your original query was about how to maximise interest returns on your money. To do this you must accept some level or inconvenience in terms of opening multiple accounts and chasing the best rates as things change. If you don't want to do this then you presumably don't want to maximise your interest returns after all.

 

[garythegreat]

ye your right Clubman, i was actually thinking that after reading it!

Might go up tomorrow (saturday openings is great), but I got thinking, if i go to halifax, ill have to get a new debit card and then ill have to pay the 40euro debit card levy, making the change not worthwhile?

And if I change to Halifax, i presume i can keep the AIB account open? But do the switch thing?

 

[ClubMan]

Might go up tomorrow (saturday openings is great)

You don't have to go anywhere. You can do it all online/by post.

if i go to halifax, ill have to get a new debit card and then ill have to pay the 40euro debit card levy, making the change not worthwhile?

Stamp duty on credit cards was €40 last year. On ATM cards it was €10. On debit/Laser cards it was €10. €20 if you had both ATM and Laser/debit. Since Budget 2008 the SD is €30 for credit cards and €5 each for ATM and debit. CC SD is charged once the card is issued. ATM/debit card SD is only charged if/when you use the card. In short - for the Halifax account you will get a new card (the offer a 2 in 1 ATM/debit or a 3 in 1 but I can't recall what the third facility is!) but if you don't use it then you should not be charged SD. At least that's what the Revenue website says. Their credit card is a separate product and not linked to the current account. I think that they're still offering a "free" €100 on first purchase with the CC (i.e. €70 if you consider it net of the annual SD charge of €30).

And if I change to Halifax, i presume i can keep the AIB account open?

Yes.

But do the switch thing?

Your call.

By the way - to benefit from the 10% on up to €2K with Halifax you must lodge at least €1.5K p.m. to the account.

 

[Gautama]

And if I change to Halifax, i presume i can keep the AIB account open? But do the switch thing?

Three years ago I switced current accounts from Bank of Ireland to PTSB.
Had I used the new "switch" facility the whole procedure would have been automated, ATM cards, Direct Debits, etc. However, the Bank of Ireland account would have been automatically closed.

In order to keep the Bank of Ireland accouunt, I had to open the PTSB account first, then switch all the bits and pieces myself.

This may also be the case if you want to switch from AIB to Halifax. You either use the automtic switch, closing the AIB account, or do it yourself and keep the AIB account open.

You'll need to talk to Halifax.
Personnally, I'm considering using the switch to go from PTSB to Halifax. However, I've only just ordered a personalised ATM card, I've had zero problems with PTSB and the additional interest will only be worth a maximum of about €150 per year. Not bad, but not huge either.