# New Rabo savings rate of 4.75%



## Squonk (20 Dec 2006)

I see Rabo have increased their savings rate to 4.75% for balances up to €10k. Above €10k they are offering 3.7% on the balance, still less than Northern Rock (at 4.15%). See below (on the link they've finally acknowledged Northern Rock's existance!):

We currently offer a rate of 3.70%**.  However, from the 1st of January 2007 to the 31st of December 2007 we will be offering our customers a variable rate of *4.75%** on savings from €1 up to €10,000.  Balances from €10,000 up to €1 million will get a variable rate of 3.70%** on their savings. Standard variable rates will apply thereafter. 

[broken link removed]


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## funlovin (20 Dec 2006)

ive 50k with northern rock .should i now open five accounts with rabo ? and switch ?


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## DrMoriarty (20 Dec 2006)

[broken link removed]
Do it through pigsback.com and get 2,000 piggypoints for each new account..!  
[broken link removed]​


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## cartman123 (20 Dec 2006)

i'm just going to move 10,000 from NR to Rabodirect on Jan 1st. Good to see competition on the market though.


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## oldtimer (20 Dec 2006)

Yes, I will do the same as Cartman. Will open two accounts, one for myself and one for Mrs Oldtimer, allowing me to move €20,000. Will have to open separate accounts. For a joint account the max remains €10,000.


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## smiley (20 Dec 2006)

not bad..but dont forget that each time the ecb increased their interest rate by 0.25% rabo did not pass on the full 0.25%...i think they usually only passed on 0.15%....the other banks are guilty of this too!


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## RaboDirect (20 Dec 2006)

Smiley, you are of course correct in stating that RaboDirect hasn't passed on ECB increases by the full amount. However, RaboDirect has consistently paid a magin well above the prevailing ECB rate for money on demand as opposed to money on notice. 

Since our market entry in May 2005 we have forced the other banks including Northern Rock to increase their rates. The vast majority of our customers are not in the millionaire bracket so we believe that offeing a rate of 4.75% for balances up to €10,000 represents fantastic value and more flexibility than regular saving type products which generally come with many restrictions. For balances over €10,000 we will pay 3.70% on demand which over the ECB rate. 

Regards,
RaboDirect


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## bacchus (20 Dec 2006)

I would be surprised if NR does not respond to Rabo's rate increase.


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## Omega (20 Dec 2006)

Am I missing something here but are not AIB and BOI offering interest rates higher than 4.75%?


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## Satanta (20 Dec 2006)

pgf5312 said:


> Am I missing something here but are not AIB and BOI offering interest rates higher than 4.75%?


Different product with different Ts&Cs and conditions.

The AIB and BOI products you suggest are probably (correct me if I'm wrong) the regular monthly saver accounts. These have a max amount which can be added each month and have other limits on the number of withdrawals etc.


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## garretokelly (20 Dec 2006)

am I right in thinking that if you put in €9,500 you'd get ~€450 interest,  €9,999 would get ~€470, but if you put in €10,001 you'ld get €370 ?

..or have I misunderstood things


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## garretokelly (20 Dec 2006)

... (minus DIRT in each case)


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## Sarsfield (20 Dec 2006)

garretokelly said:


> am I right in thinking that if you put in €9,500 you'd get ~€450 interest, €9,999 would get ~€470, but if you put in €10,001 you'ld get €370 ?
> 
> ..or have I misunderstood things


 
I'm sure you'd get €10K @ 4.75% and €1 @ 3.7%

So €475.04 (rounded) in total. Minus DIRT.


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## Satanta (20 Dec 2006)

The question was raised here, in this post. It never recieved any clarification. Nothing on the Rabo site seems to directly answer this either. 

From the reading of the rates as given, I would tend not to assume the higher rate is given (on the first €10k). I'm sure RD will clarify this shortly.


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## oldtimer (20 Dec 2006)

I would say Sarsfield is correct. Rabodirect state in their website €10,000 will earn €475 in year. I intend putting in just that amount, €10,000. If i put in €11,000 I assume its €1,000 at 3.70%. It would look silly if all €11,000 was at 3.70%. I'm unsure why Rabodirect are doing it this way. It encourages savers to put €10,000 only in Rabodirect and then  to Northern Rock (4.15%) or/and National Irish Bank(4%). My gut feeling also is Northern Rock (or another bank) are going to re-act to this.


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## Squonk (20 Dec 2006)

I think their press-release is clear.: 4.75% up to €10k, and €3.70% on the balance thereafter. See below again :

However, from the 1st of January 2007 to the 31st of December 2007 we will be offering our customers a variable rate of *4.75%** on savings from €1 up to €10,000. Balances from €10,000 up to €1 million will get a variable rate of 3.70%** on their savings


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## MugsGame (20 Dec 2006)

I don't think it's clear at all. They don't use the word 'thereafter'. If anything I'm leaning towards the other interpretation, though it is silly and I hope I'm wrong.


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## ClubMan (20 Dec 2006)

I agree - it's not clear. Also - if the lower rate applies to the full balance over €10K then lodging €10K will mean that you'll only get the lower rate after the first sum of interest is credited to the account!


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## Guest111 (20 Dec 2006)

ClubMan said:


> I agree - it's not clear. Also - if the lower rate applies to the full balance over €10K then lodging €10K will mean that you'll only get the lower rate after the first sum of interest is credited to the account!


 
Which would lead one to believe the 4.75% is on the first 10 grand. The scenario you have pointed out is plainly ridiculous.


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## oldtimer (20 Dec 2006)

I was concerned about what Clubman says, but the Rabodirect site states ' interest earned on €10,000 in 1 year will earn €475 interest. You will get 3.70% on balances from €10,000 to €1m.'  This seems clear to me if I deposit €10,000 in January I will get €475 (€380 after dirt) after a year. Another point - I wonder could that 4.75% change over the course of the year. Isn't the rate variable?


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## Sarsfield (20 Dec 2006)

I still think I was probably correct in my earlier post, but have to agree it's not at all clear.



> Balances from €10,000 up to €1 million will get a variable rate of 3.70%** on their savings


 
A rigid interpretation of that says a balance of 10,001 will earn 3.7%. But I'm sure they can't have meant that.


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## ClubMan (21 Dec 2006)

Sarsfield said:


> A rigid interpretation of that says a balance of 10,001 will earn 3.7%. But I'm sure they can't have meant that.


I wouldn't be so sure until _Rabo _can give clarity one way or another!


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## RaboDirect (21 Dec 2006)

Clarification as requested:
Existing and new customers will earn a variable rate of 4.75% on demand on the first €10,000, ie, €475 before DIRT. 
Thereafter, balances from €10,001 up to €1 million will earn a variable 3.70% on demand. Balances in excess of €1 million attract a variable rate of 2.70% on demand. 

This is a tiered rate structure. 
For example: a customer has a balance of €15,000:
The first €10,000 earns 4.75%
The remaining €5,000 earns 3.70%. 

This tiered rate structure will be in place from Jan 1 - Dec 31 2007. The rates are variable. We don't flag in advance what we will do with our rates due to commercial sensitivities. However, RaboDirect has been a very strong competitor since it launched in Ireland and will continue to be so. 

I trust this clarifies the matter.

Regards,
RaboDirect


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## DrMoriarty (21 Dec 2006)

RaboDirect, someone in your marketing dept. should really get around to updating the (presumably expensive?) banner ad at the top right of the _Irish Independent_ ... which still boasts a juicy !


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## bacchus (21 Dec 2006)

RaboDirect said:


> Existing and new customers will earn a variable rate of 4.75% on demand on the first €10,000, ie, €475 before DIRT.
> Thereafter, balances from €10,001 up to €1 million will earn a variable 3.70% on demand. Balances in excess of €1 million attract a variable rate of 2.70% on demand.


 
so the more i save, the less i get ....


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