RaboDirect Cuts Deposit Interest Rates

fungus said:
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.
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Although safety is obviously a concern nowadays, I find it objectionable that one institution explicitly uses the possibility of another's default as a marketing strategy.
How to manage your savings during a banking crisis... Some banks got downgrades in their credit ratings which means that rating agencies see increased levels of risk associated with these banks - you can read more about these downgrades here
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Regarding northern rock: If NR offer a same-day transfer facility for €25, and Rabo don't offer such a facility at all, then is it a fair comparison?
If I really need my money out today, I might be prepared to pay €25 and be glad of the service.

RaboDirect, please clarify whether you offer a same day transfer facility or otherwise the basis you're using to justify the claim that NR's fees are higher.
 
Competition is healthy. We acknowledge that. It offers choice. Ultimately depositors choose what suits them best whether it’s the rate or a combination of rate and other features and benefits. Our intention was not to discredit any of our competitors, but rather to point out the differences when comparing offerings. In our blog post we refer to the general fees and charges that are associated with Northern Rock’s account, not specific charges. So again, our comparison is fair in that there are no fees or charges associated with our on demand account and there are with Northern Rock.

Again, some people find our safety a reassurance, for others it’s not important.
 
Rabo were good to me for the last couple of yearsand I left my cash with them. Now that their deposit rate is 3% I will be saying goodbye. I know that the NR interest rate will suit my requirements for 2009. The diff in interest will more than pay my Tax liability. Thanks again Rabo.
 
RaboDirect said:
there are no fees or charges associated with our on demand account
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This is untrue. From another consumer posting on your blog
If I lose my Digipass you reserve the right to charge me an unspecified fee for it; this is buried in your terms and conditions.
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Northern Rock don't have this charge (for obvious reasons) but I wouldn't support them claiming that as a competitive advantage.

Further
Northern Rock have no charges for standard account transactions. They charge for non-standard things like express transfers.

Do RaboDirect even offer any of the extra services that Northern Rock have a small additional charge for such as interest rate certs or express EFT?
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MugsGame said:
This is untrue. From another consumer posting on your blog
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Good spot. I have also read on boards.ie that RaboDirect charge 25 EUR for guaranteed same day transfers like Northern Rock (and many other banks).

Rabo - How much do you charge for guaranteed same day transfers?
 
Fungus & MugsGame

The Digipass is free. Yes, we reserve the right to charge you to replace it, but we’ve never charged anyone for a replacement Digipass. This information is not hidden in our terms and conditions. It’s outlined in our security FAQs about the Digipass.

In relation to charges, we don’t offer a Same Day Money Transfer facility and we don’t offer a Withdrawal by Cheque facility. However we don’t charge for Special Presentation of a Cheque, Copy Cheque, Copy Statement or Copy Tax Certificate.

Rgds
RaboDirect
 
Thanks for the clarification Rabo.

I still strongly believe that when you compare the very seldom required Northern Rock service charges to the Rabo package with the lower interest rate - over 99% of customers are financially better off with Northern Rock.
 
Hi Guys/Gals!

I too am looking to move my savings from Rabo due to the drop in their rates... Just wondering why everyone is raving about NR @5% when BOI is offering 7% on their Easy Saver?

My main bank A/c is with BOI and I was thinking about transfering 3,700 into 2 seperate Joint Easy Saver A/c's (AFAIK you can have 2 A/c's if they are joint A/c's!) and then drip feeding them both with €100 a piece each month bringing them up to €5k each over 12 months... My questions on this are...

Will I get 7% on the €3800?
Drip feeding €100 into each A/c will send me over the €5k in 12 months incl. interest...Is this OK to do?
Am I mad going with the BOI Easy Saver A/c as I'll have all my eggs in one basket?

Thanks in advance?
 
You don't need to open 2 a/c's if the total you're putting in is €3700. You can put in €500 per month & bring your total up to €5000 in 10 months.
If you continue to save the balance over €5k will earn an int rate of 3%.
Remember you are only allowed up to 4 withdrawals pa without incurring a penalty.
Also take note that these rates are VARIABLE ie. they can change.
You better hurry if you want to open one. I've a feeling they're on the way out !
 
Chuckles said:
I too am looking to move my savings from Rabo due to the drop in their rates... Just wondering why everyone is raving about NR @5% when BOI is offering 7% on their Easy Saver?
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Why NR over BOI? Because the NR product is better for most savers in terms of their return.

Chuckles said:
Will I get 7% on the €3800?
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Highly unlikely. The ECB are expected to cut rates again in March and BOI are likely to follow suit.

Also, you will only earn interest on 500 EUR in month one, 1,000 EUR in month two etc versus the whole amount from day one with NR.

Chuckles said:
Drip feeding €100 into each A/c will send me over the €5k in 12 months incl. interest...Is this OK to do?
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You will earn a very low 3.00% if you go over 5,000 EUR.

Chuckles said:
Am I mad going with the BOI Easy Saver A/c as I'll have all my eggs in one basket?
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100% of your deposit is guaranteed by the Irish state who are AAA negative rated.


You are most likely to be better off with an on demand account with NR with a drip feed into an Anglo Irish regular saver account.
 
Please note that RaboDirect have only dropped their rate on the RaboDirect Business Savings Account to 2.50%. Personal deposits in the RaboDirect Savings Account still receive a rate of 3% on savings from €1.
 
RaboDirect said:
Please note that RaboDirect have only dropped their rate on the RaboDirect Business Savings Account to 2.50%. Personal deposits in the RaboDirect Savings Account still receive a rate of 3% on savings from €1.
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Thanks for letting us all know.

I assume that the personal deposit account is likely to follow suit if the ECB cut rates by the expected 50 BPS to 75 BPS at the start of March.
 
Rumours starting to fly around that monery is fleeing this country. Shane Ross has hinted at it in the Oireactas today.
Question: If things tip over the edge here, will Rabo still be open for business? It's Rabo.ie after all....so its an Irish based wing of a Dutch bank. I wonder if it might become like NR when the run started. Nobody could get their money out!
 
They are. The Irish guarentee is worthless.
The Dutch one may be better, but this is Rabo.IE
What if the IMF freezes all Irish accounts?
 
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