# Bank Of Scotland ( Ireland) - 3.75% Deposit Account



## ShaneMc (10 Jan 2006)

Hi,

Just read on RTE News that with the roll out of their new branch network they will be offering a whole range of products including a monthly savings account at 3.75%.


----------



## Deano (10 Jan 2006)

Looks like good news! Here's the link -
http://www.rte.ie/business/2006/0110/bos.html


----------



## Betsy Og (10 Jan 2006)

Thats a great deposit rate, easily the best going, though if you're on current account mortgage it still makes sense to pay into that, as 3.75% makes 3% after DIRT. CAM rate 3.29% before latest expected rise. Would need 4.11% deposit rate for after tax equivalence (all other things being equal - which they never are!!).

Cant beat competition !!


----------



## ClubMan (10 Jan 2006)

Good news although it's not available yet so _Northern Rock Demand Online_ at 3.25% gross _CAR _for amounts of €1,000 or more is still the best standard demand deposit rate on offer. Note also that _BoSI's_ account is described as "a monthly savings account" so it may have strings attached that don't apply to the likes of _NR's _and _Rabo's _demand deposit accounts. We'll have to wait and see. I can't find the separate press release about this account which is mentioned [broken link removed].


----------



## bogwarrior (10 Jan 2006)

The fact that it mentions "a monthly savings account" would suggest there is a maximum
you can deposit into it at a time - I think AIB have launced a similar product recently
(though with a lower interest rate).  
The product is obviously launched to attract the SSIA savers who've got
used to putting a set sum away every month.  Good news though, a little
competition is always nice.......

Incidentally, I used to live in Perth, Western Australia and after Bank of Scotland completely bought
BankWest (the local large bank) in 2003 it launched an aggressive marketing campaign
to attract new customers including an at-call online savings account with
a deposit rate of 6% (which was 0.5% higher than its nearest competitor) .
There were no strings attached ie monthly deposits etc


----------



## MonsieurBond (10 Jan 2006)

bogwarrior said:
			
		

> The fact that it mentions "a monthly savings account" would suggest there is a maximum
> you can deposit into it at a time - I think AIB have launced a similar product recently
> (though with a lower interest rate).
> The product is obviously launched to attract the SSIA savers who've got
> ...



[broken link removed] is 3.25% gross* per annum (A.E.R. 3.25% - 4.875%). 

You set up a montly payment schedule but you can also pay into it using the NSC & Account No. as often as you like. You get a bonus if you don't withdraw any money.

It is easier to set up than RaboDirect, if you are an existing AIB customer, as you can do it all online without producing any documentation etc.


----------



## panindub (10 Jan 2006)

[broken link removed]

They have just release info on it now!

Problem is you must saving every month with direct debit between €10-€750
from what I can see!


----------



## ClubMan (10 Jan 2006)

Yeah - terms & conditions apply alright (my underlining):


> Customers have instant access to their money. Withdrawals can be made in branch, cheque or by electronic transfer. Customers can withdraw any amount up to the balance. If more than two withdrawals per year are made or monthly payments cease, the interest rate will revert to 1.75%
> 
> ...
> 
> The account must be opened for 12 months to qualify for the full savings rate.


----------



## CCOVICH (10 Jan 2006)

It's not really better than the AIB product (as a regular savings account), is it (other than the fact that you may not need a current account incurring fees to operate the BoSI account)?

I note that the 3.75% includes a 1.5% bonus (i.e. the rate is the ECB + 1.25%) and the rate will revert to the ECB base from January 2008.

It's still better than most products out there, but I don't think it is much to shout about when compared to AIB, Northern Rock and Rabo.


----------



## annR (10 Jan 2006)

And

"The amount saved each month can be changed once a year."


----------



## MugsGame (10 Jan 2006)

And
"Maximum Initial Investment €10,000"	

Like the AIB Online accout, this seems to be aimed at the SSIA market.
It is a good rate, but it seems like a loss-leader, otherwise they wouldn't limit the opening balance or the monthly payment.


----------



## mimi rogers (10 Jan 2006)

Do they plan on introducing current accounts from tomorrow? That's an important one.

Mimi


----------



## bogwarrior (10 Jan 2006)

from what i heard on the radio this morning, the current account won't be available for at least 6 months (i think the guy said its something to do with regulations).


----------



## ClubMan (10 Jan 2006)

According the the press release linked above:


> From tomorrow (Wednesday 11th January 2006), the Monthly Saver account will be available in Bank of Scotland (Ireland) branches, by telephone (T: 1890 81 81 81) or online at www.bankofscotland.ie.


----------



## mimi rogers (10 Jan 2006)

I think that all of their products should be made available from tomorrow. I don't like this bit by bit introduction. 

Mimi


----------



## ClubMan (10 Jan 2006)

mimi rogers said:
			
		

> I think that all of their products should be made available from tomorrow. I don't like this bit by bit introduction.


 This *alleged *bit by bit introduction surely? Nobody has stated authoritatively that this is the case yet. _bogwarrior's _comments are clearly a bit vague:


			
				bogwarrior said:
			
		

> from what i heard on the radio this morning, the current account won't be available for at least 6 months (i think the guy said its something to do with regulations).


----------



## CCOVICH (10 Jan 2006)

mimi rogers said:
			
		

> I think that all of their products should be made available from tomorrow. I don't like this bit by bit introduction.
> 
> Mimi


 
It takes time to roll out products and systems functionality.  It is easier to take deposits than to set up a current account (that may be along the lines of a loyalty account with various bells and whistles attached) system that will operate robustly. 

If you don't like it, ignore BoSI (and ACC!) and take your business elsewhere (or wait for Danske to enter with their current account offering).  There is choice, some better than others.


----------



## mimi rogers (10 Jan 2006)

I don't like what I see at the moment and I'm allowed to not like it. I do plan on taking my business elsewhere thanks. It would have been nice to see BOS roll out everything all at once. I'm sure I'm not the only one who thinks so. It would be more attractive for people to switch then and they would get even more business straight away.

Mimi


----------



## ClubMan (10 Jan 2006)

mimi rogers said:
			
		

> I don't like what I see at the moment and I'm allowed to not like it.


Who said you can't not like it?


----------



## mimi rogers (10 Jan 2006)

That's what it sounds like according to the tone. By the way I am not going to get drawn into a little tiff. They happen far too often on this site.

Mimi


----------



## ClubMan (10 Jan 2006)

Not sure whose "tone" you're referring to but I can see nothing untoward in the posts above responding to your points.


----------



## Protocol (10 Jan 2006)

From the Bank of Scotland (Ireland) website:

"A rapid series of product launches will follow. The product range will be based on sustainable pricing and offer customers of the big banks demonstrable value for money. They will have a real incentive to switch to Bank of Scotland (Ireland). A high profile, product led, advertising campaign will feature both print and TV ads."

So they do plan a "bit-by-bit" introduction, and there's nothing wrong with that.

Anybody who introduces more competition against the big two banks deserves applaud in my opinion.

3.75% is VERY GOOD.


----------



## ClubMan (10 Jan 2006)

Thanks for clarifying that the "bit by bit" rollout of products is, in fact, fact.


----------



## mimi rogers (10 Jan 2006)

"If you don't like it, ignore BoSI (and ACC!) and take your business elsewhere"

This phrase seems a bit arrogant to me.

Mimi


----------



## Alex (10 Jan 2006)

great news about bosi. i will be checking them out. i wonder will the savings account have an atm card??? does anyone know yet?

Alex.


----------



## CCOVICH (10 Jan 2006)

mimi rogers said:
			
		

> This phrase seems a bit arrogant to me.


 
I assure you it's not.  It was a suggestion.  I offered a suggestion as to why BoSI were not rolling out all their products together, and also suggested that if this wasn't satisfactory, the best course of action (after maybe a query/complaint to BoSI?) was to bank elsewhere, e.g. an established bank offering a full suite of services.  

You are of course free not to like something, but BoSI are under no obligation to roll out services as you would like.  

'Arrogant' suggests that I have a sense of self-importance or superiority-well I don't.  I've been a contributor to AAM for quite some time now, and I tend to have a standard set of responses for certain questions.  I also work in financial services, so like to think that I can provide a 'balanced' view, but that of course is a subjective opinion.

I certainly don't feel like I have anything to apologise for in suggesting that if you don't like the range of services offered by a business that you take your custom elsewhere.


----------



## mimi rogers (10 Jan 2006)

I am not looking for an apology. I was just saying what I thought.

Mimi


----------



## Samantha (10 Jan 2006)

Alex said:
			
		

> great news about bosi. i will be checking them out. i wonder will the savings account have an atm card??? does anyone know yet?
> 
> Alex.


 
If you are making more than 2 withdrawals a year, you won't be getting the rate of 3.75% so my guess will be no ATM card.


----------



## Alex (10 Jan 2006)

the 3.75% rate is very appealing. most of my money is with another bank but i get hardly any interest even though i have a good bit saved. i might transfer my savings to a bosi account. i would prefer higher interest than an atm card. a card would be nice though. i am pleased to hear that they will have longer opening hours. i wonder will they be doing foreign exchange also?

Alex.


----------



## CCOVICH (10 Jan 2006)

I'd adivise you to do some calculations and projections (nothing too complex, something on a spreadsheet) to compare the BoSI offering with the likes of Rabo, Northern Rock and AIB as I feel that the ts and cs might not suit as much as some people think.


----------



## kazbah (10 Jan 2006)

Samantha said:
			
		

> If you are making more than 2 withdrawals a year, you won't be getting the rate of 3.75% so my guess will be no ATM card.


 
Yes personally I don't feel an extra 0.5% over NR would compensate for on demand versus a limited 2 withdrawals per year.


----------



## podgerodge (10 Jan 2006)

I used their savings calculator entering the max initial investment of 10k and the max 750 a month savings for 1 year - the result comes back as


Deposits  - eur19,000
Interest  -  eur 557.81
Total Savings - eur19,557.81

Though it states in small print underneath that this is before deduction of DIRT,  I think it's a bit rich to include a gross figure before DIRT deduction under the heading of "Total Savings".  

It also says the interest calculation is as a result of "other assumptions" which can be provided on request.  How difficult would it have been to just spell them out there and then!

Also, if you use the calculator for more than one year am I right in wondering if the DIRT inclusion is going to throw the savings figure out more and more by each year?

Grand rate though.


----------



## MugsGame (10 Jan 2006)

I'd guess their assumptions are
- you qualify for the full interest rate (i.e. meet the required operating conditions)
- the ECB rate is constant during the year
- your initial direct debit follows immediately after the opening balance

And yes, the negative impact of DIRT would be compounded by longer periods.


----------



## Protocol (11 Jan 2006)

Hmm, their website seems to be down at the moment.

Bad sign for the first day.


----------



## ClubMan (11 Jan 2006)

Yeah - can't access it either.


----------



## Alex (11 Jan 2006)

i am having trouble with their website too.

Alex.


----------



## Alex (11 Jan 2006)

the bosi website is up and running now.

Alex.


----------



## dangerhere (11 Jan 2006)

I rang them and was efficiently dealt with. They are very anxious to give quotes based on deposits but omitted to clarify until asked that the amount is gross. Up to two withdrawals and the 3.75% stands. interest is added at the end of first year.


----------



## annR (11 Jan 2006)

I'm going to stick with NRock as I don't think the rigidity of the BoS offering is worth the extra interest.  NRock might match it anyway.


----------



## morpheus (12 Jan 2006)

> It takes time to roll out products and systems functionality.


 
  you have no idea...... 

Speaking from experience, there is a huge amount of work involved in getting a banks systems up and running, as each system has completed strenuous and time consuming phases im sure they will roll it out...

Not all systems will have taken the same length of time to develop, why hold back and lose money when you can start drip feeding off the consumer base with roll out of proven and prepared systems in this bit by bit fashion? It makes good business sense.


----------



## CCOVICH (12 Jan 2006)

morpheus said:
			
		

> you have no idea......


 
I do actually  .  I also am well aware of the dangers in rolling out products without buidling all the required funtionality.  This has led to huge problems with legacy products where no thought was given as to how the product would perform 10,15,20 years down the line.  Anyway, that's another story.

Mark Duffy (Chief Executive of BoSI) was quoted in yesterday's Irish Times as saying that the reason the current account wasn't going to be available until next year was due to the fact that there were problems accessing the clearing system (owned in part by the major Irish banks), who would have thought................


----------



## irishpancake (12 Jan 2006)

CCOVICH said:
			
		

> ...... Mark Duffy (Chief Executive of BoSI) was quoted in yesterday's Irish Times as saying that the reason the current account wasn't going to be available until next year was due to the fact that there were problems accessing the clearing system (owned in part by the major Irish banks), who would have thought................



I thought that BoSI had joined IPSO last year, see [broken link removed] from the Examiner Archives.

Also, they are on the list of


----------



## CCOVICH (12 Jan 2006)

According to the Examiner article, they joined IPSO in September, but were not due to become full members (i.e. have the ability to make and receive paper transfers in their own right) until November, and looking at the IPSO members list, they don't yet seem to be full members as they don't have ticks in all the boxes (like AIB, BoI, ptsb, NIB, UB and strangely, BNPP), so maybe they are still not full members?


----------



## Upstihaggity (12 Jan 2006)

According to the Examiner article, they joined IPSO in September, but were not due to become full members (i.e. have the ability to make and receive paper transfers in their own right) until November, and looking at the IPSO members list, they don't yet seem to be full members as they don't have ticks in all the boxes (like AIB, BoI, ptsb, NIB, UB and strangely, BNPP), so maybe they are still not full members?

: that's correct, they have not yet been issued a sort code .so therefore cannot operate their own clearing as yet, hence the delay. And this is as a result of the other members of IPSO dragging their feet.
Currently all payments are received through the central bank for the account of bank of scotland with a ref for the client name.


----------



## Alex (12 Jan 2006)

i don't mean to go off topic but are there any plans to introduce more banks after bosi? i have often wondered why hsbc don't open a few branches here??? hsbc are already in several countries from what i see. i understand that they do have an office in ireland but they don't do high street banking.

Alex.


----------



## ClubMan (13 Jan 2006)

Somebody else mentioned _Danske Bank_ as another player who may be entering the market. Not sure if they already have any interest in any existing institutions here.


----------



## irishpancake (13 Jan 2006)

ClubMan said:
			
		

> Somebody else mentioned _Danske Bank_ as another player who may be entering the market. Not sure if they already have any interest in any existing institutions here.




Danske are already in the market, in the form of NIB. see [broken link removed], circa Dec 2004

see also this Mortgage Speculation from Aug 2005 (Unison requires one-time registration). We await developements with bated breath


----------



## ClubMan (13 Jan 2006)

OK - thanks for that clarification. Forgot that it was _NIB _they (part?) owned.


----------



## Alex (13 Jan 2006)

irishpancake said:
			
		

> Danske are already in the market, in the form of NIB. see [broken link removed], circa Dec 2004
> 
> see also this Mortgage Speculation from Aug 2005 (Unison requires one-time registration). We await developements with bated breath


 
that's very true. they did take over nib. nib was owned by national australia bank until recently.

Alex.


----------



## Rujib (18 Jan 2006)

Well, I sauntered into my local Bank of Ireland and told the lady at the counter that I wanted to close my smart save account which gives 1.75% at the moment. Right now I have €23400 in the account.
She duly asked me if I minded telling her why. I said BOSI, are giving much better interest.

She duly scuttled off to bring a more senior member of staff.
I have an appointment on Friday with a guy from regional office to discuss my overall financial requirements.

PS : I also got a cup of coffee!!!!

I am 29 years with this bank. Never ever, been give a second glance in doing my business.
I'm gonna tell this guy, I want 4% and no negotiation.
I'm gonna get a little satisfaction for once.

Tks.


----------



## kazbah (18 Jan 2006)

I would be shocked if you get it.
I moved to PTSB after 15+ years banking with BoI because fees were non-negotiable.


----------



## MugsGame (18 Jan 2006)

Here's betting they try and upsell you an equity product. Happened to me when I went in to AIB to withdraw a similar amount a few years ago when moving to Anglo. I was on my lunch break and had to kick up a stink to actually get my money there and then.

Note, from BOSI Terms and Conditions: "Maximum Initial Investment €10,000"


----------



## ClubMan (18 Jan 2006)

Yeah - "financial reviews" by tied agents are simply opportunities for them to flog you some of their products. Expect some hard selling. But enjoy the coffee and steal a few pens if you get the chance!


----------



## Alex (20 Feb 2006)

any sign of them doing foreign exchange yet? they have rolled out a few products since they launched.

Alex.


----------

