First Active 5.22% on savings question?

[landlord]

Just wandering If I deposit 15,000 into a First Active account then due interest earned the balance rises over 15,001 will It revert from a 5.22% rate to a 4.33%.
If that is the case maybe its better depositing 14,500 for example?
thanks....

 

[damomac]

Anything over €15k will be at the lower rate.

To avail of the higher rate you could deposit €14,500 as suggested or else you can manually move your interest earned into another account to keep the lump sum under €15,000.

Hope this helps.

 

[DrMoriarty]

Correct.

As I understand it, the interest is credited monthly, so to avoid going over the €15K limit you'd need to check the balance after a few months — monthly interest on €14,500 should be about €50.46 net of DIRT(?) — and make an appropriate withdrawal.

[Edit: post crossed with damomac's]

 

[landlord]

Anything over €15k will be at the lower rate.

To avail of the higher rate you could deposit €14,500 as suggested or else you can manually move your interest earned into another account to keep the lump sum under €15,000.

Hope this helps.

so just to check, if you deposited 15,000 and you earned 5 Euro interest, would the 5 Euro be at the lower rate or the entire 15,005 be at the lower rate. If its the latter then it would be an easy trap to fall into for those who just deposited 15,000 and never checked their balance.

 

[bacchus]

the entire 15,005 at lower rate

 

[DrMoriarty]

Yep, the entire balance would earn interest at 4.33% AER if it went over €15,001. Check their [broken link removed].

the entire 15,005 at low rate

In fairness, 4.33% is almost as good as anyone else is offering for instant access, since Rabo's recent announcement.

 

[bacchus]

sorry, i meant "....at lower rate". Post corrected.

 

[Devestor]

I had a look on the site. The initial intro said you could transfer money in and out of other first active accounts. And later it said you can transfer money in from ANY account. Does this imply that money can only be transferred out to another first active account? So you would have to do it in stages.

I liked Rabo cause each month I would transfer all of my salary into it then drip it back into my AIB current account as I needed it keeping the money level there lowish. Will this be easy with first active? I don't particularly want or need more current accounts.
Can esaver move money directly to an outside account?

Thanks

D

 

[camlin90]

Regarding transfers and the E Saver - I have done these to/from Ulster Bank and it has always worked perfectly. Don't know about other banks.
However, when setting up payees for transfers out of First Active, I had some difficulty finding a customer service person who both understood what I wanted and was able to do it.

Tonight I have processed my first EFT from Rabodirect to First Active hopefully that will work just as well.