Current Account paying good interest?

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