# Salary into online high interest Deposit account



## Mr Magoo (17 Sep 2007)

About a year ago I decided to have my salary paid directly into a high interest online deposit account. I chose RaboBank (5% interest) and as it’s on online only bank I still need a 'normal' current account, in my case it's with NIB as my mortgage is with them. Also I have a BOI special bonus saver a/c with (6.75%) and credit card.

So I tried to use an online deposit account as my main working account instead of a current account as far as possible. So here's how I managed:

*Getting paid*
Supplied my employer with the Rabo account details, it didn’t matter that it's deposit account or an online bank. I used to get paid monthly but has the option of getting a mid month advance, so I opted for that (more interest earned!)


*Cash from ATM machine* (and writing a cheques)
Transfer money from Rabo to my NIB C/A with ATM card. This normally takes 1 or 2 business days, so i need to plan ahead a little. However I've a general idea how much cash I spend each week so I've set up a standing order online in Rabo to pay a certain amount at regular intervals into my NIB C/A. 

*Paying Credit cards*
This can be done online from Rabo - you just need to enter the holding account of your credit card, it's usually found somewhere on your credit card statement, along with your credit card number as a reference. Takes approx 2 business days before it shows up in your credit card account.

*Paying bills*
I have all 'unavoidable' expenses such as ESB, telecom, health insurance, car insurance, etc as direct debit on my credit card, which I pay directly from Rabo. The free credit with the credit card means more money can stay in the deposit a/c earning interest. Of course the credit card is paid off in full each month!

*Lodging Money.*
To lodge a cheque – I can post it to Rabo or lodge with NIB and transfer fron NIB to Rabo online. I’ve also used Rabo's "money mover" to draw the money out of a BOI c/a.

*Paying Mortgage*
The mortgage is drawn down from my NIB c/a so I set up a monthlyrepeating direct debit in Rabo to pay the amount monthly into the NIB c/a. If the mortgage interest rate changes then all I need to do is to change the direct debit amount online in Rabo. Same for the BOI special bonus saver a/c. If you want to cannibalize you mortgate then you can set up a direct debit from Rabo to pay an amount directy in the NIB mortgage a/c (no need to go via the c/a).


*Saving up for something*
You can create a new Rabo deposit account yourself online specifically for whatever it is you are saving for. Set up a standing order to transfer a fixed amount you decide from the account you’re paid into. Change the amount anytime later if needed. The deposit account you created then builds up slowly and of course attracts the same 5% interest.

*Summary*
So it’s worked out well and I earn interest on any salary amount until I spend it. The amount you’ll save will of course depend on the average amount of money you can manage to keep in the deposit a/c over the month. Even if the amount of interest earned is small, you’re earning it every year from now on!


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## leex (17 Sep 2007)

Good post. 

After spotting the "open new account" facility now - very handy.


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## Mr Magoo (17 Sep 2007)

leex said:


> After spotting the "open new account" facility now - very handy.


Yes and no need to produce ID and utility bills etc and it's instant.


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## Guest111 (17 Sep 2007)

Mr Magoo said:


> Yes and no need to produce ID and utility bills etc and it's instant.


 
You have to produce ID and utility bills to open any account in this jurisdiction including a Rabo account.
Apologies for my cynicism but many of the "bricks and mortar" banks (AIB, PTSB etc) are paying interest rates greater than 5% on regular salary type amounts (€1,500 - €2,000, 6.25% - 10%)
Plus, for regular savings amounts rather than lump sums most of the banks offer rates in and around 7%. Have a look at the Best Buys section


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## Mr Magoo (17 Sep 2007)

Andy Doof said:


> You have to produce ID and utility bills to open any account in this jurisdiction including a Rabo account.


Only to open your first a/c with rabo, subsequent accounts you can open on line yourself, I've done this as described earlier.




Andy Doof said:


> Apologies for my cynicism but many of the "bricks and mortar" banks (AIB, PTSB etc) are paying interest rates greater than 5% on regular salary type amounts (€1,500 - €2,000, 6.25% - 10%)
> Plus, for regular savings amounts rather than lump sums most of the banks offer rates in and around 7%. Have a look at the Best Buys section


So do you think you could instruct your employer to pay you salary into one of the accounts you mentioned? And subsequently pay your bills from them - I coudn't find one maybe you could name a specific product so we can see if it would work.


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## Welfarite (17 Sep 2007)

Quote:- "*Paying Credit cards
*This can be done online from Rabo - you just need to enter the holding account of your credit card, it's usually found somewhere on your credit card statement, along with your credit card number as a reference. Takes approx 2 business days before it shows up in your credit card account."

Do you need to arrange this with your CC bank first?


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## Guest111 (17 Sep 2007)

AIB, PTSB and Halifax pay interest of between 6.25% and 10% on current account balances of up to €2000 provided you are "lodging" €1500 or more per month. In other words lodging your salary. You then save regularly using AIB/BOI/Anglo's regular saving products which involve the amount you choose being taken out of your account every month and "saved". The rates are usually around 7%. Before I'm jumped on by anyone my figures are illustrative...the exact figures are in the "Best Buys" section.
There are ways to maximise interest earned but they generally involve jumping through rather a lot of hoops.
My own opinion is that by having €10,000 with Rabo, the balance in a First Active E-account, having a High Interest Current Account, paying into a regular savings account, having a credit card which makes you a little bit of money, getting the cheapest mortgage (NIB) and maximising pension contributions you're not going far wrong or going to too much hassle.


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## Mr Magoo (17 Sep 2007)

Welfarite said:


> Quote:- "*Paying Credit cards*
> This can be done online from Rabo - you just need to enter the holding account of your credit card, it's usually found somewhere on your credit card statement, along with your credit card number as a reference. Takes approx 2 business days before it shows up in your credit card account."
> 
> Do you need to arrange this with your CC bank first?


No, just give the CC company a buzz and ask them what the clearing account is to be sure you have the correct sort code and a/c number of the holding account. Create a new payee in rabo with the sort code and a/c number. Then transfer as small test amount from rabo to make sure it all works. You have to specify your credit card number in the reference field each time you make a payment. You can probably do this from most banks online, not just rabo.


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## Welfarite (17 Sep 2007)

Cheers for that info., Mr M.


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## Mr Magoo (18 Sep 2007)

Andy Doof said:


> AIB, PTSB and Halifax pay interest of between 6.25% and 10% on current account balances of up to €2000 provided you are "lodging" €1500 or more per month.


Yes these high interest current accounts are interesting, have you (or anyone else tried them) - any 'gotchas'?


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## Guest111 (18 Sep 2007)

Mr Magoo said:


> Yes these high interest current accounts are interesting, have you (or anyone else tried them) - any 'gotchas'?


 
I have an AIB one...it's grand. I'm paid into the a/c and I leave €1500 in it permanently to avail of the interest rate. The rate was 11% for an introductory period (3 months I think)
You should also try and get a credit card which pays you a percentage of your purchases back...AIB Platinum for example. I think AMEX Blue does too?


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## Welfarite (20 Sep 2007)

Mr Magoo said:


> No, just give the CC company a buzz and ask them what the clearing account is to be sure you have the correct sort code and a/c number of the holding account. Create a new payee in rabo with the sort code and a/c number. Then transfer as small test amount from rabo to make sure it all works. You have to specify your credit card number in the reference field each time you make a payment. You can probably do this from most banks online, not just rabo.


 
Just to let people know, its best to ring the credit card company for the holding account number. I did and was given a different account numbe than that on the statement. I paid in a tenner to see if it works out ok so I'll post if not when I get next statement!


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## Mr Magoo (20 Sep 2007)

Welfarite said:


> Just to let people know, its best to ring the credit card company for the holding account number. I did and was given a different account numbe than that on the statement. I paid in a tenner to see if it works out ok so I'll post if not when I get next statement!


Yes, mine is different too. even the sort codes e.g. BOI Visa/Master card is 901538 in my payee record in BOI365 and on the credit card giro part of the statement it's 908895. 
Then the IBAN a/c number matches the Giro a/c number but with a different sort code!
I'm guessing they would all work but ring to confirm as we mentioned above.


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## tony37bar (16 Jun 2012)

*wage to deposit account*

Hi can i have my wages paid into my deposit account with permanent tsb?


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