Transfer from Regular Savings ?

S

Seabass

Registered User
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Hi All

I have about 9k in a standard Rabo account making 2.25%.
I have an online savings account which I save to monthly with AIB which is now approaching 8k but the interest rate seems to have now decreased to 1.8%.

I think the rabo rate is good up to a maximum of 20k.

Is it as simple as 2.25% > 1.8% therefore I should clear our the online savings account into Rabo and open a new regular savings account wherever I get the best deal (KBC maybe) ?
Or is there anything I need to watch out for before doing this ? Obviously there could be other accounts too which are offering better rate than Rabo which I'd need to check out.
Essentially I suppose I want to know when is the right time to clear out a regular savings account into a lump sum account.

Many thanks in advance and apologies if the question appears illogical or simplistic !
 
You can withdraw or clear from "regular" savings accounts whenever you want for whatever you want. You just have to watch out for interest penalties if you make too many withdrawals in a given period and you may also have to serve a notice period.

The main aim of regular savings accounts is to facilitate regular monthly payments into them by direct debit or other means. There is no real reason to leave large lumps sums in them unless there is a particular reason.

If the interest rate is better in the Rabo account, why not move the money across? Then just keep the regular payments going into the AIB or a new account.

Also, just because the likes of the Rabo account is not designated as a "Regular Savings Account" doesn't mean that you can't regularly save into it e.g. pay a regular monthly amount into it using your online banking. That's what I do with my Rabo account. Interest rate is still decent and you have instant access.
 
If you don't need instant access to some of the money - put the money in state savings for 3 years.
 
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