RaboDirect Cuts Deposit Interest Rates

In fact, thinking about it, i`m just going to more or less clear out the Rabo account tonight in to my everyday current account and drop into Halifax with a cheque. No reason to leave the money sitting there longer than needs be.
 
Pauliwalnuts said:
RaboDirect have now dropped their interest rate on Demand Deposit accounts to 3%
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Shockingly low but not a surprising cut. Years ago RoboDirect were competitive when it came to interest rates.

The Financial Regulator have correctly update the rates this time.

Anglo Irish remain the market leader for on demand deposits at 5.50%.
 
time for me to pull out of Rabo too. most likely I'll put some funds into the Halifax Flexi Saver.

any comments on this Halifax offer would be much appreciated...
 
Have some money sitting in Rabo didn't realise their rate had dropped so much. Don't really save as such just put money in every now and again!

Does Halifax have a minimum amount to open with and a minimum to save every month?

Thanks
 
,
You have been keeping very quiet lately. Do you have any comments on the current direction of your interest rates?
 
fungus said:
The Financial Regulator have correctly update the rates this time.
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Would you have a link to where the rates are listed? I've tried to find it but not having much luck.

3% is barely better than my credit union...
 
@ Towger

Competition in this market offers choice. So yes, there are higher rates out there, and yes you can make the decision to only look at the rate being offered. In my opinion though, it’s important to strike the right balance between returns, how easily you can access your money when you need to and how safe your money is within the Financial Institution you’ve chosen to deposit it in. And so in that regard we still feel we have a lot to offer savers in the current market. In relation to the rate falling, unfortunately RaboDirect is not immune to developments in the financial markets and so we need to adjust rates when there are changes.

To get a flavour of what others think about this, take a look at our latest blog and comments on same on our website:

[broken link removed]
 
RaboDirect - It is good and refreshing to see (via your blog) that you are willing to engage in a conversation about your low rates. You make some valid points about some banks and their offers like your points that implicitly refer to the Ulster Bank on demand product.

However, some of your statements on your website are a bit misleading. Take this line from your Blog ...

Here's one example: A rate of 5.85% looks great, but when you see it's only offered until the 31st of March THIS year, you start wondering!
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You may be talking about the market leading Investec 6 month term deposit here. Who cares if the rate (possibly) ends in March? This is not a big T&C. This is not sneaky. RaboDirect change their Term Deposit rates all the time.

Yes, there are sneaky T&C's (like the Ulster Bank on demand product) out there but they are the exception rather than the rule. You make it sound more common than it is.

Most savers can get a much better rate, greater safety and no sneaky terms and conditions by depositing money in banks other than RaboDirect. For example 5.00% on demand with Northern Rock with a 100% state guarantee, no sneaky T&Cs and a good history of offering near market leading rates.
 
I'd say there's been a mass exodus from RaboDirect in the last few months with their very low rates. I'll be pulling out next week to, still deciding what's the best alternative.
 
el diablo said:
I'd say there's been a mass exodus from RaboDirect in the last few months with their very low rates.
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I hope so - I hope more and more customers realise that they are not getting a competitive rate and switch.

el diablo said:
I'll be pulling out next week to, still deciding what's the best alternative.
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Do you want on demand or a term deposit? It is probably worth acting fast if you want a good term deposit rate. The ECB meets on Thursday.
 
I fully agree with Fungus. Rabodirect's attempt to discredit Northern Rock is pathetic. True, they have charges but only via special emergency or request. I find NR very good to deal with, there is no ''sneaky stuff'', their charges are spelt out clearly, they have 100% guarantee with British treasury and their 5% rate for an on demand on line account is now a market leader.
 
I also have moved the majority of my money from Rabo to another bank - for the moment have it in the First Active esavings plus account.
 
fungus said:
I hope so - I hope more and more customers realise that they are not getting a competitive rate and switch.



Do you want on demand or a term deposit? It is probably worth acting fast if you want a good term deposit rate. The ECB meets on Thursday.
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Probably a term deposit. I'm looking at Investec and will make a decision in the next few days. :)
 
oldtimer said:
I fully agree with Fungus. Rabodirect's attempt to discredit Northern Rock is pathetic. True, they have charges but only via special emergency or request. I find NR very good to deal with, there is no ''sneaky stuff'', their charges are spelt out clearly, they have 100% guarantee with British treasury and their 5% rate for an on demand on line account is now a market leader.
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Thanks. Exactly. Well said.

Here is what RaboDirect have said about Northern Rock on their blog ...

there are no fees or charges associated with our on demand savings account - maybe you’re already aware of Northern Rocks fees and charges on their 5% account - click here to view Northern Rocks Charges - we still feel we’re pretty competitive.
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To suggest or imply that people are better off with RaboDirect than Northern Rock because of some small charges that one would assume won't impact the vast majority of Northern Rock savers is quite simply false and misleading.
 
I moved my cash from Rabbo to NR as soon as I realised they had reduced their rates so much, there are plenty of deposit guarantees out there to choose from.
 
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