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Interest from AIB

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  • 03-04-2007 12:59pm
    #1
    dellas1979
    Closed Accounts Posts: 4,128 ✭✭✭


    I opened a Rabo Account and put a large amount into it.

    I closed an AIB savings account because the interest was bad.

    So, I opened again an online savings account which I believe has 4.5% interest. Anyways I opened that account with €434 last August. I have built it back up to €3000. I got interest applied there and it was for €46. Can this be right? Would I be better off putting it into Rabo (the amount I have is over €10,000). Is there a better option?

    Thanks!


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    #2
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    was the rate 4.5% for the entire term of the savings period?

    in terms of the interest I'm sure it must be correct. If the rate is 4.5% per annum that means from the 1st of august to the 31st of march you would earn 2.98%. As you didn't have the full 3,000 in since the start this does not appear to be incorrect as the amount earning interest varied from 434 to 3,000. also remember that any interet you earn will be taxed at 20% which implies that the rate after tax over the period is 2.38%


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    #3
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    rabo pay 5% gross (i.e. before tax) on balances up to 10,000 and 3.7% after that (I think). If you don't mind opening several accounts there are better rates than 3.7% out there. Northern rock pay 4.3% from 5 april and anglo irish pay 4.25% (altho I think this might be a notice account).


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    #4
    dellas1979
    Closed Accounts Posts: 4,128 ✭✭✭dellas1979


    Thanks for the replies.


    What I was wondering was, would it make better sense to put the 3K in with my Rabo Account? I have over 10k in there are the moment.


    Or leave it in the AIB online account. Am just a bit confused.


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    #5
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    if you have 10k in rabo they will only pay 3.7% on anything above that. If you are earning 4.5% from AIB leave it there as that as good a rate as I have seen advertised.


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