The mycash.ie quick guide to deposits

The government guarantee of all bank deposits and similar measures on the part of the UK government mean that all banks in the state can now be considered safe for depositors. So, now that there are no banks out there where you wouldn’t feel safe depositing your cash, what else do you need to look out for when making your choice?

Obviously, all other things being equal, you’ll want to go for the best rate, but other factors also come into play. The first is access: for long are you prepared to commit your funds? How much notice are you willing to give in the event you wish to withdraw your cash? Typically, the longer you are prepared to commit your funds, the better the interest rate. The same applies the longer the notice you are prepared to give the bank.

Bank deposits typically come in three types. Demand deposits allow you to withdraw your money straight away. Notice deposits require you to give the bank notice when you want to withdraw your cash. Fixed term deposits are intended to be left for a specified term, which could be months or years.

So, once you’ve decided on your term it’s all down to the all-important interest rate. Mycash.ie has a simple product search and comparison engine for lump-sum deposits.

1. Enter the Product Type (select ‘All’ if you’re not sure for how long you wish to commit your money).
2. Enter the amount which you wish to put on deposit (the amount is important as some products will have minimum amounts and the results will only display those products for which you qualify).
3. Click Submit and you will be provided with a list of all the products in the market.

The results of your search will show you live interest rates available ranked from the highest downwards. The “Type” column specifies the amount of notice you must give (Demand means you can withdraw your money right away). “Gross” is the headline interest rate. The figure by which results is ranked is “CAR” or the compound annual rate. The CAR figure allows you to make a comparison of different returns for different periods or interest rates. In simple terms, CAR is what the interest rate would be if interest was paid or credited each year. Clicking Enquire opposite the product in which you are interested will bring up a short form. When you fill this form and submit it, a mycash.ie adviser will be happy to respond to your queries.

Last, if you want to find out buy how much your savings will grow over time, go to the mycash.ie Compounding simulator.