AIB Regular Saving 7.3% ?
- Thread starter MugsGame
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Re: AIB 7.3% regular saver for new accounts
Just after visiting our AIB branch - won't have the application forms in until friday at the earliest.
Why bother launching a product that is not even available to the public at the time of the launch. Im sure its not something that they decided to do during tea break!
Just after visiting our AIB branch - won't have the application forms in until friday at the earliest.
Why bother launching a product that is not even available to the public at the time of the launch. Im sure its not something that they decided to do during tea break!
Re: AIB 7.3% regular saver for new accounts
So I have the old AIB Regular Savers account that I'm only earning 4% with now. I'd get more with AIB's 7 day online account (5%) or Rabodirect, so the question is how is the best way to exit out of the AIB regular savers acc.
If I close the account today, will I get the full interest earned up until today?
Or alternatively should I reduce the direct debit to the minimum amount of €10 and wait until the next interest payment day in April and then close the account?
Thanks in advance for any help with this.
BTW Is the First Active regular savings account worth opening, or will this also end up having the same issue?
So I have the old AIB Regular Savers account that I'm only earning 4% with now. I'd get more with AIB's 7 day online account (5%) or Rabodirect, so the question is how is the best way to exit out of the AIB regular savers acc.
If I close the account today, will I get the full interest earned up until today?
Or alternatively should I reduce the direct debit to the minimum amount of €10 and wait until the next interest payment day in April and then close the account?
Thanks in advance for any help with this.
BTW Is the First Active regular savings account worth opening, or will this also end up having the same issue?
Re: AIB 7.3% regular saver for new accounts
You need to check the T&Cs carefully to see what the implications, if any, are of closing now or reducing the monthly contribution.
I'd say that most of these 7% accounts will eventually drop the rate but while the 7% rates are available (and all things being equal - in particular no sneaky or unnecessarily restrictive T&Cs) they are worth availing of for cash deposits.
John Rambo
Registered User
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Re: AIB 7.3% regular saver for new accounts
Isn't it fair to say that they're a bad idea for cash deposits? As in, if you've got €10,000 hanging around you're better off leaving it somewhere like FA, Rabo or NR at around 5% because a lump sum filtered into one of these products at 7% really only yields 3.5% over the year. Regular savings products seem to be more effective only when you're salting away a portion of your salary each month.
Isn't it fair to say that they're a bad idea for cash deposits? As in, if you've got €10,000 hanging around you're better off leaving it somewhere like FA, Rabo or NR at around 5% because a lump sum filtered into one of these products at 7% really only yields 3.5% over the year. Regular savings products seem to be more effective only when you're salting away a portion of your salary each month.
Jethro Tull
Registered User
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Re: AIB 7.3% regular saver for new accounts
Don't forget if you have 10k earning 5% and you drip feed a 7% regular saver you have some money earning 5% (starting off at 10k dropping to 0) and some earning 7% (1k after the first month rising to 10k).
It is a better option if maximising interest earned is your game.
Don't forget if you have 10k earning 5% and you drip feed a 7% regular saver you have some money earning 5% (starting off at 10k dropping to 0) and some earning 7% (1k after the first month rising to 10k).
It is a better option if maximising interest earned is your game.
Re: AIB 7.3% regular saver for new accounts
No - it's not fair to say that. See here. And as Jethro Tull said above...
Re: AIB 7.3% regular saver for new accounts
Just to complicate things a little, I also have one of those AIB Online savings accounts, where you get 4.5%, plus a 10% bonus for each year after that.
I'm currently on the second year of this, so that would be 5.4%. However the question, do you only get the 5.4% on the amount lodged at the start? If I put a €1000 in it today, wll I get 5.4% or would it be 4.5% on todays €1000 until next year.
Just trying to figure out what is the best way to save my money.
Cheers
Just to complicate things a little, I also have one of those AIB Online savings accounts, where you get 4.5%, plus a 10% bonus for each year after that.
I'm currently on the second year of this, so that would be 5.4%. However the question, do you only get the 5.4% on the amount lodged at the start? If I put a €1000 in it today, wll I get 5.4% or would it be 4.5% on todays €1000 until next year.
Just trying to figure out what is the best way to save my money.
Cheers
Re: AIB 7.3% regular saver for new accounts
Hi,
Im not sure if this was asked already, but the 7.3% AER rate AIB are quoting, on their website they say the rate is ECB+3%, so this would be 7% (variable), how do they come up with 7.30% AER, it the rate promise is only for 12 months?
Just curious
Thanks
Booby1
Hi,
Im not sure if this was asked already, but the 7.3% AER rate AIB are quoting, on their website they say the rate is ECB+3%, so this would be 7% (variable), how do they come up with 7.30% AER, it the rate promise is only for 12 months?
Just curious
Thanks
Booby1
Re: AIB 7.3% regular saver for new accounts
There is no point in keeping the old regular savings account, it only pays 4%, you would be better off closing it and putting the money in a First Active eSavers account (5.22%), Rabodirect (4.3%) or even AIB's own 7 day online demand deposit account (5%).
I've done what ClubMan suggested about reading the T&Cs of closing the old regular savings account and the T&Cs have nothing to say about closing the account, so I assume you just close it and get all your interest until that day, the T&Cs do say that the interest is paid daily. I'll double check with AIB tomorrow.
The only thing I'm trying to work out now is where to put my regular savings. I've done some maths and it seems that putting it into the online personal savings plan would be the best bet, given that this year I'll get a rate of 5.4% on it and next year it will be 5.85%. Sure the headline rate of 7.3% looks better, but I've worked out that I will earn more with the online personal savings plan over two years (at 350 per month over 2 years you will end up with €8962 versus €8840) and even more over 3 years.
And of course I don't have to deal with the hassle of going to an AIB branch to open yet another stupid account.
There is no point in keeping the old regular savings account, it only pays 4%, you would be better off closing it and putting the money in a First Active eSavers account (5.22%), Rabodirect (4.3%) or even AIB's own 7 day online demand deposit account (5%).
I've done what ClubMan suggested about reading the T&Cs of closing the old regular savings account and the T&Cs have nothing to say about closing the account, so I assume you just close it and get all your interest until that day, the T&Cs do say that the interest is paid daily. I'll double check with AIB tomorrow.
The only thing I'm trying to work out now is where to put my regular savings. I've done some maths and it seems that putting it into the online personal savings plan would be the best bet, given that this year I'll get a rate of 5.4% on it and next year it will be 5.85%. Sure the headline rate of 7.3% looks better, but I've worked out that I will earn more with the online personal savings plan over two years (at 350 per month over 2 years you will end up with €8962 versus €8840) and even more over 3 years.
And of course I don't have to deal with the hassle of going to an AIB branch to open yet another stupid account.
Mr Sparkle
Registered User
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- 29
Re: AIB 7.3% regular saver for new accounts
When you close the old regular saver account in writing you are credited with all the interest due up to that day. Mine was automatically lodged into my AIB current account by the branch.
When you close the old regular saver account in writing you are credited with all the interest due up to that day. Mine was automatically lodged into my AIB current account by the branch.
Re: AIB 7.3% regular saver for new accounts
Brian1/Mugsgame - re the online personal savings account, are you sure the interest ''applies to the whole balance?'' Brian1, are you sure you are getting a rate of 5.4%? The prospectus states '' End of Year 1, 10% on interest is paid.'' I thought as you do, but on another thread was told not so. Must do a search for that thread.
Brian1/Mugsgame - re the online personal savings account, are you sure the interest ''applies to the whole balance?'' Brian1, are you sure you are getting a rate of 5.4%? The prospectus states '' End of Year 1, 10% on interest is paid.'' I thought as you do, but on another thread was told not so. Must do a search for that thread.
Re: AIB 7.3% regular saver for new accounts
Well my understanding is that the bonus is paid on the interest earned.
So if you save €350 a month @ 4.5% you will earn €103.80 interest, which you get a bonus of another 10% which would be €10.38 given you a total of €114.18 (before DIRT).
Now the regular savers account will give you 7.3%, so if you put in €350 per month, you will earn €169.84 interest.
Obviously this is more, however where it gets interesting is in year two. Lets for argument sake you don't save anything extra in year two (you will have to, to keep the account open, but just for simplicity), the regular savers account will drop to 4% giving you a total of €4547.87, while the online personal savings account will give you €4552.
While this is only slightly more, don't forget at the end of year 3 the bonus increases to 30%, year 4 40%, year 5 50%, etc. constantly widening the gap between what you can earn with the regular savers account.
Well my understanding is that the bonus is paid on the interest earned.
So if you save €350 a month @ 4.5% you will earn €103.80 interest, which you get a bonus of another 10% which would be €10.38 given you a total of €114.18 (before DIRT).
Now the regular savers account will give you 7.3%, so if you put in €350 per month, you will earn €169.84 interest.
Obviously this is more, however where it gets interesting is in year two. Lets for argument sake you don't save anything extra in year two (you will have to, to keep the account open, but just for simplicity), the regular savers account will drop to 4% giving you a total of €4547.87, while the online personal savings account will give you €4552.
While this is only slightly more, don't forget at the end of year 3 the bonus increases to 30%, year 4 40%, year 5 50%, etc. constantly widening the gap between what you can earn with the regular savers account.
Re: AIB 7.3% regular saver for new accounts
Now we understand the game! As soon as too much money from old reg. saver accounts earn too much interest on a daily basis they reduce the rate and the banks announce a new account so the same similar rate will apply for lower amounts!
V. smart!
My goodness I'm going back to the old lovely mentality of the lump sums only as soon as my anglo-irish + FA + EBS (1st april?) + Bank of Ireland (april as well?) will reduce their rates!
Now we understand the game! As soon as too much money from old reg. saver accounts earn too much interest on a daily basis they reduce the rate and the banks announce a new account so the same similar rate will apply for lower amounts!
V. smart!
My goodness I'm going back to the old lovely mentality of the lump sums only as soon as my anglo-irish + FA + EBS (1st april?) + Bank of Ireland (april as well?) will reduce their rates!