# AIB not paying correct rate of interest to online saving account



## boomboom4780 (3 Apr 2010)

I opened up an Online Personal Savings Plan bank account with AIB 18 months ago. I have just received my rate of interest and it is definitely wrong! 
The Variable interest rate is at present 2.25% per annum (A.E.R. 2.25% - 3.375%) and has been 2.25% for the last 11 months. Before then it was 2.5% so how have they only paid me interest that works out as 1.54% ?

There is a yearly bonus of 20% of interest earned so by my calculations I am
almost 200 euro short in interest owed from the bank.

Has anybody else had similar issues with AIB or other banks?

I aim to get in touch with the bank but will have to wait until the long weekend passes so if anybody can help I woukld much appreciate it.

Thanks


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## twofor1 (3 Apr 2010)

Could DIRT be part of the answer ?

As you are contributing monthly, not all of your balance earns interest for the full year, could this also be part of the answer ?


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## twofor1 (3 Apr 2010)

Aib’s savings helpline is open Saturdays 09.00 – 18.00, 1890 724724.


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## Fanny (3 Apr 2010)

Exact same here. Interest is definitely too low. If anyone has already called AIB helpline, please let us know what the story is.


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## HP_happy (3 Apr 2010)

Does AIB use 360 counts rather than 365 days? I think AIB pays a wrong interest to the businss account a well.


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## mathepac (3 Apr 2010)

As a general rule, banks use 360 days for private interest-earning account calculations and 365 for other types.


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## Lightning (3 Apr 2010)

Thats is a lot of people saying that AIB have got the interest wrong. If AIB have really have got it wrong for so many people then the Financial Regulator should be notified.  

Anyway, firstly, are you all calculating interest correctly? This AIB account is full of sneaky T&C's and small print. See bold below on how they calculate the bonus interest.



> *AIB: Online Personal Savings Plan*
> _*2.25%*_
> Note 1: *"Bonus interest of 10% in year 1 of interest earned" which is currently 0.225% if you have made no more than one withdrawal. Other "bonuses" offered in later years.*
> Note 2: Regular monthly lodgements required by standing order plus optional manual topup.
> ...


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## Taxi Driver (4 Apr 2010)

I think AIB are paying the correct interest on these accounts.

You can only earn interest on money you actually have in the account.  For example, if you are putting €1,000 per month into the account, you will have €12,000 in the account at the end of the year.  However, in month 1 you will earn interest on €1,000, in month 2 you will earn interest in €2,000, and so on.  The average balance in the account over the year is €6,000.

Secondly, the OP says the account has been opened for 18 months.  There is no way that 20% bonus interest should be applied.  Bonus interest is applied if regular lodgements are made for 12 months and no more than one withdrawal is made in a period from April of one year to March of the next.  At best an account opened 18 months ago would earn 10% bonus interest if the conditions are met.  A bonus of 20% interest would be earned if the conditions are met until next Mar.

Finally, DIRT will see a reduction of 25% in the amount of interest actually credited to an account.  Earned interest of 1.54% of the current balance sounds about right.

I don't think there is any additional interest due on this account.


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## JoeRoberts (6 Apr 2010)

Checked mine and it looks fine also. Has been calculated correctly every year since it started for me.

I would disagree with fungus - the T&Cs were outlined very clearly ( not in small print ) when I started the product so I never considered anything sneaky about them. Just checked the AIB website and the T&Cs are still plain to see.


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## CorkGuy12 (10 Apr 2010)

Just to echo what has been said later in the thread, I too have an online savings account. Just hit 5 years, so got 50% bonus interest, so a rate of 3.375 for me this year 

However, this is a regular savings account, rather than a lump sum, so interest is calculated daily on the amount you have in there  each day in the year, so you'll never get the quoted 2.25% on what you have in there at the end of March.

I've had no issues with this account for the past 5 years.  (other than the falling interest rate!)


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## MugsGame (12 Apr 2010)

Taxi Driver said:


> Secondly, the OP says the account has been opened for 18 months.  There is no way that 20% bonus interest should be applied.  Bonus interest is applied if regular lodgements are made for 12 months and no more than one withdrawal is made in a period from April of one year to March of the next.  At best an account opened 18 months ago would earn 10% bonus interest if the conditions are met.  A bonus of 20% interest would be earned if the conditions are met until next Mar.



I agree with you on everything else, but the above is incorrect. As you are aware the interest year on this account runs from 1st April to 31st March and this year is also used for the bonus conditions. Assuming the bonus conditions (regular minimum lodgement, at most one withdrawal) are satisfied, then a 10% bonus is paid in the first interest year (ends 31st March 2009 for OP above) and 20% in the second (ends 31st March 2010 for OP).


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