# What next for Rabo?



## TheBigLebows (24 May 2007)

I'm just wondering does anyone want to hazard a guess at what Rabo might offer next. As most of us know, Rabo's 5% offer comes to an end at the end of the year. The type of customer which Rabo has attracted are people who are willing to move their money for the best rate (otherwise they wouldn't be with Rabo!) so if they dont come up with something, most customers will up sticks and move!
There are a host of other places offering better than the standard variable rate which Rabo are promising to offer after 31-12-07. This along with the fact that their investment fees are generally regarded as being quite high, they really don't have much else to offer! Just wondering what y'all reckon they have up their sleeve, if anything...


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## CollyD (24 May 2007)

As you said it is easy to move so that should spur them into making decisions, who knows time will tell.


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## ClubMan (24 May 2007)

TheBigLebows said:


> There are a host of other places offering better than the standard variable rate which Rabo are promising to offer after 31-12-07.


Where do _Rabo _say what they will offer from that date? All I can see on their website is that "standard rates" will apply from then but it's not clear what this rate is currently.


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## SS expert (25 May 2007)

which of the two (rabo or nothernrock) had better rates 2 years ago?


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## ClubMan (25 May 2007)

_NR _I think but even in this context past performance may not be a guide to future returns!


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## RaboDirect (25 May 2007)

The current situation is that we pay 5.0% on balances up to €10,000 and 3.75% (the current standard variable rate) on balances over €10,000 and up to €1 million. These rates are of course variable and will be in place until 31 Dec 07. 

Since we launched in Ireland in May 05 I think it's fair to say that we certainly upped the ante on savings rates in this market and our history shows that we have always been very competitive. We are very conscious of the need to remain so and will not be found wanting in this regard. Of course, in the spirit of Web 2.0 and user generated content, we would genuinely welcome suggestions on the type of products you would like to see (and no, we won't be offering 10% on demand for lump sums!!). 

On the Investment side, we do not believe we are 'expensive on fees' although there has been comment on AAM about Quinn Life and ETF's etc being cheaper. We all offer different products which can make direct comparisons somewhat difficult. We are allowed by the fund providers we use to charge up to 5% on entry - we choose only to charge .75%. We are upfront about fees. We would say that as a whole, the industry does lack transparency on fees and this makes it very difficult for investors to actually determine what the underlying fees and charges are of certain products, most notably the bond products that are frequently discussed on AAM. No doubt the AAM members who think we are expensive will remain unconvinced which is fair enough (Clubman ...please be gentle!!) But we do listen to the feedback.

RaboDirect


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## ClubMan (25 May 2007)

RaboDirect said:


> But we do listen to the feedback.


Why not reduce your investment product charges so?


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## Sarsfield (25 May 2007)

I'm waiting to see a tax calculator for Rabo Investments.  Ideally I'd like tax to be decucted automatically on encashment.


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## RaboDirect (25 May 2007)

Sarsfield said:


> I'm waiting to see a tax calculator for Rabo Investments. Ideally I'd like tax to be decucted automatically on encashment.


 
We are putting the specifications together at the moment for the profit & loss calculator so we'll able to report progress on that over the next few months. It should make life a lot easier for people particularly those who invest regular amounts over time. 

We sought taxation advice re automatically deducting tax and we are not allowed to this. It would require a change in Revenue rules and this isn't going to happen I'm afraid. But the P&L caclulator will ease the burden of making your tax return.


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## CCOVICH (25 May 2007)

RaboDirect said:
			
		

> We sought taxation advice re automatically deducting tax and we are not allowed to this. It would require a change in Revenue rules and this isn't going to happen I'm afraid.


 
Could it also be accomplished by a change in the Rabo operating model?


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## sulo (25 May 2007)

going back to the original question - what do I think they'll have up their sleeves... Not sure but i hope its alongside the 5% they currently offer or better!

If not, I will be keeing an eye on who is offering the best and moving their pronto!


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## RaboDirect (25 May 2007)

CCOVICH said:


> Could it also be accomplished by a change in the Rabo operating model?


 
The change would be huge for us to be honest right now - we currently offer UCITS managed funds domiciled in Luxembourg. To move away from that model now would be quite significant. We are currently in the process of redesigning our public website - when that's done we will publish our fund selction policy which will outline why and how we choose fund providers and their funds. We believe that the international funds we offer (with more to come next month) offer good diversity for the investor, a minimum entry of €100, and the independent ratings from Morningstar and Standard & Poor's add value to the investor. Irish domiciled do not have these ratings. 

Index funds or ETF's - we don't currently offer these funds as you will be aware and we have no plans in the short to medium term to do so. We could argue all day about the pro's and con's of index v actively managed funds but suffice to say, there is a market for both. 

As an execution-only provider we stay away from 'complex instruments' where these products require financial advice, e,g, capital guaranteed products and the like. The forthcoming Market for Financial Instruments Directive (MiFID) would prevent us from offering such products as an execution-only provider in any case. 

As mentioned above, the P&L calculator will make life easier when it comes to submitting your tax return so this should be less of factor moving forward.


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## ClubMan (25 May 2007)

RaboDirect said:


> The change would be huge for us to be honest right now - we currently offer UCITS managed funds domiciled in Luxembourg.


It is the domicile that's the problem? After all _EBS _for one offer(ed?) _UCITS _(under their erstwhile _Summit Funds _brand)and deducted tax within the funds.


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## CCOVICH (25 May 2007)

Thanks-a yes/no answer was all I was looking for  .


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## longarrow (26 May 2007)

For a non-permanent resident in Ireland, is he entitled to apply for an investment account in Rabo?


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## RaboDirect (27 May 2007)

longarrow said:


> For a non-permanent resident in Ireland, is he entitled to apply for an investment account in Rabo?



No. We only open savings & investment accounts for permanent residents of the Republic of Ireland. We are also unable to open Investment accounts for Amercian citizens if they have become permanent residents of Ireland.


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