Rabo leaving it late....to announce new rate

Dont Bank of Ireland have a bond that runs 3 months at a time and you can withdraw as you please. You have to start with 25k though.

I think it is a shame for small savers that Rabo have made this decision. If most of their clients have in excess of 20k, as Rabo claims above, then why not just leave the 5%<10k rate and up the >10k rate as this keeps all happy. Me thinks he's spinning..
 
Ceatharlach said:
If most of their clients have in excess of 20k, as Rabo claims above, then why not just leave the 5%<10k rate and up the >10k rate as this keeps all happy. Me thinks he's spinning..
Click to expand...
As Lossy pointed out earlier those with c. €23K+ on deposit will actually be better off overall with the new rate regime.
Lossy said:
On the other hand those who have deposited €22729 or more on-demand with Rabo will actually receive more interest compared to the old rates!

Gee.... I have little to do this morning! :D
Click to expand...
And why are they doing it? Because, for one thing, they are a bank whose primary obligation it is to maximise returns for shareholders I suppose
 
Nemesis said:
For people who regard that as little more than a trap to catch their savings when the UK government defaults on its guarantees, that's just too big of a risk to take :)
Click to expand...

There is absolutely no grounds for believing the UK government will default I've never heard this mentioned??? But I will not be putting as much money as planned into rabo now as I dont believe its a good rate especially when you can stick it in a few other banks bit by bit and get 7%!

Never mind the FA and NR rates.
 
4.3% = Goodbye Rabodirect from a straight talking customer!:D

P.S.: Hi guys, I wish you all a Happy Christmas! (including Rabo despite such a low interest rate:D)
 
ClubMan said:
And why are they doing it? Because, for one thing, they are a bank whose primary obligation it is to maximise returns for shareholders I suppose
Click to expand...

This is a very important point that many here seem to be forgetting. Rabo are in this to make a profit (and nothing wrong with that). They're not going to pay any more than they absolutely have to or raise rates just to make AAM users say nice things about them.

queenlex said:
There is absolutely no grounds for believing the UK government will default I've never heard this mentioned???
Click to expand...

Just in case there's any confusion, I agree. But it appears some people still have their doubts.
 
Nemesis said:
This is a very important point that many here seem to be forgetting. Rabo are in this to make a profit (and nothing wrong with that). They're not going to pay any more than they absolutely have to or raise rates just to make AAM users say nice things about them.
Click to expand...

I don't think anyone is forgetting that. People here aren't stupid. Rabo have done wonders for the savings market in this country after years of being ripped off (yes ripped off) by the cartel of Irish banks that operated here. However, the fact remains that people don't owe banks any sort of loyalty. If they can get a better rate than now offered, they should move their money. If not, stay where you are. Its as simple as that. I don't think people are having 'a go' at Rabo for making a business decision. They are just pointing out the realities of the situation and that is that a better rate can probably be found elsewhere for some people. I am sure Rabo understand it is nothing personal!!!!
 
Sunny said:
If they can get a better rate than now offered, they should move their money. If not, stay where you are. Its as simple as that.
Click to expand...
Not necessarily - some people will make do with lower rates for all sorts of reasons: inertia/laziness, lack of awareness that there are better offers, satisfaction with other aspects of their existing bank's (banks') services etc. Not everybody shops around on "price" alone. More should though in my opinion.
 
ClubMan said:
Not necessarily - some people will make do with lower rates for all sorts of reasons: inertia/laziness, lack of awareness that there are better offers, satisfaction with other aspects of their existing bank's (banks') services etc. Not everybody shops around on "price" alone. More should though in my opinion.
Click to expand...

Rabo's (S&P) AAA rating would be another reason why some people will stay. The only other bank in Ireland that comes close is UlsterBank with an AA rating with all the rest having a rating between A and AA-. Northern Rock recently went from A+ to A.

[broken link removed]
 
Lossy said:
Rabo's (S&P) AAA rating would be another reason why some people will stay. The only other bank in Ireland that comes close is UlsterBank with an AA rating with all the rest having a rating between A and AA-. Northern Rock recently went from A+ to A.

[broken link removed]
Click to expand...

for small deposits (below the government guarantee) the correct strategy is of course to be a "rate tart" as clubman advocates.

however for anyone with large cash deposits lossy's remark is critical factor.

think of the rate offered by the bank as
rate = ECB rate + credit spread
​
then a large credit spread reflects the banks need for cash and the funding rate available to it on the interbank or bond markets.

if you invest your life savings in the bank with the largest credit spread ("rate tart" strategy) then you are effectively investing in the bank with the highest probability of default. most people would not knowingly choose not to do this.
 
If I had a big wad of dosh (which I certainly dont have) and I wanted to save rather than invest I would be splitting off a few batches of 15-20K. I'd be a right "rate tart" with them and lob the rest in Rabo.

I better stop now before I start sounding like a Rabo employee! :eek:
 
Does anyone know what guarantees come with the new rate of 4.3% ? Rabo state earlier in this tread that it is currently .3% above ECB, I presume this means the rate being offered is ECB + .3% ( it could be viewed as 4.3% regardless of ECB). Also either way how long is this rate available for ? Their website just states 4.3% from 01/08. Thanks.
 
Bye bye rabo. I hate your Fob thing anyway.

We have 3 Rabo accounts with €10K each in them. Time to spread it somewhere else.
 
I don't get the "nah nah nah, nah nah nah" attitude of some of those "leaving". Are we still in primary school? It's just a bank...

That said, Rabo's usually been a bit quicker than others at announcing rate changes, wonder what can be expected from others in January...
 
bungaloid said:
think of the rate offered by the bank as
rate = ECB rate + credit spread​

then a large credit spread reflects the banks need for cash and the funding rate available to it on the interbank or bond markets.

if you invest your life savings in the bank with the largest credit spread ("rate tart" strategy) then you are effectively investing in the bank with the highest probability of default. most people would not knowingly choose not to do this.
Click to expand...

What??? :confused:

The rate offered by banks to depositors tells you nothing about a banks probability of default. Rabo are offering 5% at the moment and that is alot higher than what Bank of Ireland or AIB offer but it doesn't mean they are more likely to default.
 
Rabo suggested most of their clients have over 20K. If the small saver is of such a minority then why adjust the rate.
 
I suspect Lossy is right. At present you need a secure bank!

Don't expose yourself to problems for a small percentage gain.
 
Ceatharlach said:
Rabo suggested most of their clients have over 20K. If the small saver is of such a minority then why adjust the rate.
Click to expand...

Maybe they are fed up with sending out multiple digipass thingys to those who have more than 20k and are opening more than one account.
 
You must log in or register to reply here.
Back
Top