# Rabo leaving it late....to announce new rate



## Jethro Tull (18 Dec 2007)

Just mailed rabo about their interest rates post 31/12/07. I got the following reply:

Dear Mr. xxxxxx,
At present a new rate of interest for 2008 has not yet been announced. Our current interest rates are as follows; 5% on amounts up to €10,000.00 and 3.75% for any balance up to €1 million. Any changes in rates will be announced before December 31st. 
If you have any other queries, give us a call on 1850 88 22 44 (or from abroad +353 1 6599731). Our fax number is +353 1 6599760. We’re open from 8am – 8pm Monday to Friday. Our freepost address is: Rabodirect, Freepost F4006, PO Box 10152, Dublin 1.
Kind regards,
xxxxx xxxxxx
Customer Contact Centre

They're leaving it late to 'decide', its the 18th of December now. Surely they're budget and planning for 2008 is long done and dusted?


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## ClubMan (18 Dec 2007)

*Re: Rabo leaving it late....*

You could always move it into their 1 month term deposit at 4.6% gross _CAR _if you are worried about the currently imminent drop from 5% to 3.75% or if/when that takes effect on January 1st. I think you can do it all online?


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## Jethro Tull (18 Dec 2007)

*Re: Rabo leaving it late....*

Not that I'm worried really (I'll move my funds elsewhere if I can get a better deal, I owe no bank any loyalty) just that I think its ridiculous that they STILL haven't announced whats gonna happen. despite the fact there aren't many working days left before the new year.


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## camlin90 (18 Dec 2007)

*Re: Rabo leaving it late....*

Yes, they need to make up their mind soon. I'll be transferring my full balance to First Active by EFT on 28 December if it is not announced by then. 
No reason why anyone should have money on deposit at ECB - 0.25% in the current competitive market.


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## domadd (18 Dec 2007)

*Re: Rabo leaving it late....*

Ditto me also.  Dec 28th transfer.


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## sunnyside (18 Dec 2007)

*Re: Rabo leaving it late....*

how do you transfer by eft from rabo to first active,..do yo uhave to have somethgin set up on the rabop site or is the facility there and you just have to  click on it?

i know the first step would be opening up an account in first active. how long have they said their rate will apply?

thanks


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## camlin90 (18 Dec 2007)

*Re: Rabo leaving it late....*

FA's E Saver is paying 5.22% on balances up to 15000.
That is already higher than Rabo's 5% - and Rabo only pay that on balances up to 10000.

Of course, there is a danger that if Rabo drop their rate FA will follow.

You should be able to set up a payee on the Rabo website, entering your FA account details. I must remember to do this soon in case there are any hitches nearer the time.


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## sunnyside (18 Dec 2007)

*Re: Rabo leaving it late....*

i have spent the past 15mins on the first active site - hmmmmm,.....i am going to go to a branch to open up an a/c. less hasel i think.

i agree, 5.22 wins out anyway. Laziness is the only thing stopping me sortign it out, i am all enthused, tomorrow it begins, why be on the hook to rabo all the time, the op is right,..this tardiness by rabo shows a bit of a disregard for its customers,..i think i'll switch anyway.


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## z105 (18 Dec 2007)

*Re: Rabo leaving it late....*



> Ditto me also. Dec 28th transfer.


 
Ditto me too, Rabobank, speak now or forever hold your tongue !


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## Lossy (19 Dec 2007)

*Re: Rabo leaving it late....*

My guess is that Rabo will leave their rate at 5% until March at least. If you think of it for the past 1-2 years the ecb was heading in only one direction and that was up and the Rabo savings rate has followed. Things are a little unsure now. Some so-called experts are saying it will go up early next year and some are saying it will go down. This uncertainty is what I think is causing Rabo to show their cards late. Why not wait till the 1st Jan. and see.


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## ClubMan (19 Dec 2007)

*Re: Rabo leaving it late....*



Lossy said:


> My guess is that Rabo will leave their rate at 5% until March at least.


Not according to their website - it will fall to 3.75% unless they announce something soon.


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## Jethro Tull (19 Dec 2007)

*Re: Rabo leaving it late....*

1 Month Term deposit has dropped to 4.35%. Surely answers the question?

[broken link removed]


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## Lossy (19 Dec 2007)

*Re: Rabo leaving it late....*



ClubMan said:


> Not according to their website - it will fall to 3.75% unless they announce something soon.



I appreciate that Clubman. Imagine if everyones savings did drop to 3.75%. It would be suicide for Rabo wouldnt it?


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## ClubMan (19 Dec 2007)

*Re: Rabo leaving it late....*



ClubMan said:


> You could always move it into their 1 month term deposit at 4.6% gross _CAR _if you are worried about the currently imminent drop from 5% to 3.75% or if/when that takes effect on January 1st. I think you can do it all online?





Jethro Tull said:


> 1 Month Term deposit has dropped to 4.35%. Surely answers the question?
> 
> [broken link removed]


I thought that they were offering 4.6% yesterday! Maybe I misread it.


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## ClubMan (19 Dec 2007)

*Re: Rabo leaving it late....*



Lossy said:


> I appreciate that Clubman. Imagine if everyones savings did drop to 3.75%. It would be suicide for Rabo wouldnt it?


Not necessarily - inertia and all that...


sunnyside said:


> i have spent the past 15mins on the first active site - hmmmmm,.....i am going to go to a branch to open up an a/c. less hasel i think.
> 
> i agree, 5.22 wins out anyway. Laziness is the only thing stopping me sortign it out, i am all enthused, tomorrow it begins, why be on the hook to rabo all the time, the op is right,..this tardiness by rabo shows a bit of a disregard for its customers,..i think i'll switch anyway.


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## Jethro Tull (19 Dec 2007)

*Re: Rabo leaving it late....*



ClubMan said:


> I thought that they were offering 4.6% yesterday! Maybe I misread it.


 
AFAIK they were! I checked it after you posted!


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## Jethro Tull (19 Dec 2007)

*Re: Rabo leaving it late....*

Btw on the best buys forum, to open the FA e-saver the advice was to open any FA product in branch then open the e-saver. Is it haslle to open a current account? Do they just require the usual proof of address and copy of passport etc? I would mail them but i have done so on a few occasions over the last 6 months or so and not recieved one reply.


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## ClubMan (19 Dec 2007)

*Re: Rabo leaving it late....*

I opened the _eSaver _by online/post without opening any other _FA _account.


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## Jethro Tull (19 Dec 2007)

*Re: Rabo leaving it late....*

I tried that a few weeks ago and no response from them.


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## Lossy (19 Dec 2007)

*Re: Rabo leaving it late....*



Jethro Tull said:


> I tried that a few weeks ago and no response from them.



Try ringing                    their eSavings customer support number: 1890 252 229

btw, i think their 5.22% rate is guaranteed for most of 2008


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## ClubMan (19 Dec 2007)

*Re: Rabo leaving it late....*



Lossy said:


> btw, i think their 5.22% rate is guaranteed for most of 2008


Are you sure? I don't remember any specific rate guarantee on that account.


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## Lossy (19 Dec 2007)

*Re: Rabo leaving it late....*



ClubMan said:


> Are you sure? I don't remember any specific rate guarantee on that account.



Not sure but here is a post 
*
" Re: First Active e-savings account* 
A FA adviser told me the rate syands until 2009 & will be adjusted then! "

by Emoclew from this thread: http://www.askaboutmoney.com/showthread.php?t=58818&page=19


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## queenlex (19 Dec 2007)

*Rabo new rate tomorrow*

I have just been on to Rabo and they told me they are announcing their new online savings rate tomorrow FYI.


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## iggy (19 Dec 2007)

*Re: Rabo leaving it late....*



ClubMan said:


> I opened the _eSaver _by online/post without opening any other _FA _account.


Me too...no problems at all.


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## RaboDirect (20 Dec 2007)

Ireland’s only AAA rated deposit taker, RaboDirect,  has announced rates effective from 1 January 2008 for demand and term savings accounts and is also removing the tiered structure for demand accounts. Balances from €1 to €1million will now uniformly attract a variable rate of 4.30% which is 0.30% higher than the current ECB rate. Demand account balances in excess of €1million will attract a variable rate of 3.95%. Previously demand account sums in excess of €10,000 attracted a 3.75% variable rate while sums under €10,000 attracted a variable rate of 5.0%. As always, there are no lodgement or withdrawal restrictions. For term accounts, RaboDirect is also offering 4.35% for 1 month notice and 4.50% for 3 months with a minimum deposit is only €500 and no upper limit. Accounts are not subject to bank charges and term deposits can be rolled over automatically as required.


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## Sunny (20 Dec 2007)

See you Rabo. Nice dealing with you!!


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## wirelessdude (20 Dec 2007)

think there will be alot of money being moved from jan 1st


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## Lossy (20 Dec 2007)

YIKES!

Those FirstActive accounts will be getting fat!


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## Welfarite (20 Dec 2007)

Lossy said:


> YIKES!
> 
> Those FirstActive accounts will be getting fat!


 But will First Active follow Rabo's lead on rates?


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## Lossy (20 Dec 2007)

Welfarite said:


> But will First Active follow Rabo's lead on rates?


 
Yeah, the next few months will be very interesting!


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## gianni (20 Dec 2007)

hmm... time to dig out my rabo digipass, methinks....


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## GeneralZod (20 Dec 2007)

Lossy said:


> Yeah, the next few months will be very interesting!



It will be a case of all hands to the pumps. We're going to have to be more proactive as all the banks try to screw us.


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## Nige (20 Dec 2007)

FA here I come.


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## Lossy (20 Dec 2007)

On the other hand those who have deposited €22729 or more on-demand with Rabo will actually receive more interest compared to the old rates! 

Gee.... I have little to do this morning!


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## ClubMan (20 Dec 2007)

GeneralZod said:


> It will be a case of all hands to the pumps. We're going to have to be more proactive as all the banks try to screw us.


They're not screwing anybody here. _Rabo _have announced their new rate. It's lower than what's on offer elsewhere. People can move their money elsewhere if they choose. Nothing untoward or mysterious!


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## camel (20 Dec 2007)

Adios Rabo


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## Jethro Tull (20 Dec 2007)

Hopefully my FA account details will be at home this weekend so.....

See ya Rabo!


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## GeneralZod (20 Dec 2007)

ClubMan said:


> They're not screwing anybody here.



So it's not a rip-off either then?  

Joking aside many of the Banks and not just RaboDirect (until now) seem to be being coy about what their rates will be in 2008.


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## ClubMan (20 Dec 2007)

GeneralZod said:


> So it's not a rip-off either then?


No - of course not.


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## landlord (20 Dec 2007)

I hope some of the Rabo execs are reading this.......maybe they will reconsider. 
Well "just to keep you on your toes" (As mentioned in the recorded announcment when we customers call you on the phone)
I am switching too.!!!
FA here I come  !!!


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## RaboDirect (20 Dec 2007)

*New Rate Structure*

Our standard variable rate is 3.75% which we have been quite clear about all year. By moving to 4.30% from Jan 1 (30 points over the ECB rate) we are increasing this by 0.55%. 

Why have we reduced the 5% rate? We could not offer 5% up to €1million for money on demand. That would be totally unrealistic and unprofitable in the extreme. If we had kept the 5% rate we would have had to offer a lower rate on amounts over €10k as we do now. The majority of our customers have balances in excess of €20k so the drop to 3.75% isn't as attractive as it could be. So for lump sum deposits the 4.30% flat rate up to €1 million is quite competitive. The money is on demand, there are no restrictions on deposits or withdrawals (up to €1m) and it comes with a AAA-rating. The rate structure is simple and transparent. 

As for remarks about rip-off - we are paying above the ECB rate for money on demand so how we can be accused of ripping people off is beyond us. Take a look at rates that the other banks pay on demand money (not the loss leading regular saver products) and you'll see rates of *less* than 1.0% - this is where they make a fortune. 

RaboDirect


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## ClubMan (20 Dec 2007)

*Re: New Rate Structure*



RaboDirect said:


> Our standard variable rate is 3.75% which we have been quite clear about all year.


Actually I never found this clear. The website carried two rates: 5% on up to €10K and 3.75% on the balance. It also originally mentioned that the standard variable rate would apply from january 2008. It never *explictly *stated that the standard variable rate was the 3.75% one as far as I could see anyway.


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## GeneralZod (20 Dec 2007)

*Re: New Rate Structure*



RaboDirect said:


> As for remarks about rip-off



RaboDirect, I am not accusing you of a rip-off. That was a light hearted remark based on the ongoing argument about the use of that term on AAM. 

I realise you rationally choose to cater for the vast bulk of customers with greater inertia to maximise your returns and not the long tail of uber-switchers that populate AAM.


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## DrMoriarty (20 Dec 2007)

This must be RaboDirect's new _"Jump Ship!" _promotion... 

[broken link removed]
_Are you thinking what I'm thinking...?_


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## Sunny (20 Dec 2007)

*Re: New Rate Structure*



RaboDirect said:


> As for remarks about rip-off - we are paying above the ECB rate for money on demand so how we can be accused of ripping people off is beyond us. Take a look at rates that the other banks pay on demand money (not the loss leading regular saver products) and you'll see rates of *less* than 1.0% - this is where they make a fortune.
> 
> RaboDirect


 
The remarks about being a rip off were said in jest I suspect. You are free to set your rates at whatever level you see fit and I think it should be pointed out that 4.3% is still one of the best rates on the market. However, I am getting 4.30 for same day access to my money (which I don't have with Rabo by the time I transfer it) from another bank. I don't think anybody is having a go at Rabo but it is good to see that after years of banks taking advantage of peoples inertia with regard to changing accounts, that people are now chasing the best deals out there.


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## landlord (20 Dec 2007)

*Re: New Rate Structure*



RaboDirect said:


> Our standard variable rate is 3.75% which we have been quite clear about all year. By moving to 4.30% from Jan 1 (30 points over the ECB rate) we are increasing this by 0.55%.
> 
> Why have we reduced the 5% rate? We could not offer 5% up to €1million for money on demand. That would be totally unrealistic and unprofitable in the extreme. If we had kept the 5% rate we would have had to offer a lower rate on amounts over €10k as we do now. The majority of our customers have balances in excess of €20k so the drop to 3.75% isn't as attractive as it could be. So for lump sum deposits the 4.30% flat rate up to €1 million is quite competitive. The money is on demand, there are no restrictions on deposits or withdrawals (up to €1m) and it comes with a AAA-rating. The rate structure is simple and transparent.
> 
> ...


 
Thanks for the justification, however the kind of savvy investor (that you will find on AAM for example) will easily be able to better that rate. Switching is so easy these days most will leave Rabo quicker than the blink of an eye.


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## mollser (20 Dec 2007)

Kind disagree with most of the comments on here. 

Rabo has stated, and I've no reason to not believe this, that the vast majority of savers have >20k on deposit with them.  This change actually reflects an increase in interest for the year for people with deposits of >€25k, granted of only €12 for €20k pre DIRT, but its still an increase for majority of savers.

Also i can't see a mass panic of people extracting money from them if, at this stage, the vast majority of savers haven't already tried to maximise their returns from other institutions by saving only 10k with rabo and more elsewhere. (would love to know how many just have €10k on deposit with them?)

I my eyes my €5k is coming out from NRock as this rate is very close to theirs for what I would assume is a lot less of the risk.

And i have no ties whatsoever with Rabo, just introducing a bit of balance!


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## mollser (20 Dec 2007)

<edit> just noticed FA is 4.33% for everything over 15k, not sure if Rabo will lose too much business from people chasing 0.03%!


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## Nemesis (20 Dec 2007)

To be fair, 4.3% is not that bad when you consider everything. For anyone with the maximum in First Active to get the 5.22% (and who don't want the whole balance to drop back to 4.33%) or the 5% on the 7 day notice account with AIB, this is pretty much as good as it gets. Northern Rock's rate of 4.5% is better of course but since so many have ruled that out as an option, why should Rabo seek to better it?

People can switch to First Active but for amounts over 15,000 they'll have to forgo the 5.22% if they wish to get an extra 0.03% on the whole lot.


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## Towger (20 Dec 2007)

mollser said:


> I my eyes my €5k is coming out from NRock as this rate is very close to theirs for what I would assume is a lot less of the risk.




NR are giving an addition .5% for the next couple of months to customers who stayed with them. Making a grand total of 5%, if my maths are correct.


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## Luternau (20 Dec 2007)

*Re: New Rate Structure*



Sunny said:


> However, I am getting 4.30 for same day access to my money .



Mind me asking where?  Am with Anglo for years have their 7day which is paying me 4.1%, but slow to transfer money -cant transfer directly to third party- has to go to an account in my name first.


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## Nemesis (20 Dec 2007)

Towger said:


> NR are giving an addition .5% for the next couple of months to customers who stayed with them. Making a grand total of 5%, if my maths are correct.



For people who regard that as little more than a trap to catch their savings when the UK government defaults on its guarantees, that's just too big of a risk to take


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## landlord (20 Dec 2007)

Just a reminder NIB are still offering an ECB tracker saving account at ECB + 0.5% which is 4.5% currently from 0 to 50,000 Euros, so after you have maximised your first active account and your partners you might want to consder this. It is instant access too. I am sure others can give examples of other banks offering better rates then Rabo too !!


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## Sunny (20 Dec 2007)

*Re: New Rate Structure*



Luternau said:


> Mind me asking where? Am with Anglo for years have their 7day which is paying me 4.1%, but slow to transfer money -cant transfer directly to third party- has to go to an account in my name first.


 
Ulster bank e-saving account. I tell a lie as I just checked and it is at 4.27 but you can add/witdraw whenever you like with same day transfer to my current account. I presume you can transfer to third party but have never done it. The rate is valid for balances fro 1-500,000 euro.


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## homer911 (20 Dec 2007)

Get past the hysteria people, and (in my opinion) the ill-considered posting by Rabodirect. Personally I'm now going to consolidate my own account with that of my wife plus our joint account to maximise return. Watch this space - I'm sure other lenders will sit back, rake in the cash and cut their rates. Just because Rabo have opted to be the first, doesnt mean others wont follow..

I'm prepared to give them the benefit for a while and see what others do -they have been ahead of the game up to now


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## cork (20 Dec 2007)

landlord said:


> Just a reminder NIB are still offering an ECB tracker saving account at ECB + 0.5% which is 4.5% currently from 0 to 50,000 Euros, so after you have maximised your first active account and your partners you might want to consder this. It is instant access too. I am sure others can give examples of other banks offering better rates then Rabo too !!


 
Rabo probably don't realise that people may simply switch, they probably have believe many won't be as savy with regards to rates.


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## Lionheart (20 Dec 2007)

It will be very interesting to see how Rabobank market this change in their rates.

I guess that they will only refer to the increase in their standard rate from 3.75% to 4.3%.  Will there be any mention of the reduction in the rate (by an even greater amount) for deposits under €10k?  

I have great respect for Rabobank and I hope they will be straight talking and upfront with how the change will effect the small saver.


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## domadd (20 Dec 2007)

Thanks Rabo. I certainly do not think you are ripping anyone off. Your rate suited me in 2007 and now that I know your 2008 deposit rate I will reconsider where my money will lie during the next year. I am disappointed that the 5%  on the first 10000 rate has been discontinued and will be actively seeking a better home for my savings. Its now up to the other players in the Cash Deposits Market to make a play for new business.


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## Labguy (20 Dec 2007)

I think people would be well advised to check the credit worthiness of Rabo compared to the other banks in business in Ireland.  I understand it scores well ahead of the opposition with Moody etc.

Not to be treated lightly after the Northern rock debacle!


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## askU (20 Dec 2007)

Rabo-the 'straight talking' online bank !!!!!


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## z101 (20 Dec 2007)

Dont Bank of Ireland have a bond that runs 3 months at a time and you can withdraw as you please. You have to start with 25k though.

I think it is a shame for small savers that Rabo have made this decision. If most of their clients have in excess of 20k, as Rabo claims above, then why not just leave the 5%<10k rate and up the >10k rate as this keeps all happy. Me thinks he's spinning..


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## ClubMan (20 Dec 2007)

Ceatharlach said:


> If most of their clients have in excess of 20k, as Rabo claims above, then why not just leave the 5%<10k rate and up the >10k rate as this keeps all happy. Me thinks he's spinning..


As _Lossy _pointed out earlier those with c. €23K+ on deposit will actually be better off overall with the new rate regime.


Lossy said:


> On the other hand those who have deposited €22729 or more on-demand with Rabo will actually receive more interest compared to the old rates!
> 
> Gee.... I have little to do this morning!


And why are they doing it? Because, for one thing, they are a bank whose primary obligation it is to maximise returns for shareholders I suppose


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## queenlex (21 Dec 2007)

Nemesis said:


> For people who regard that as little more than a trap to catch their savings when the UK government defaults on its guarantees, that's just too big of a risk to take


 
There is absolutely no grounds for believing the UK government will default I've never heard this mentioned???  But I will not be putting as much money as planned into rabo now as I dont believe its a good rate especially when you can stick it in a few other banks bit by bit and get 7%!  

Never mind the FA and NR rates.


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## Godfather (21 Dec 2007)

4.3% = Goodbye Rabodirect from a straight talking customer!

P.S.: Hi guys, I wish you all a Happy Christmas! (including Rabo despite such a low interest rate)


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## Nemesis (21 Dec 2007)

ClubMan said:


> And why are they doing it? Because, for one thing, they are a bank whose primary obligation it is to maximise returns for shareholders I suppose



This is a very important point that many here seem to be forgetting. Rabo are in this to make a profit (and nothing wrong with that). They're not going to pay any more than they absolutely have to or raise rates just to make AAM users say nice things about them.



queenlex said:


> There is absolutely no grounds for believing the UK government will default I've never heard this mentioned???



Just in case there's any confusion, I agree. But it appears some people still have their doubts.


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## Sunny (21 Dec 2007)

Nemesis said:


> This is a very important point that many here seem to be forgetting. Rabo are in this to make a profit (and nothing wrong with that). They're not going to pay any more than they absolutely have to or raise rates just to make AAM users say nice things about them.


 
I don't think anyone is forgetting that. People here aren't stupid. Rabo have done wonders for the savings market in this country after years of being ripped off (yes ripped off) by the cartel of Irish banks that operated here. However, the fact remains that people don't owe banks any sort of loyalty. If they can get a better rate than now offered, they should move their money. If not, stay where you are. Its as simple as that. I don't think people are having 'a go' at Rabo for making a business decision. They are just pointing out the realities of the situation and that is that a better rate can probably be found elsewhere for some people. I am sure Rabo understand it is nothing personal!!!!


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## ClubMan (21 Dec 2007)

Sunny said:


> If they can get a better rate than now offered, they should move their money. If not, stay where you are. Its as simple as that.


Not necessarily - some people will make do with lower rates for all sorts of reasons: inertia/laziness, lack of awareness that there are better offers, satisfaction with other aspects of their existing bank's (banks') services etc. Not everybody shops around on "price" alone. More should though in my opinion.


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## Lossy (21 Dec 2007)

ClubMan said:


> Not necessarily - some people will make do with lower rates for all sorts of reasons: inertia/laziness, lack of awareness that there are better offers, satisfaction with other aspects of their existing bank's (banks') services etc. Not everybody shops around on "price" alone. More should though in my opinion.


 
Rabo's (S&P) AAA rating would be another reason why some people will stay. The only other bank in Ireland that comes close is UlsterBank with an AA rating with all the rest having a rating between A and AA-. Northern Rock recently went from A+ to A.

[broken link removed]


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## Welfarite (21 Dec 2007)

Sunny said:


> I am sure Rabo understand it is nothing personal!!!!



So a bank really does have feelings!!!!


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## bungaloid (21 Dec 2007)

Lossy said:


> Rabo's (S&P) AAA rating would be another reason why some people will stay. The only other bank in Ireland that comes close is UlsterBank with an AA rating with all the rest having a rating between A and AA-. Northern Rock recently went from A+ to A.
> 
> [broken link removed]



for small deposits (below the government guarantee) the correct strategy is of course to be a "rate tart" as clubman advocates.

however for anyone with large cash deposits lossy's remark is critical factor.

think of the rate offered by the bank as 
rate = ECB rate + credit spread​    then a large credit spread reflects the banks need for cash and the funding rate available to it on the interbank or bond markets.

if you invest your life savings in the bank with the largest credit spread ("rate tart" strategy) then you are effectively investing in the bank with the highest probability of default. most people would not knowingly choose not to do this.


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## Lossy (21 Dec 2007)

If I had a big wad of dosh (which I certainly dont have) and I wanted to save rather than invest I would be splitting off a few batches of 15-20K. I'd be a right "rate tart" with them and lob the rest in Rabo.

I better stop now before I start sounding like a Rabo employee!


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## twofor1 (21 Dec 2007)

Does anyone know what guarantees come with the new rate of 4.3% ? Rabo state earlier in this tread that it is currently .3% above ECB, I presume this means the rate being offered is ECB + .3% ( it could be viewed as 4.3% regardless of ECB). Also either way how long is this rate available for ? Their website just states 4.3% from 01/08. Thanks.


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## ClubMan (21 Dec 2007)

I don't think that there is any rate guarantee.


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## minion (23 Dec 2007)

Bye bye rabo.  I hate your Fob thing anyway.

We have 3 Rabo accounts with €10K each in them.  Time to spread it somewhere else.


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## TSThomas (23 Dec 2007)

I don't get the "nah nah nah, nah nah nah" attitude of some of those "leaving". Are we still in primary school? It's just a bank...

That said, Rabo's usually been a bit quicker than others at announcing rate changes, wonder what can be expected from others in January...


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## pugwall (24 Dec 2007)

The AAA rating is the deal maker for me. My cash will be staying put!


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## Sunny (24 Dec 2007)

bungaloid said:


> think of the rate offered by the bank as
> rate = ECB rate + credit spread​
> then a large credit spread reflects the banks need for cash and the funding rate available to it on the interbank or bond markets.
> 
> if you invest your life savings in the bank with the largest credit spread ("rate tart" strategy) then you are effectively investing in the bank with the highest probability of default. most people would not knowingly choose not to do this.


 
What???  

The rate offered by banks to depositors tells you nothing about a banks probability of default. Rabo are offering 5% at the moment and that  is alot higher than what Bank of Ireland or AIB offer but it doesn't mean they are more likely to default.


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## z101 (24 Dec 2007)

Rabo suggested most of their clients have over 20K. If the small saver is of such a minority then why adjust the rate.


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## Labguy (24 Dec 2007)

I suspect Lossy is right.   At present you need a secure bank!

Don't expose yourself to problems for a small percentage gain.


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## Lossy (27 Dec 2007)

Ceatharlach said:


> Rabo suggested most of their clients have over 20K. If the small saver is of such a minority then why adjust the rate.


 
Maybe they are fed up with sending out multiple digipass thingys to those who have more than 20k and are opening more than one account.


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## sapmanie (1 Jan 2008)

From the 1st of January 2008, you'll get a rate of 4.3% on balances up to 1 million EUR and a rate of 3.95% on balances over 1 million EUR. 

It was 5% for balances <=10,000 last year  That's a pretty hefty drop in rates methinks.


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## TSThomas (1 Jan 2008)

[broken link removed]

In fact, at RaboDirect if you have a deposit €23,000 or more, you'll be better off in terms of the interest you'll earn for 2008!


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## camlin90 (1 Jan 2008)

If you have €23K or more you can still do better by splitting it between higher interest accounts such as the First Active E-Saver (5.22%) and the AIB Online 7 day account (5%)

€150 per year better, in fact.

People should be voting with their feet (and their money) - inertia is the banks' best friend.
I am doing my bit - all my Rabo capital deposit has gone to FA and the interest payment I received today has also already been transferred to FA.

Unfortunately most money probably will stay at Rabo despite the drop.
Most people will not be aware of the rate change anyway - they aren't exactly shouting it from the rooftops - website still bangs on about 5% and I haven't heard any press ads announcing the new rate.


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## MysticX (1 Jan 2008)

> If you have €23K or more you can still do better by splitting it between higher interest accounts such as the First Active E-Saver (5.22%) and the AIB Online 7 day account (5%)
> 
> €150 per year better, in fact.
> 
> People should be voting with their feet (and their money) - inertia is the banks' best friend.


Was thinking the exact same thing as you John.

Another interesting note is that you can still earn a tiny bit more (.03%: 4.33% versus 4.3%) on savings of 1 million EUR with FA than with Rabo. So unless your extremely loaded with cash and want to keep it in the one place, Rabo wouldn't be the first port of call. FA also has the advantage of people staying with them due to the 5.22% on the first 15K.

Logic also dictates to spread out savings as:
-Take advantage of banded rates to max returns
-By spreading it out between different banks you minimise risk(there's a 20K upper limit on the deposit protection scheme I believe?... so more accounts means more protection for the sum total of your savings) 

Yep so the only conclusion one can draw is that Rabo is heavily relying on customer inertia.
I think the general feeling on the forum is one of disappointment with Rabo. FA and even AIB have given experienced savers pause for thought on Rabo, and there's even some 4.5% accounts out there(granted not as flexible, though for the sums Rabo is aiming at if you're loaded by that much.....). 
Since Rabo is a virtual bank you'd expect it to offer more attractive rates than brick and mortar banks.. hence the disappointment.

To Rabo's credit they are one of the easiest banks to get up and running with and brought along innovative security and currently have an acceptable interest rate, but for the experienced saver they have probably moved from a primary to tertiary place for deposits.


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## ashambles (1 Jan 2008)

Rabo have increased the rates for the majority of their customers - so anyone who didn't move before won't be moving now. Certainly not for 0.03% (some with a million on deposit isn't going to be fussed about 300 euro). The other banks are playing catch up so they've no choice but to beat Rabo's rate - and as such Rabo would be commercially silly to try to set the highest rate. 

Banding is annoying - FA's banding took ages to work out in a thread here last year. Trying to take advantage of banding with multiple accounts is also annoying - and possibly distracts people from taking long term investment decisions with their savings.

I doubt it make long term sense to band anyway, at least in the previous Rabo and current FA way of having a better rate for less money. A bank would prefer a single customer with 100k than 10 with 10k. The whole thing was to grab SSIA customers, probably with the intention of selling them loans later. 

My guess is that Rabo has discovered these 10k customers have little intention of using that revolving credit facility thing they were advertising, so don't mind too much if they lose them.

On another point Rabo have better deposit protection than most, being Dutch they guarantee the first 20k and 90% of the next 20k.


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## ClubMan (1 Jan 2008)

ashambles said:


> Rabo have increased the rates for the majority of their customers - so anyone who didn't move before won't be moving now.


I have moved. I didn't have €23K+ with them in a single account though. Left €1 in each account just to keep them open.


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## Godfather (2 Jan 2008)

It would be great if at least their rate would at least match the 4.50% of many other lump sums accounts... But probably they calculated that the AAA rating "pays" the difference of 0.2%... Because of this then I prefer to spread my savings to other accounts for the moment...


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## Carmel (2 Jan 2008)

Just want to say thanks for the info posted here. My husband and I have 10K each with Rabo. We will look into moving 15K to First Active now. 

C


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## GeneralZod (2 Jan 2008)

Carmel said:


> We will look into moving 15K to First Active now.



AIB have a on-line 7 day notice account paying 5% on balances up to €10k that could take the other €5k and leave room to save another €5k at 5%.


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## ClubMan (2 Jan 2008)

Carmel said:


> Just want to say thanks for the info posted here. My husband and I have 10K each with Rabo. We will look into moving 15K to First Active now.
> 
> C


Why not just open two accounts - one in each of your names?


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