Rabodirect drops on-demand rate - 2%

Again, any remaining account holders should check out the market leading rates on the best buys thread.

Good spot. I have updated the lump sum thread.

Anyone still with a RaboDirect savings account should shop around and switch.

Just noticed that while Rabo pay derisory rates for both term and demand deposits, they still are charging rates up to 9.99% APR for their credit account facility.

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Deposit rates have reacted to ECB changes almost overnight, but funnily enough the credit rates seem a little more sticky.

So if you put money on deposit in a 1 year term account at 1.15%, they're earning a whopping 8.84% margin when they lend out your cash at 9.99%.

Nice business if you can get it.

Yeah, Rabo are telling the world that they offer "100 basis points above the ECB base rate". They omit to tell people that the cost of credit is still about 900 basis points above the ECB base rate and Rabo can borrow at super low rates due to their AAA rating.

That is some margin that Rabo are getting from Irish consumers.

I'm definitely planning on closing my account now. They were good while they started but much better offers out there now.

I'm also looking into moving my cash from Rabo... however my mind is in a muddle on what to do!

I have approx 30k sitting in Rabo, and use AIB online savings for short term savings. The goal is to keep adding to the 30k and hopefully have a nice deposit for a house in 1-2 years.

Should I lock my money into a fixed term or use an account whereby I can access my money if I needed to? Some options I was looking into was AIB 7 day notice, PTSB 100 days or a longer fixed term. Or even savings accounts that I could access it if I needed to.

Any one got any advice on what you would do if you were me? thanks in advance

racing said:

Should I lock my money into a fixed term or use an account whereby I can access my money if I needed to?

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Do you need instant access to your money? When are you likely to need the cash?

racing said:

Some options I was looking into was AIB 7 day notice, PTSB 100 days or a longer fixed term.

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All bad options.

Have you checked out the best buys thread? The best rate for a 30K lump sum on demand is 3.60% with Anglo Irish. The best rate for a 30K 6 month term deposit is 4.04%

racing said:

Any one got any advice on what you would do if you were me? thanks in advance

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Investec if you can lock.

Sunday Independent (business section) stated yesterday Rabobank five year fixed at 4.10% is ''the highest paying savings account.'' Not for the first time Indo get it wrong. Hope somebody tells them about the 'Best Buys' thread here on AAM.

It annoys me when the newspapers publish inaccurate statements like this without doing full research.

The only good/okay savings comparison table in the newspapers is published by Money Mate in the Sunday Business Post. Most others (including The Irish Times and Sunday Times ones) display the rates in a misleading format.

I would gladly drop the Indo a line about this. Have you got a link to the article online?