AIB online saver confused

TheDriver

"The Online Saver Account allows you to earn a competitive rate of interest on an increasing amount each month. The monthly balance threshold is €1,000 in month 1 rising by €1,000 per month until it reaches €12,000 in month 12. In month 13, it reverts back to €1,000 and the cycle starts again. "

It's 3%. If I save 1000 a month, are they saying that by month 12 I am getting 3% on the 12k (adjusted for per day interest) and on month 13 I'm getting 0.5% on 12k and 3% on 1k? So after month 12, withdraw the 12k?

dotsman

That's precisely it.

TheDriver

https://www.boards.ie/discussion/comment/121202593#Comment_121202593

Thanks. Is that normal practice?

dotsman

Not specifically these rules but, yes, generally most bank's "best savings rate product" will have restrictions on it, so the headline rate only applies to "some" of your savings.

With boi, for example, it's better because the max limit is 2,500 per month. But it's also worse because the headline rate only applies in the first year. At least with AIB, it recycles every year. But with boi you would need to actually completely close the account and open a new one and the start over every year (assuming you are allowed?).