Advice in relation to the rates on offer and the attaching guarantees are of paramount importance in this era of bank nationalisations and banks swiftly exiting the market.

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

- Interest rate: Ranging from 0.01% AER- 3.6% AER (As @ April 2010)
- 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)

For example, as at 28th October 2010:

€100,000 earning 0.125% AER on 12 month deposit = return of €125 (AIB 12 month)
€100,000 earning 3.46% AER on 12 month deposit =return of €3,460 (Interest first account PTSB)

The return on deposit is as wide ranging as returns of €125 to €3,460 for the same period. We survey the market daily from institutions operating in Ireland to ensure you have access to the most competitive rates either by advising you to contact the bank directly or handling the administrative dealings through our office. 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.

In addition to recommending the most competitive rates we also take into account the security of deposit and the financial rating of the institutions recommended. The security of deposit will outweigh rates on offer.

We also monitor limited offers from financial institutions of special rates for specific terms, Permanent TSB is currently offering a 12-month “Interest First” account which pays the interest that would accrue over a 12 month term within 30 days of the account being opened. You effectively earn interest on interest. As Permanent TSB is a member of the ELG scheme this account would be covered under the scheme for the duration of the 12 months (for funds in excess of €100K individually).

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.