Putting money on deposit is not as straightforward as it once was. With the imminent closure of Bank of Scotland Ireland’s retail arm Halifax, along with the introduction of the new bank guarantee scheme, effective since 9th December 2009, your choice of deposit account and institution can significantly impact the return and the security of your money.

For example, the difference between two different deposit accounts on 18th February would mean a loss of €2,850 on €100k over 12 months (before tax).

Banks buy money from depositors and lend on to borrowers. The less they pay for the deposits, the greater their profit. Through our active monitoring of the deposit market, we can advise you on the best rates for your requirements at any given time.

When selecting a deposit account and institution, you need to consider:

- Interest rate: currently ranging from 0.01% AER- 3.6% AER
- Term and restrictions: can you access your funds before maturity date?
- Amount covered by government guarantee
- Variable expiry dates of government guarantee from September 2010
- Date each institution signed up to Eligible Guarantee Scheme (ELG)

We monitor the deposit options available from institutions operating in Ireland on a daily basis, so we can advise on the optimum deposit account to suit your specific requirements. There is no cost to you associated with this service; the interest you receive is the same – and sometimes better - when placing your deposit via Acumen & Trust, as we receive commission from the institution. 

We also monitor limited offers from financial institutions of special rates for specific terms, for example Investec Ireland is currently offering a 12-month online deposit account at 3.6% AER. As this is covered by the UK government guarantee scheme, which has a maximum limit of STG£50,000, we are advising clients to place a maximum of the Euro equivalent of STG£50,000 in any single account.

Please contact our deposit advisor Emer Brogan for more information.

Irish Times article: Confusion reigns over what happens when the bank guarantee expires

NOTE: Examples provided for information purposes and are not to be taken as financial advice. AER means annual equivalent rate. Interest is subject to DIRT. Terms and conditions apply to deposit accounts.