# KBC Launch Free Current Account, 4.00% Regular Saver and 1.40% Term Deposit



## Lightning (5 Oct 2015)

Wow! KBC have 3 big product announcements.

[broken link removed]

Firstly, what appears to be a free current account. However, you must deposit at least 2,500 EUR per month into the account.



> FREE ATM & Cheque transactions
> FREE Contactless Debit Card purchases
> FREE Online and Mobile Banking
> FREE Direct Debit & Standing Orders
> ...



Secondly, a 4.00% AER regular saver product called a Flex Regular Saver allowing a 10,000 EUR lump sum deposits. You must have a Flex Current Account.

Thirdly, a 1.40% AER 1 year term deposit. You must have a Flex Current Account.

I am still trying to read through all the T&C's.


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## Brendan Burgess (6 Oct 2015)

Hi Ciarán 

Let's look at this and see what it is worth. 

*For KBC mortgage holders, it's a no-brainer to hold a current account as they will get a discount of 0.2% on the mortgage rate. *

*Non KBC mortgage customers *
I have an AIB account and pay around €80 a year in bank charges.  This seems a reasonable fee to me. But if someone offers the same or better service free of charge, maybe I will consider it. 

"If you fail to lodge €2,500 to your Flex Current Account in any given month, you will be liable for all fees and charges applicable to a standard KBC Current Account as set out in our Fees and Charges Booklet for the whole of the quarter in which that month fell. You will continue to be liable for such fees and charges until such time as you recommence making the minimum lodgement of €2,500 a month. Should you recommence making the minimum lodgement of €2,500 every month, you will be re-eligible for the benefits from the beginning of the next quarter"

I have volatile income and so might not have €2,500 each month. If I miss one month, I pay fees for the full quarter.  So it's not worth changing for me. 

*Is the Regular Saver worthwhile? *

*


*

*Important Information*

To hold a Flex Regular Saver you must hold a Flex Current Account.

*Flex Regular Saver*

4% AER
Save €100 - €1,000 per month(Funds must be lodged from your Flex Current Account.)
Withdraw funds on demand (Funds must be withdrawn to your Flex Current Account.)

1 lump sum of up to €10,000 permitted
Max balance €40,000 (Any balance over this limit will earn interest at the Standard Demand Deposit Account interest rate.)

Up to two monthly payment breaks allowed each calandar year


If you already have €10,000 and you are committing to regular savings, then this probably is worthwhile. 

Of course, if you have a KBC non-tracker mortgage, you should be paying off your mortgage instead. 

Brendan


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## DMcL1971 (6 Oct 2015)

If you already have an existing Regular Saver Account, you can still open a new Flex Regular Saver. However you cannot continue to pay into the old Regular Saver. The full balance of the old Regular Saver will continue to earn interest at the Regular Saver interest rate. While any money in the new Flex Regular Saver will earn interest at the Flex Regular Saver Rate.

Example if your Regular Saver balance is currently 15K earning 2.5% interest, you could do any of the following.
A. Leave 15K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with a balance of zero earning 4% on new deposits.
B. Leave 15K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with a new deposit of up to 10K earning 4%.
C. Leave 5K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with 10K from old Regular Saver earning 4%.

Note: Regular Saver Rate of 2.5% drops to 2.00% on 12/10/2015.


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## Sarenco (6 Oct 2015)

Hi Brendan

Just to note that if you maintain a daily balance of at least €2,500 in your AIB current account for a full quarter, regardless of what lodgements (if any) you make during that quarter, the fees for that quarter will be refunded.

Also, I don't think your calculation on the benefits of the new KBC regular savings account is correct.  By my calculations, the additional interest after DIRT would be around €287.


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## Fella (6 Oct 2015)

Can you just lodge the 2500 in month one and withdraw it again and re deposit it in month 2 ?


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## Brendan Burgess (6 Oct 2015)

Sarenco said:


> By my calculations, the additional interest after DIRT would be around €287.



My figure is to give an indication of the rough amount saved per year. I think mine would be correct for the period from 6 months to 18 months. It would be less for the first year, and more for the second year.


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## Brendan Burgess (6 Oct 2015)

Sarenco said:


> Just to note that if you maintain a daily balance of at least €2,500 in your AIB current account for a full quarter, regardless of what lodgements (if any) you make during that quarter, the fees for that quarter will be refunded.



Yes, but I would rarely do that.  With KBC, you just have to lodge the money. You can take it out again immediately.


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## Sarenco (6 Oct 2015)

Brendan Burgess said:


> My figure is to give an indication of the rough amount saved per year. I think mine would be correct for the period from 6 months to 18 months. It would be less for the first year, and more for the second year.



Yes, assuming the rates don't change (which is a big assumption when it comes to KBC!), the maximum additional interest from months 6 to 18 would be around €338 (after DIRT).

One condition with the account that I don't like is that if you fail to lodge the monthly amount of €2,500 to your Flex Current Account on more than one occasion or close your Flex Current Account you lose the benefits of the Flex Deposit Account  (including any bonus interest rates).  Even where you recommence lodgements of €2,500 to your Flex Current Account the benefits of the Flex Deposit Account (including any bonus interest rate) cease to apply and may not be re-instated.


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## Lightning (6 Oct 2015)

I have updated and corrected the wording in the best buys for the KBC Flex Regular Saver product. I have a note about what happens if you already have a KBC Regular Saver product and also what happens if you do not deposit at least €2,500 to your Flex Current Account every month. 

Good analysis Brendan. 



Brendan Burgess said:


> I have volatile income and so might not have €2,500 each month. If I miss one month, I pay fees for the full quarter. So it's not worth changing for me.



You can wire in and out €2,500 each month. It does not need to be fresh new income each month. 



Sarenco said:


> Yes, assuming the rates don't change (which is a big assumption when it comes to KBC!)



Yeah, you can bet that this is a promo rate by KBC that will drop in the not too distant future.


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## Brendan Burgess (6 Oct 2015)

CiaranT said:


> Yeah, you can bet that this is a promo rate by KBC that will drop in the not too distant future.



Hi Ciarán 

So my analysis is a waste of time, if they are going to reduce the rate? 

Or maybe it just means you close the account and switch your deposit to whichever bank gives you the best rate.

Brendan


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## Sarenco (6 Oct 2015)

Well, you can certainly move your deposit elsewhere but you risk losing the "bonus" interest if you fail to comply with the terms of the account.


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## Boyd (7 Oct 2015)

Really struggling to know if it's worth opening these: I have 15k in existing KBC regular saver and plan on continuing this at 1k per month. I'm not existing KBC current account holder. I'm thinking of opening these, moving in 10k from existing saver, leaving remaining 5k where it is. I'm just concerned KBC will drop rate in six months and all will be for nothing....


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## Gervan (7 Oct 2015)

I am an avid chaser after the best interest rate, but there has been so much change from KBC even I am debating whether this is worth it.

 We opened 3 regular savers back in 2014 when the rule said the money had to be paid in by standing order set up from any bank.
Then, the rule changed, and the Reg. savers input had to come from a KBC current account.
We opened a joint current account, and new regular saver accounts, keeping the others dormant (mostly) at a good rate.
Then the rule changed so each regular saver had to be fed from a current account in the same name.
We opened individual current accounts.
We now have 3 current accounts and 6 regular savers. The confusion at times has been draining, making sure each feeder account has enough funds for the date of the standing order.

Can I cope with more current accounts and reg savers? 
I have asked whether over 60s would have to deposit €2500 each month to avoid monthly fees. That might be the deciding factor.
Our other KBC current accounts do not cost us anything.


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## Sarenco (7 Oct 2015)

Fully agree.  The sheer complexity of this product is really off-putting, particularly when the interest rate is not fixed for any period of time (unlike the EBS regular savings offering). 

Think I'll pass.


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## Lightning (7 Oct 2015)

Agreed that there is a limit to the level of complexity that one can handle with multiple accounts and multiple wires per month. 



Gervan said:


> Can I cope with more current accounts and reg savers?



Perhaps, KBC will let you change the classification of your existing current account to a Flex current account.


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## uli84 (10 Nov 2015)

do you know if I am going to lose *the discount of 0.2% on the mortgage rate if I *move from my KBC current account to KBC Flex current account? or KBC flex current account also gives discounted mortgage rate? thanks


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## DMcL1971 (10 Nov 2015)

The Flex Current Account also has a 0.2% mortgage discount, so I would imagine that you would not lose it. However I would strongly advise you to give them a quick call (1800 939 244) just to make sure that it still applies when changing from the existing current account as opposed to being a new customer.


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## DMcL1971 (10 Nov 2015)

I just came across this thread on boards.ie where KBC customer care staff answer questions and your question has been asked. KBC confirmed that you will keep your discount.

http://www.boards.ie/ttfthread/2057505114


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## heisenberg (19 Nov 2015)

Does anyone know if it has to be a single lodgement of €2500 or would a series of lodgements still qualify, for example; lodging €1000, then another €1000 a week later and finally €500 another time, all within the space of the calendar month?


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## Lightning (20 Nov 2015)

Series of lodgements inside one calendar month is fine.


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## Gordon Gekko (20 Nov 2015)

CiaranT said:


> Series of lodgements inside one calendar month is fine.



Silly question (perhaps)...does salary count?


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## Lightning (20 Nov 2015)

Salary counts.


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## heisenberg (21 Nov 2015)

CiaranT said:


> Series of lodgements inside one calendar month is fine.



Thanks. Does the source of funds matter i.e. what if I transfer €2500 back and forth from another KBC savings account? I know it's a bit of a cheat, but does it still count?


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## johnsmyth (22 Nov 2015)

Is it really worth it? Moving money back and forth for 4% savings account.


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## Connard (22 Nov 2015)

johnsmyth said:


> Is it really worth it? Moving money back and forth for 4% savings account.



Doing that would take about 5 seconds a month using online banking. It's not like it's a huge amount of hassle.


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## Lightning (22 Nov 2015)

heisenberg said:


> Thanks. Does the source of funds matter i.e. what if I transfer €2500 back and forth from another KBC savings account? I know it's a bit of a cheat, but does it still count?



The T&C's do not restrict the source of funds to be an external account.

Hence, transferring €2,500 in from another instant access KBC account and €1,500 out leaving €1,000 for the standing order to the KBC Extra Regular Saver would work.


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## Lightning (22 Nov 2015)

johnsmyth said:


> Is it really worth it? Moving money back and forth for 4% savings account.



Well worth it. Assuming rates don't drop for a little while, one can easily make several hundred euro out of this product.


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## Boyd (22 Nov 2015)

CiaranT said:


> Well worth it. Assuming rates don't drop for a little while, one can easily make several hundred euro out of this product.



Thats a huge assumption though! Their 4% regular saver didnt even last a year. In fact its half what it was when I opened it this time last year. KBC suck for dropping rates after getting you to jump through hoop after hoop to get the thing set up.


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## Lightning (22 Nov 2015)

The 4.00% AER rate will drop. The earlier you jump on board the more you gain from the high rate especially with the 10k lump sum allowed.


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## Gondola (22 Dec 2015)

I went in to the KBC site today to check whether the Flex Regular Saver Account is still available and I was not able to see this product mentioned anywhere. Does anyone know whether it has been already discontinued? It seems strange that they would discontinue so soon after the October announcement, but - at the same time - it was very generous.


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## Lightning (22 Dec 2015)

The product is still available, now called the Extra Regular Saver. See this page 
https://www.kbc.ie/Our-Products/KBC-Current-Account/Current-Account/Extra


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## lathyrus (19 Jan 2016)

The 12 month term deposit rate linked to this Extra Current Account has been cut to 1.35%


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## Lightning (19 Jan 2016)

Yeah, the best buys were updated yesterday to reflect this rate cut.


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## pudds (4 Apr 2016)

Toying if I should go for this or the EBS Family saver.  

I would be lodging 2.5 per month and withdrawing 1.5k leaving 1k for the standing order. 
The 1.5k would be in and out almost instantly or the next day.

I wouldn't be using the current account in any other way.

Is that ok and is there anything I need to watch out for.


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## DMcL1971 (4 Apr 2016)

You should be OK, I have been doing something similar for the last 5 months. I transfer 2.5K into it on the last business day of the month. I then have two SO's set up for the first of the month, one to the regular saver and another to send the remaining 1.5K back to my external current account.


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## pudds (4 Apr 2016)

In the best buys, it says you can get 4% but on their website all I can see is 2% + a 1% bonus.

_As an optional extra with your KBC Current Account, *you can get a 1% bonus* on top of the current KBC Regular Saver rate of 2%. That’s a 3% gross/AER variable to help you save for something special. This Offer  continues until further notice.  We will provide 30 days prior notice of the withdrawal of this offer._


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## Gervan (4 Apr 2016)

Pudds, you need to read the Extra current account details not the current account.


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## DMcL1971 (4 Apr 2016)

Gervan said:


> Pudds, you need to read the Extra current account details not the current account.



https://www.kbc.ie/Our-Products/KBC-Current-Account/Current-Account/Extra

The Extra Regular Saver Account is shown on the left hand side.


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## DMcL1971 (4 Apr 2016)

A major advantage of this account over the EBS regular saver is that you can lodge up to 10K at opening time. Also the rate is one percent higher. The downside is having to lodge 2.5K in the current account. Also the 4% rate is variable. It could drop at any time whereas the EBS rate of 3% is guaranteed for the first year.


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## pudds (5 Apr 2016)

Cheers lads, think I'll give kbc a shot, the initial 10k lodgement is very attractive so the yield would be a lot better than EBS, even if kbc dropped the rate to 3%


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## pudds (12 Apr 2016)

If no intention of using the debit card should it be activated anyway.


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## DMcL1971 (12 Apr 2016)

You don't have to use it but it might be a good idea just to activate it anyway, in case you change your mind at a later stage. There is no cost now that the debit card levy has been changed to an ATM withdrawal levy instead.


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## pudds (19 Apr 2016)

I was down in their Waterford hub today opening an account and I queried this.  _The amount being saved per month can only be changed by written request by providing at least 14 days notice._

She said I could save what ever amount I like between (100-1000) pm by cancelling the s/o and creating a new one.  She explained that the 14days notice is only for people calling into their hubs to get this done.

I pushed her again saying I thought any change in amt being saved required prior approval. Not at all she said.

Anyone else aware of this.


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## DMcL1971 (20 Apr 2016)

She seems to be correct about this. The below is taken from their most recent Terms & Conditions. In the section relating to the Extra Regular Saver Account (formerly known as the Flex Regular Saver Account). It clearly says that the Standing Order amount can be changed at any time as long as it is between 100 and 1000. There is no mention of written notice or a time frame. Which all makes sense, why bother with written notices when you have online banking where you can do this yourself.

85.11.5
You can only pay funds into the Extra Regular Saver by way of Standing Order from your Extra Current
Account to credit your Extra Regular Saver. The standing order can only come from your KBC Extra Current
Account and not from any other KBC account or any account with another financial institution. The Standing
Order must be for not less than €100 and not more than €1,000 per month. The Standing Order amount can
be changed at any time but can only be increased or decreased within these limits.


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## Daniel (20 Apr 2016)

I've just opened up a KBC Current account along with the KBC Extra Regular Savings account. Even though there is a €10k limit on the one-off lump sum payment that you can make to the account, I said I would try and transfer in more anyway and see what happened. I did the transfer online and it let me transfer the full balance of my existing Regular Savings account (~€22k). I did this over a week ago and I haven't received any notification from the bank saying that I should remove the excess funds. I wonder will they pay the full 4% on the entire balance? I'd like to close the old Regular Savings account now that the new one is open but I don't want to do this if they transfer the excess funds back into it.


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## elcato (20 Apr 2016)

Daniel said:


> I did the transfer online and it let me transfer the full balance of my existing Regular Savings account (~€22k). I did this over a week ago and I haven't received any notification from the bank saying that I should remove the excess funds.


 They probably have a condition in there that you either only get interest on the 10k or that you may get no interest on any of it. I would certainly not wait for them to 'get back to you'.


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## DMcL1971 (20 Apr 2016)

Daniel said:


> I wonder will they pay the full 4% on the entire balance? I'd like to close the old Regular Savings account now that the new one is open but I don't want to do this if they transfer the excess funds back into it.



It's a bit of a gamble. I have been with KBC for a number of years and have had many of their different products. They often have published limitations on their products but their system allows you to break those rules, as you have seen for yourself. I would imagine that you would receive the 4% on the full amount.

However, their Terms & Conditions don't cover any of this as theoretically it is not possible. Therefore if anyone in the bank notices this at any stage in the future it is impossible to say what they might do about it. It depends whether they ever run reports to check their rules. You could claim that you misunderstood the rules when you made the lodgement and tell them that they shouldn't have let you do it and therefore it is their fault but they might not accept that.

So, maybe you will make 4% and that will be great or you may end up losing out on some, or all, interest on all of, or part of your 22K. Who knows, you'll have to let your conscience decide!


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## Daniel (22 Apr 2016)

You would think that their system would prevent you from depositing more than the allowed amount. I know PTSB's regular saving account will not allow you transfer more than the monthly limit into it in any given month so I would have assumed that KBC would have their system set-up in the same way.

I guess it's a bit of a gamble alright. Worst case scenario is I get no interest on any of the amount. They won't pay their interest until the end of December so I'd have to wait until then to find out.

As you say I could just say that I was not aware of the restriction if they did refuse to pay the interest but again it's a gamble. I'll have to work out how much interest I could lose between here and December and see if it's worth leaving it there or not. Thanks for the replies.


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## aanyadsouza (27 Apr 2016)

Still confused


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## pudds (3 May 2016)

Got a letter a week ago confirming my dirt exemption and another letter today confirming that I am now subject to dirt as per my request. I thought I was bad


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## Daniel (27 Sep 2016)

Daniel said:


> I've just opened up a KBC Current account along with the KBC Extra Regular Savings account. Even though there is a €10k limit on the one-off lump sum payment that you can make to the account, I said I would try and transfer in more anyway and see what happened. I did the transfer online and it let me transfer the full balance of my existing Regular Savings account (~€22k). I did this over a week ago and I haven't received any notification from the bank saying that I should remove the excess funds. I wonder will they pay the full 4% on the entire balance? I'd like to close the old Regular Savings account now that the new one is open but I don't want to do this if they transfer the excess funds back into it.



Caught! I got the following text message last week:

"Hi Daniel, thank you for saving with KBC. The KBC Extra Regular Saver account allows you to lodge a once off lump sum of up to €10,000 and a maximum of €1,000 into your account monthly. Recent funds lodged to this account are outside of the criteria and will be returned in full to the originating account over the coming days. For more information & to view FAQ's, please click here http://oxy.bz/dFtOewgx/?ttid=XQB9HDCJ"

Funnily enough though it wasn't the initial €22k that they caught me on. About a month or 2 ago I needed to make a withdrawal of just over €6k from the account. I transferred the amount into my KBC current account but for some reason the savings and current account balances didn't update immediately. I thought that for some reason the transfer didn't go through, so I did it again. However the initial transfer did go through along with the next transfer so I was left with €12k in my current account. I transferred €6k back to the savings account, it was this €6k that they spotted and they have now transferred it back to my KBC current account.

Maybe this was a sign, I'm now left with €6k that I need to invest. The only way I'll put any money in savings / deposit accounts is if it's getting the 3.5% rate that KBC are offering. So this will force me to invest it in something riskier / higher returning (only time will tell if that is a good or bad thing! ).


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