AIB Regular Saver: How does it work??

You are correct, You earn 3% interest on the ENTIRE €12K for the twelfth month only.

baj2005 said:
Can somebody please verify my figures above ?
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There are some assumptions about when AIB calculate your interest etc but in principle you figures are correct.

baj2005 said:
If what they are saying is true then it would make sense to have your money deposited in say Bunq getting 2.46% and have it feed in every month into AIB savings account and make interest on the double !!
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You'd want to have precious little to be doing with your time:

Assume you start the year with €12,000. Month 1 put €1k in the AIB nonsense and put €11k in BUNQ at 2.64%
Month 2 transfer €1k from BUNQ to AIB, and do the same each subsequent month.
In month 12 there is €12k in AIB and €0 in BUNQ.
AIB will pay you €195 and BUNQ will pay you €145, a total of €340. DIRT is €112 so you get €228 into your haand

Alternatively:

Walk past AIB's door and just put €12,000 into BUNQ at 2.64%. At the end of the year BUNQ will pay you €317, DIRT is €104 so you get €212 into your hand.

Is it really worth all that carry on for an extra €16 ?

Or, seeing as this is dependent on you timing your €12k up for 12 months (or longer), why not look at term rates. It is possible at present to do better.

It's also worth looking at PTSB's Regular Saver, which is a far superior product. Although the rate is 2.5% rather than 3%, you can carry on building up the balance until you reach €49,999.99 and earn the premium rate on the entire balance, without the "back to zero" nonsense that AIB impose.
 
Thanks Freelance !
Out of curiosity, why did you choose Bunq at 2.64% as opposed to say Raisin at a higher rate ? Liquidity I assume ?

I’m looking around for my mum who will soon get the cash from my late father’s estate and want to choose the best term deposit bank for her. She’s 79 so won’t pay DIRT. I was originally looking at AIB 2 year fixed at 3.02% but maybe something like Raisin would be better ?

You seem to have your head well screwed on so any advice would be greatly appreciated.

Thanks, Alan

PS ... same goes for advice from any others reading this post.
 
does it have to be a standing order or can I just transfer 1k a month from another account?
 
Dublin85 said:
does it have to be a standing order or can I just transfer 1k a month from another account?
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A standing order for at least 10 EUR per month is mandatory. The money must come from another AIB account.

You can manually wire as much as you want on top of the 10 EUR.
 
You only need to set up a standing order to open the account. You can change or cancel it at any time after the first payment.

I have one account with money going in monthly and another with no standing order anymore but random lump sums, both earning the same interest.

You're still limited to interest on +1k per month but you can deposit whatever/whenever you like.
 
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Dublin85 said:
does it have to be a standing order or can I just transfer 1k a month from another account?
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Despite my skepticism about the product, I wanted to start one of these (as a means of collecting money owing to me by aa third party by regular repayments). I set one up using my own accounts, which automatically created the standing order and then immediately cancelled the standing order. The payee transfers €1,000 each month. It's been running like this for seven months with no repercussions (to date). So it would appear that although the SO is necessary according to the T&Cs, you can get away without it.
 

Hi @baj2005

I chose BUNQ (N26 would now be another contender following their announcement this week) because it is a bank offering a regular banking experience. You put money in and you take money out, and that all there is to it. Raisin is a different kettle of fish. It's a two step process (money from you to Raisin and Raisin to the destination bank, and visa versa on the way out) which offers more opportunities for delays, problems etc. Also, Raisin is predominantly term deposits as opposed to on-demand, as is the AIB Regular Saver on which I based the comparison. I also have some lingering concerns about Raisin and some of the outfits they deal with; not so much about the ultimate security of my funds, but the possibility of things going wrong and suffering delays while they were being resolved. (I'll declare that I have substantial funds with Raisin). So in this instance, it's more a matter of convenience, liquidity and wanting these funds to be actually available on demand.

All of the "fintechs", as well as some of the other offerings in this broad space have had issues reported from time to time. This includes BUNQ, N26, Raisin, Trade Republic, Advanzia, Lightyear etc. etc. It doesn't stop me using them, but I'm cautious about managing my expectations or becoming overly dependent.

Unasked for advice..... On your other point, I also assist my elderly mother in managing her cash pile. Generally I stick to State Savings and the bricks and mortar banks. I know that I would never hear the end of it from my siblings (notwithstanding the fact that none of them lift a finger to assist !!) if I put her money elsewhere and there were delays withdrawing, never mind losses. It may sound alarmist, but having lived through real world experiences with the likes of Northern Rock implosion and Ulster Bank's IT fiasco, I tend to play safe, in particular where my mother's money is concerned.
 

As another poster pointed out you are breaching the terms and conditions by not keeping the standing order in place. But sounds like you've got away with it. But there is a risk that AIB will catch this. Standing order just needs to be 10 Euros per month and you can wire the remainder which is a low standing order and keeps you compliant with the terms and conditions.
 
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