Rabobank says that their fixed rates are no longer competitive!

[Brendan Burgess]

But they still do 5 year and 10 year fixed rates.

[broken link removed]

I don't fully follow this, as they are still quoting 1 year rates on their [broken link removed]

I presume that the webpage has not caught up with the press.



Due to the current volatility in the international money markets and in combination with [broken link removed] we are currently not able to offer competitive rates suitable for the Irish market for any Term Deposit up to 4 years.
A better option is to put your money [broken link removed]. We're offering a rate of 3.10% Fixed, gross/AER** for amounts from €0 to €20,000 effective until 2/04/12 with the Standard variable rate applying thereafter. A Standard variable rate of 2.4% Gross/AER** on remaining amounts above €20,000. So don't hang about.
Our 5 and 10 Year Fixed Term Deposit Account really marks our card as a committed partner for your savings. We're safe now and safe for the future and we're here to stay. So if you're looking to fix and you've a lump sum you'd like to put somewhere really secure for a while, well okay a little longer than 'a while', why not put it with us?
Remember, you can still get at your interest monthly, every 3 months, every 6 months or every year if you choose to go long haul. It's up to you.

• 10 Year Fixed Term Deposit
• Start with just €500
• Choice of interest payment options
• No limit on the amount you deposit
• Receive a fixed rate of interest
• Low risk, competitive returns over the longer term

 

[RaboDirect]

Just to clarify, all our short term deposit accounts are still available. At RaboDirect, we’re just highlighting that our customers can get a better return currently with our on-demand option.

 

[Lightning]

RaboBank have had that message on their website for a wee while. It is surprising honesty in some respects.

I was told before that RaboBank Ireland deposits are reinvested by RaboBank Netherlands in money market investments etc. Hence, the rates of return bare some resemblance, minus margin, to money market rates.

Meanwhile, other banks use deposits for help fund domestic operations.

Hence, it is not really a case that RaboBank 'can't compete', it is just that Rabo make different use of their deposit funds. That different use of deposit funds can only result in lower rates, that is, if they want to do it on a profitable basis.

Rabo could choose legally to make a more profitable, but riskier, use of deposit funds but choose not to.

 

[Lightning]

Hi Brendan,

Rabo have listened to your feedback.

They have changed the phraseology .

While these short term deposit accounts are still available, we believe that at present a better option is to put your money [broken link removed].