Money Guide Ireland

For small loans – two Irish lenders are still far cheaper than the rest of the competition. On a loan of 3500 over 12 months the rate from First Active is 6.70% APR – with montly repayments of €302.02 and a total interest payment of €124.24.
Tesco Personal Finance is also 6.70% APR
The closest rate to that would end up costing you almost €70 euro more over the year – and that is from Halifax APR 10.50% – monthly repayment of €307.84
Other rates are:
MBNA 11.90% ; Bank of Ireland 12.20% ;Ulster Bank 12.90%

In the news today – Northern Rock has been loaned 5bn by the Bank of England. This seems to have induced some panic amongst savers – who are rushing to withdraw money. Some commentators are saying that this loan is nothing to worry about – and is a sign that the Bank of England must feel that Northern Rock is a sound investment. Panic withdrawls might cause more problems – so what can you do and are you protected? Northern Rock in Ireland is covered by The UK Financial Services Compensation Scheme . This is good – but not as good as you might hope.
If Northern Rock does go bust – all savers will get the first £2000 pounds back (approx 3000 euro). If they have more than £2000 – then they will only get 90% of the next £33000 pounds (approx €48000 euro). That means for every 1000 euro you have above 3000 euro – you will get back just 900 euro.
For example – someone with 20000 euro would get just 18300 euro back – a loss of 1700 euro.
Anyone with over 51000 euro will get approx 46250 euro back – and no more!

Having said all that – panic withdrawls would not be a good thing. Apparently the Northern Rock website is not coping and the phone lines are not much better.
I might be trying myself later though!
If you are looking for a new place to put your money – check out the best rates here