# AIB Regular Saving 7.3% ?



## MugsGame (19 Feb 2008)

*AIB 7.3% regular saver for new accounts*

RTE summary
[broken link removed]


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## money man (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

I cant believe they are launching this new product just weeks after changing the last regular saver account back to ECB rate. Its a bloody nightmare having to go out an open new accounts etc to try and get value for your money only for the bank to discontinue/reduce rates after a short time forcing you to change accounts/banks or just them hoping that you will not bother and just leave your money there. Why dont they just extend their last offering and run this alongside it for new accounts. I have swithced most of my accounts to AIB from Bank of ireland but my patience is waring thin. Everything is in small print with them. I wish a bank would offer competitive products and keep them competitive instead of these irregular gimmicks that get loads of media coverage and fizzle out. It would be great to see what bank offered the best savings/regular savings rate over the past say 3 years. Then people could make a long term decision. saving is supposed to be a long term habbit so why do all these products only last for a few months then revert back to ECB . IF they can offer them why dont they do a tracker product say 2% above base guaranteed for 3/4/5 years?


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## pc7 (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

I already have a regular saver account since last year, so to get the above rate do I have to open another one?


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## money man (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

from what i quickly read in the press release (stand to be corrected) it would only apply to new accounts. and thats what really is annoying me. what rate will existing regular savers get. maybe a call/complaint to head office/branch or few negative posts here will get them to change their mind.....i see where they note "best buy" In their press release...maybe they are a fan of AAM!!


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## pc7 (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

yeah i'll try ring my branch tomorrow and see what they say


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## Jethro Tull (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

if I remember correctly the 'other' regular saver had to be funded from an AIB account. Anyone know if this will be the case here? I bank with PTSB, a bit of a pain to open an AIB current account to feed money from PTSB to the current account to the regular saver


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## MugsGame (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

It's an introductory offer to get new business and lead the best buy tables, without the expense of paying a high rate on accumulated balances in year two. Existing accounts have already reverted to ECB.


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## annR (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

I'm beginning to wonder whether these high interest accounts are worth it at all.  If the 7% interest rate is only for a year, you're not earning 7% on the entire amount you put in over a year.  I think it works out at 3.5% or thereabouts.  Would we not be better off leaving it in the likes of Rabo which offers favourable rates over a longer term.


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## Darando (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

I have to say, I find this an absolute disgrace. So customers who have been saving for a few years with their old AIB reg savigs account, have to head bank down to the bank to open another account. That is a complete joke and to be honest I find it bad on AIB part.


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## MugsGame (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Halifax started the trend of reducing the payout for existing account holders.

I'm also wondering if quoting AER here is misleading, since only people who open the account today can avail of the headline rate for a full year.


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## Jethro Tull (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

On their website now. 

[broken link removed]

*Please note:* You must have an existing AIB account to nominate as your payment account. If you are not an existing AIB customer, and do not have an existing AIB Current, Cashsave or a Demand Deposit account, you will need to visit your local AIB branch. You will need to bring two pieces of identification with you (a passport or full drivers licence for photographic identification and a recent utility bill or bank statement to prove your address) so that we can open a payment account as well as an *AIB Regular Saver* Account for you.

Looks like its open an AIB current account or nothing


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## MugsGame (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

You can open a Demand Deposit account (without a current account) and use that as the payment account.


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## money man (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

there are account fees applicable to the demand deposit a/c the only way you can avoid these fees is by opening a current a/c with a card and use the online banking and card several times a quarter. I agree i feel a bit of a mug for signing up to their recent offers. it was a waste of my time. but kept me in the habit of saving. i should have opened an anglo a/c when i was going to . i wont make the same mistake this time. will probably close this a/c and transfer it elsewhere after i wade through the rubbish and short term promises . its a scandal that they can offer this rate for 12 months for a product that is essentially a long term buy/option for a customer. Its just a clever introductory rate like on a mortgage (discount in first yr) but you proceed to get ripped of for the life of the product.


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## MysticX (19 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



			
				money man said:
			
		

> there are account fees applicable to the demand deposit a/c the only way you can avoid these fees is by opening a current a/c with a card and use the online banking and card several times a quarter.


I think not?

[broken link removed]



> *Benefits of an AIB Demand Deposit Account*
> 
> No transaction fees or charges on this account
> Total flexibility for your savings; no minimum, no maximum; regular or once off
> ...


 
On another note this could stack well with the FA 7.15%. First 300 to AIB and the remainder to FA. Though the FA would be more easier to manage as it's an SO versus a DD.


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



annR said:


> I'm beginning to wonder whether these high interest accounts are worth it at all.  If the 7% interest rate is only for a year, you're not earning 7% on the entire amount you put in over a year.  I think it works out at 3.5% or thereabouts.  Would we not be better off leaving it in the likes of Rabo which offers favourable rates over a longer term.


They are worth it as long as the high rate applies and as long as the terms & conditions are not unnecessarily restrictive (e.g. restrictions on access such as apply on some or arcane penalties such as apply to the bonus rate on _Halifax _regular saver accounts etc.).


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## money man (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Could you argue that this is mis-selling / mis-leading given the short term nature of the higher rate linked to a long term account/product ? If it was a mortgage it would have to be clearly defined as a one year discount variable mortgage . i think that this very relevant info should not be lost in terms and conditions but should form part of the product name to clearly show people that this is just a short term introductory offer?


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



money man said:


> Could you argue that this is mis-selling / mis-leading given the short term nature of the higher rate linked to a long term account/product ? If it was a mortgage it would have to be clearly defined as a one year discount variable mortgage .


_First Active_ get away with sticking a big *"3.8% APR"* on their posters for their offset mortgage with, in smaller text above, "get your rate down to" based on some combination of lodgements to the offset account over the lifetime of the mortgage thereby reducing the effective rate charged on the mortgage. I've complained to _IFSRA _about this but can only assume that they did not consider it a problem. Of course, under existing legislation, they are not allowed to tell me what happens with or on foot of the complaint that I have made...


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## money man (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

If it was highlighted in the public domain like on the today fm show (is it conor pope who does it?) maybe it could go towards offsetting !!the damage caused by this mis-selling?


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



money man said:


> If it was highlighted in the public domain like on the today fm show (is it conor pope who does it?) maybe it could go towards offsetting !!the damage caused by this mis-selling?


Sorry - I don't understand what you mean and have no idea what was on that show.


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## MugsGame (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

The account launched yesterday and the headline rate expires a year from yesterday (or sooner, if the ECB base rate changes.). All lodgements must be by DD. It takes a few days to setup a DD.

Therefore it's not possible for anyone to avail of the advertised rate for a whole year. I think this is potentially misleading.


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## money man (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

its a programme for financial/consumer related complaints. It didnt feature on this show but it may be a suitable forum for complaint if you have heard nothing back from IFSRA.


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## NHG (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Just after visiting our AIB branch - won't have the application forms in until friday at the earliest.

Why bother launching a product that is not even available to the public at the time of the launch.  Im sure its not something that they decided to do during tea break!


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## brian1 (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

So I have the old AIB Regular Savers account that I'm only earning 4% with now. I'd get more with AIB's 7 day online account (5%) or Rabodirect, so the question is how is the best way to exit out of the AIB regular savers acc.

If I close the account today, will I get the full interest earned up until today?

Or alternatively should I reduce the direct debit to the minimum amount of €10 and wait until the next interest payment day in April and then close the account?

Thanks in advance for any help with this.

BTW Is the First Active regular savings account worth opening, or will this also end up having the same issue?


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



brian1 said:


> So I have the old AIB Regular Savers account that I'm only earning 4% with now. I'd get more with AIB's 7 day online account (5%) or Rabodirect, so the question is how is the best way to exit out of the AIB regular savers acc.
> 
> If I close the account today, will I get the full interest earned up until today?
> 
> Or alternatively should I reduce the direct debit to the minimum amount of €10 and wait until the next interest payment day in April and then close the account?


You need to check the _T&Cs_ carefully to see what the implications, if any, are of closing now or reducing the monthly contribution.


> BTW Is the First Active regular savings account worth opening, or will this also end up having the same issue?


I'd say that most of these 7% accounts will eventually drop the rate but while the 7% rates are available (and all things being equal - in particular no sneaky or unnecessarily restrictive _T&Cs_) they are worth availing of for cash deposits.


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## John Rambo (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



ClubMan said:


> while the 7% rates are available (and all things being equal - in particular no sneaky or unnecessarily restrictive _T&Cs_) they are worth availing of for cash deposits.


 
Isn't it fair to say that they're a bad idea for cash deposits? As in, if you've got €10,000 hanging around you're better off leaving it somewhere like FA, Rabo or NR at around 5% because a lump sum filtered into one of these products at 7% really only yields 3.5% over the year. Regular savings products seem to be more effective only when you're salting away a portion of your salary each month.


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## Jethro Tull (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Don't forget if you have 10k earning 5% and you drip feed a 7% regular saver you have some money earning 5% (starting off at 10k dropping to 0) and some earning 7% (1k after the first month rising to 10k). 

_It is_ a better option if maximising interest earned is your game.


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## MugsGame (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



> If I close the account today, will I get the full interest earned up until today?



Yes, but I think they only accept closure instructions in writing.


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



John Rambo said:


> Isn't it fair to say that they're a bad idea for cash deposits? As in, if you've got €10,000 hanging around you're better off leaving it somewhere like FA, Rabo or NR at around 5% because a lump sum filtered into one of these products at 7% really only yields 3.5% over the year.


No - it's not fair to say that. See here. And as _Jethro Tull _said above...


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## brian1 (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Just to complicate things a little, I also have one of those AIB Online savings accounts, where you get 4.5%, plus a 10% bonus for each year after that.

I'm currently on the second year of this, so that would be 5.4%. However the question, do you only get the 5.4% on the amount lodged at the start? If I put a €1000 in it today, wll I get 5.4% or would it be 4.5% on todays  €1000 until next year.

Just trying to figure out what is the best way to save my money.

Cheers


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## ClubMan (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

As I said in response to your earlier question - what do the terms & conditions of the account say?


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## MugsGame (20 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

The bonus interest for the Personal Savings Plan applies to the whole balance. Otherwise it would get very messy for them to calculate! So it's actually a reasonable deal.


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## Bobby1 (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Hi,

Im not sure if this was asked already, but the 7.3% AER rate AIB are quoting, on their website they say the rate is ECB+3%, so this would be 7% (variable), how do they come up with 7.30% AER, it the rate promise is only for 12 months?

Just curious

Thanks
Booby1


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## MugsGame (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

They pay interest twice a year. 3.5% each time compounds to 7.1% annually (ignoring the effect of DIRT.). They actually say it will be at least ECB+3%, so maybe they've increased it a bit to beat First Active.


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## Joe Rock (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

One can Open a "New Regular Account" at 7.3% and keep the "Old Regular Account"


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## brian1 (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



Joe Rock said:


> One can Open a "New Regular Account" at 7.3% and keep the "Old Regular Account"



There is no point in keeping the old regular savings account, it only pays 4%, you would be better off closing it and putting the money in a First Active eSavers account (5.22%), Rabodirect (4.3%) or even AIB's own 7 day online demand deposit account (5%).

I've done what ClubMan suggested about reading the T&Cs of closing the old regular savings account and the T&Cs have nothing to say about closing the account, so I assume you just close it and get all your interest until that day, the T&Cs do say that the interest is paid daily. I'll double check with AIB tomorrow.

The only thing I'm trying to work out now is where to put my regular savings. I've done some maths and it seems that putting it into the online personal savings plan would be the best bet, given that this year I'll get a rate of 5.4% on it and next year it will be 5.85%. Sure the headline rate of 7.3% looks better, but I've worked out that I will earn more with the online personal savings plan over two years (at 350 per month over 2 years you will end up with €8962 versus €8840) and even more over 3 years.

And of course I don't have to deal with the hassle of going to an AIB branch to open yet another stupid account.


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## Mr Sparkle (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

When you close the old regular saver account in writing you are credited with all the interest due up to that day. Mine was automatically lodged into my AIB current account by the branch.


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## oldtimer (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Brian1/Mugsgame - re the online personal savings account, are you sure the interest ''applies to the whole balance?''  Brian1, are you sure you are getting a rate of 5.4%?  The prospectus states '' End of Year 1, 10% on *interest* is paid.'' I thought as you do, but on another thread was told not so. Must do a search for that thread.


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## brian1 (21 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



oldtimer said:


> Brian1/Mugsgame - re the online personal savings account, are you sure the interest ''applies to the whole balance?''  Brian1, are you sure you are getting a rate of 5.4%?  The prospectus states '' End of Year 1, 10% on *interest* is paid.'' I thought as you do, but on another thread was told not so. Must do a search for that thread.



Well my understanding is that the bonus is paid on the interest earned.

So if you save €350 a month @ 4.5% you will earn €103.80 interest, which you get a bonus of another 10% which would be €10.38 given you a total of €114.18 (before DIRT).

Now the regular savers account will give you 7.3%, so if you put in €350 per month, you will earn €169.84 interest.

Obviously this is more, however where it gets interesting is in year two. Lets for argument sake you don't save anything extra in year two (you will have to, to keep the account open, but just for simplicity), the regular savers account will drop to 4% giving you a total of €4547.87, while the online personal savings account will give you €4552.

While this is only slightly more, don't forget at the end of year 3 the bonus increases to 30%, year 4 40%, year 5 50%, etc. constantly widening the gap between what you can earn with the regular savers account.


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## Godfather (22 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Now we understand the game! As soon as too much money from old reg. saver accounts earn too much interest on a daily basis they reduce the rate and the banks announce a new account so the same similar rate will apply for lower amounts!

V. smart!  My goodness I'm going back to the old lovely mentality of the lump sums only as soon as my anglo-irish + FA + EBS (1st april?) + Bank of Ireland (april as well?) will reduce their rates!


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## ClubMan (22 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

It's not that surprising that the 7% regular saver rates may be only limited offers. Once the terms & conditions are not too restrictive you just chase the next best rate when necessary.


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## brian1 (22 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*



ClubMan said:


> It's not that surprising that the 7% regular saver rates may be only limited offers. Once the terms & conditions are not too restrictive you just chase the next best rate when necessary.



 I wouldn't mind so much if you could open and close these accounts online like you can with some of AIB's other accounts. But given that you need to call into a branch every time you open or close one of these accounts, the relatively small amount of extra interest you earn compared to the 5+% lump sum accounts around isn't worth it IMO.  Remember your time is money also.


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## ClubMan (22 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Not *every *such account on offer requires you to attend a branch.


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## The_Hustler (22 Feb 2008)

*Re: AIB 7.3% regular saver for new accounts*

Just opened one today. But since you have to pick a date between the 1st and the 25th and also give 5 working days notice, my first payment will have to wait till March

Once again, thanks to this site. First letting me know about the online week notice demand account and now this


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## Joe Rock (27 Feb 2008)

I opened an AIB Regular Saving Account, last week, which gives 7.3%
When I look at my account on the WebSite it states it gives 7.175%
Has anybody, who opened one of these accounts, seen their Statement?


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## MugsGame (27 Feb 2008)

Interest is paid in April and October so it compounds to 7.3% 

7.175% / 2 = 3.5875% every 6 months

Opening balance €1
after 6 months   €1.035875
after 12 months €1.07303702
giving total annual interest of 7.303702c, which is 7.30% of €1.

Of course in reality 20% DIRT is deducted from each interest payment, but they don't have to include this in their headline rate.


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