Monday, September 12, 2011
It is likely the case that deposit rates will start to go into a downward move as the ECB drops its odds of raising rates and as banks seek to find margin (which they can do via lower deposits). This contrasts with the massive funding issues the banks are having (and the country for that matter!), but it is still important to see that a guaranteed 4% plus return is possible and on that basis locking away some cash is a good idea. The excerpt is below:
‘‘There is an argument to go out one year at 4 per cent,” said Karl Deeter of advisors.ie. ‘‘Locking it away is the downside. Rates are coming down, but banks might be so deposit-hungry that they keep savings rates up.”
Filed in Accountancy, Advisors.ie In the Press, Banking, Deposit accounts, Financial Advice, Investment
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Also tagged bank deposits, deposit broker, deposit rates, deposit statistics, irish bank deposit rates, which deposit rate
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Deposit accounts are one of the safest places you can put your money, the issue with them traditionally has been that they tend to under-perform versus alternatives with some risk (like stocks and bonds). But that doesn’t mean you should only ever opt for risk, a steadily increasing plain vanilla deposit account can make a big difference over time, indeed, it lead Albert Einstein to once say that ‘the most powerful force in the universe is compound interest’.
