EBS - Optimise Questions

K

kmelvin

Registered User
Messages
216
Hi everyone,

I'm a little confused as to how the Optimise account works - maybe someone could help.

The account offers 5.25% for the first 3 months. I thought the interest was calculated by applying the 5.25% to the final amount in the account after 3 months. However, I've just been told the 5.25% is calculated daily.

So if I have €18000 in the account for 2 weeks, I get 5.25% of €18000 for this period. If I withdraw €4000, I get 5.25% on €14000 for the remainder period (until the 3 months are over).

Am I right in thinking this or way off the mark?

Thanks

K
 
AFAIK the 5.25% is paid on your balance for the first three months as you state - it then drops to the ECB rate. Best to work away with your money for 3 months, then draw it all out and deposit in better paying account i.e. Northern Rock (4.30%), Rabodirect (5% on first 10K) or Anglo Irish Bank 21 day account (4.25%)
 
Thanks oldtimer.

I understand the interest applies to the first 3 months.

My question is how this interest is actually applied over the 3 month period, i.e. is the interest calculated daily for the amount in the account or is it calculated against the amount left in the account at the end of the 3 month period?

Also, how is the interest paid out - i.e after the 3 months or at the end of the year?

Thanks for any help.

K
 
I d like to know how this works too . Is it 5.25% of the sum invested divided by 365, the result which is then multiplied by the number of days ?

And when is it paid out?
 
Sorry Clubman.

Actually I was hoping you would have some feedback on this - you seem to be very knowledgeable on savings accounts and banking in general.
 
Why don't you contact EBS for the information you are looking for and then post their answers here ?
 
I will explain what I did and maybe my experience will answer Kmelvin and Sign. I was attracted by the 5.25% for 3 months so put my SSIA into an Optimise account. I have done so on the understanding I can close the account after 3 months, drawing my capital and all interest accrued. If I continued to leave the account open the interest would be added on 31st December but when closing the account the interest is added and paid on day of closure. Also note rule 12 of terms and conditions state '' Interest will be accrued on a daily basis on credit balances.'' Hope this of help.
 
I did contact EBS but the person I spoke to wasn't any help.

Oldtimer thats exactly what I was looking for - not too sure how I missed than in the T&C's.

Thanks for your help with this.

K
 
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