# Current Account paying good interest?



## chidibo (19 Jan 2007)

I see Alliance and Leicester are paying 6.1% interest on current account balances in the UK.  Is there any bank paying a decent rate of interest on current account balances in Ireland?


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## CCOVICH (19 Jan 2007)

See the Best Buys forum for a summary of Irish rates.

Note that there are very good reasons why UK banks pay higher interest.  If you search/browse you will see the topic has been discussed before.


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## ClubMan (19 Jan 2007)

I think the _Financial Best Buys _only covers *deposit *accounts. I'm not aware of many (any?) *current *accounts that offer anything other that marginal interest returns in _Ireland _but I may just be ill informed on this. On the other hand it's not too difficult to operate a high yielding deposit account and a current account and shift money between the two electronically and online in many cases when necessary.


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## CCOVICH (19 Jan 2007)

Sorry-missed the 'current account' part.


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## chidibo (21 Jan 2007)

I had a look around and as predicted rates are pretty bad, and those that are slightly better come with a price.  Here are the interest paying current accounts that I could find. Rates are Gross/CAR.

*********************
National Irish Bank

Prestige     
2.25%
€31.25 fee per quarter

Easy Plus 
1.50%
€18.75 fee per quarter

*********************

AIB

Personal Current Account*
0.5%  €0 - €1000 

Student Plus Account*
0.025%

Junior Saver / Student Account 
1.25% €0 - €999
1.4% €1000 - €63,399
1.5% €63,400 - €126,899 
1.675% / 1.685% €126,900+

*Interest paid quarterly to customers who use AIB's phone or internet banking services at least once during the relevant interest quarter.

*********************
Ulster Bank

uFirst
0.5%
€9 fee per month

Dual Accout
0.01% €0 - €29,999 
0.05% €30,000 - €124,999
0.25% €125,000 +

*********************

If there are any I missed please let me know.  If you work in a bank please pay more interest to your current account customers.


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## cik (22 Jan 2007)

on a related note, is there anywhere where you can compare all the fees on current accounts?
Annual fees, ATM fees etc?


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## CCOVICH (22 Jan 2007)

You will find a survey of current accounts on the Financial Regulator's website.


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## cik (22 Jan 2007)

CCOVICH said:


> You will find a survey of current accounts on the Financial Regulator's website.



that is exactly what I was looking for, thank you


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## ClubMan (6 Feb 2007)

_AIB _have launched a current account paying 4% on balances of €1.5K+ according to this _RTE _report.

AIB introduces higher interest rate account


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## ashambles (6 Feb 2007)

Think you probably meant balances of <1.5k, but still welcome.


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## ClubMan (6 Feb 2007)

Sorry - my mistake. Balances of < €1.5K as you say!


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## MugsGame (6 Feb 2007)

Interesting. Lately AIB have become far more competitive on many fronts -- savings accounts, mortgages, credit cards, free current account banking (for how long though?!) and now this, coupled with one of the best online banking systems. I wonder if they are feeling the pinch from new market entrants?


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## CCOVICH (6 Feb 2007)

MugsGame said:


> free current account banking (for how long though?!)


 
Has there been some indication that this is on the way out?


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## MugsGame (6 Feb 2007)

I'm fairly sure AIB had free current account banking (with certain terms and conditions) a few years ago and removed it, then reintroduced it to incentivise people to use Laser and online banking. I assume it's something they'll revisit periodically, as they have in the past.

Slightly more info on the new AIB current account at their [broken link removed] site.


> The new account, which will be available from 5th March, will pay 4% A.E.R. on balances up to €1,500 to customers with monthly lodgements of €1,500 or more...they can avail of it without incurring additional fixed monthly or quarterly fees.


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## CCOVICH (6 Feb 2007)

Would a salary payment via EFT qualify as a lodgement I wonder?


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## ClubMan (6 Feb 2007)

I presume so and would imagine that the €1.5K monthly lodgement limit is aimed at precisely that - i.e. getting people to have their salary lodged.


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## NHG (6 Feb 2007)

I wonder will it be only on personal a/c's or will it be on business a/c's?


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## demoivre (6 Feb 2007)

ClubMan said:


> I presume so and would imagine that the €1.5K monthly lodgement limit is aimed at precisely that - i.e. getting people to have their salary lodged.



According to AIB's [broken link removed] you will need to lodge *at least *€1500 per month to get the 4%


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## KalEl (6 Feb 2007)

demoivre said:


> According to AIB's [broken link removed] you will need to lodge *at least *€1500 per month to get the 4%


 
This doesn't seem a particularly onerous condition to me?

On the surface it seems like a very positive move.


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## demoivre (6 Feb 2007)

KalEl said:


> This doesn't seem a particularly onerous condition to me?



It might be for some people but the point I'm making is that if you lodge *less *than € 1500 per month you won't benefit from the 4% rate.


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## ClubMan (6 Feb 2007)

demoivre said:


> According to AIB's [broken link removed] you will need to lodge *at least *€1500 per month to get the 4%


That's what I meant by "limit" - a *lower *limit.


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## demoivre (7 Feb 2007)

ClubMan said:


> That's what I meant by "limit" - a *lower *limit.



Yep, got ya, I misinterpreted what you said - sorry.


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## triona (7 Feb 2007)

Can anyone explain how the interest would be calculated? I get more that €1500 lodged into my AIB account every month but by the end of the month I have close to zero.


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## KalEl (7 Feb 2007)

triona said:


> Can anyone explain how the interest would be calculated? I get more that €1500 lodged into my AIB account every month but by the end of the month I have close to zero.


 
It would be the same as lodging 1500 into a savings account and then gradually whittling that down I'd imagine...you're earning 4% pa on whatevers in there


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## ClubMan (7 Feb 2007)

The terms & conditions of the account should clarify - I'd imagine that they calculate interest daily on the cleared balance (e.g. c. 4.5% / 365 of the daily balance)?


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## Darando (7 Feb 2007)

Still better than nothing I suppose!!! Its at least a current account that is heading in the right direction. Hope that there are no "other" conditions such as minimum balance that needs to be maintained etc.. and that it is also exempt from fees. Will be interesting to see.


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## gearoidmm (8 Feb 2007)

demoivre said:


> It might be for some people but the point I'm making is that if you lodge *less *than € 1500 per month you won't benefit from the 4% rate.



I think that if you're lodging less than 1500 a month (ie 16,000/year after tax) into your current account, you're more concerned about how you can live on that rather than what interest rate you are getting - it would be spent so fast that it wouldn't matter anyway


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## Sarn (8 Feb 2007)

Think I'll be closing my BOI current account when this kicks in (and my SSIA  with them finishes) and opening one of these. 4% on a reducing balance is better than almost nothing from BOI. 

Hopefully a few more offerings from other banks will appear soon.


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## qingdao (8 Feb 2007)

Just to clarify this..

From the release it says
The new account, which will be available from 5th March, will pay 4% A.E.R. on balances up to €1,500 to customers with monthly lodgements of €1,500 or more.


So does this mean that even if you have the regular deposits of 1500 and a balance of 10000+, you'll only get interest on the 1500. So the max it can be worth to you is 60 euro/ year in interest?

better than nothing..but could result in people leaving large sums in their current account thinking their getting interest on it all when they are not.

If my reading of it is wrong please correct me.


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## MugsGame (8 Feb 2007)

Correct. It's a nice bonus but it wouldn't be something I'd move banks over if I was otherwise happy with the service.


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## ClubMan (8 Feb 2007)

I agree but some people would move banks just to save that amount on charges so they might move to gain €60 in interest (€48 after _DIRT_)! Wouldn't bother myself. And some of the people who get very exercised about bank charges of these amounts would be better off, for example, switching to another more competitive mortgage or unsecured loan lender in order to save much more.


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## KalEl (8 Feb 2007)

Well, the way I see it AIB are going to pay the government levy on my credit and laser cards...nothing spectacular but better than a kick in the unspeakable!


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## paddi22 (8 Feb 2007)

Its a good offer from AIB. I find them a great bank at the moment. There's no charges on the current account due to paying bills online. the 4% current interest is a bonus and the two saving accounts are very handy. I also find their online banking is fantastic.


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## ClubMan (8 Feb 2007)

Yeah - interest in a current account is a bonus but other banks offer transaction fee free banking and useful online services. I'm with _PTSB _and they fit this particular bill. Personally I would not bother switching for marginal interest on my current account funds.


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## chidibo (8 Feb 2007)

Do you think this thread on Askaboutmoney.com had anything to do with AIB's decision to pay 4% interest on their current account?


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## ClubMan (8 Feb 2007)

I doubt it myself.


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## KalEl (8 Feb 2007)

chidibo said:


> Do you think this thread on Askaboutmoney.com had anything to do with AIB's decision to pay 4% interest on their current account?


 
You've got to admit...it's a great piece of marketing.
The perception will be they're paying 4% on current accounts.
The reality is an absolute max of €48 net to each customer ; the real figure will be far less in most cases.


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## GreatDane (4 Mar 2007)

*AIB to pay up to 4% pa Interest on Current Accounts*

Hi

Adverts appearing in the Newspapers today

- suggests new Current Account from AIB, only available through their branches from this Monday, paying up to 4% AER (subject to minimum lodgement of €1,500 per month and I think, maximum of €1,500 per month earning interest)

Should be interesting ....

Regards

G>


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## irishpancake (7 Mar 2007)

Just got on to AIB regarding the new Current account. 

I can transfer my existing AIB current account with no problems, no change of account number, no new conditions, still qualify for transaction-free banking, once the conditions are met, can retain my existing OD arrangement, continue on-line banking as before.

The agent offered to transfer my account there and then, but i am waiting to see, as I was going to switch to Ulster. I still prefer the user-friendly AIB on-line facilities, which are getting better all the time.

Probably won't switch now, as I can now also get 4% Interest, calculated daily, on amounts up to €1500 p/month, which could work out at €60 p/year  (€48 nett of DIRT).


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