Corporate Deposits Rates vs Personal Deposit Rates

Frasier

Registered User
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38
Can anyone tell me why corporate deposit rates are lower than personal deposit rates.

For example, with RaboDirect, as an individual you can have 6mth term account returning 5.25% but the 6mth corporate deposit account returns 4.71.

I would have imagined it's money all the same as far as the bank was concerned??
 
Corporate accounts would be expected to be larger..also they are generally calcularted on a 360 day basis as opposed to 365 day basis for personal accounts.

There's generally room for negotiations with a corporate account in regard to rate as well - so generally 4.71% would a guide.
 
Thanks for that.

Not sure that I understand the point about the account being larger. I would have thought 10 personal accounts at 100K has the same value to a bank as 1 corporate account and 1M?
 
Its a lot to do with the propensity/risk for repayment
The reason for this is that the likelihood of losing 1 corporate account for €1m is higher than 10 accounts for €100k each.
 
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