Saving For A Mortgage: Current Interest Rates
Obviously, both mortgages and jobs are difficult to come by these days, but if you really want a house or apartment of your own in the future, no matter how long it takes to get it, now is the time to think ahead and to put yourself in the best possible position to get a mortgage when the economy improves.
Mortgage lenders will want to make sure that you have a good record of savings. Regular contributions, for as long a period as possible into a savings or deposit account, will be looked on favourably by banks and mortgage lenders when they assess your application. So plan ahead, open an account now and get a regular savings plan going so that when mortgages become more widely available, you will have a good record to show the bank. Even if you can't afford to save much every month, at least it will demonstrate to the bank a regular history of payments.
Although there is a strong possibility of interest rates on loans and mortgages rising shortly, unfortunately for savers it is unlikely that deposit and saving account interest rates will be increased to the same extent.
Bank of Ireland currently offers an easy saver account which provides an interest rate of 3.25 percent on balances up to €5,000 and 1 percent on balances above this. The Bank Of Ireland dual saver account pays 4 percent on balances up to €5,000 and in addition pays 1 percent on a lump sum savings account. The easy saver account and the dual saver account from Bank of Ireland are regular saver accounts.
Both Allied Irish Banks and the Ulster Bank provide an interest rate of 3.5 percent on regular monthly savings.
Permanent TSB offer a 21 day notice account which pays 4 percent on deposits below €50,000. Should savings exceed this amount, the interest rate drops to 1.5 percent on the entire balance.
Irish Nationwide has promised to pay 1 percent above the European Central Bank interest rate (although the ECB rate is currently very low at just 1 percent and likely to remain there for the immediate short term).
National Irish Bank offers an online savings account which pays an interest rate of 3 percent on regular deposits or on lump sums, provide that there are no withdrawals in a calendar month. If funds are withdrawn from this account, the rate decreases to 1 percent.
Banks are strongly motivated to get in as much money as possible, especially in the current recession, so savers should continually monitor the interest rates on offer from banks and mortgage institutions. The interest rates listed here may be subject to change at very short notice.
This article is only intended as a basic general summary and you should always seek professional advice where necessary.
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