Thursday 21 September 2017

Investec stirs up competition with 6.85pc interest rate

savings

Charlie Weston, Personal Finance Editor

SOUTH African-owned bank Investec has upped the ante in the deposit price war by launching an 18-month account paying 6.85pc.

The bank, which is regulated from Britain, has left Ulster Bank, Permanent TSB and KBC Bank behind it after it launched the new account.

The annualised rate on the Investec account works out at 4.52. There is a €20,000 minimum and savers can get access to 20pc of their funds on a once-off basis. It is an internet-only account with a €2m maximum.

Ulster Bank offers a gross 6.5pc for money locked away for 18 months. This works out at 4.29pc in annual equivalent rate terms.

Both Permanent TSB and KBC Bank offer a gross 6pc over 18 months. Higher rates are on offer for those prepared to lock away their money for long periods.

The competition to hoover up deposits has also seen banks offer high interest rates for money saved.

EBS, which is now part of AIB, is paying 5pc on its regular saver account. Both Ulster Bank and Permanent TSB are paying 4pc. All these accounts have a €1,000 a month maximum.

Savers could be hit with higher tax in the Budget. The deposit interest retention tax (DIRT) is currently 27pc but the expectation is that Finance Minister Michael Noonan will hike it on December 6.

Irish Independent

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