AIB now offering 3% online deposit account

CCOVICH

See this link for more details.

Just set one up today, very convenient (you must be registered for online banking). Bonus rates apply, which may make the returns available higher than that of Northern Rock (3.05%) and Rabodirect (3%).

nesf

AIB have been offering that since 2004 I believe.

I've had one going for the past 6 months

Not for the interest rates, but because I find savings schemes where a fixed amount is deducted from my current account after I get my wages is a handy way for me to save. Occasionally I toss some extra into the account.

The bonus interest is nice. But not fantastic, it resets every 5 years back to 10% bonus, although the one withdrawl a month limitation is not that bad imho.

Encourages you to not withdraw often which is good thing in a savings account. But if you need the cash quickly in an emergency you can get it, which is also good.

CCOVICH

Yeah, I knew they had online savings, but wouldn't go near them at the crappy rates that were on offer. NR are a bit less convenient initially, but worth it for a higher return. The bonus rate is strange, not familiar with any other bank offering this to the Irish market.

ando

so you guys would recommend this then? I'm was thinking about making up a savings account and I already have an AIB online banking account, so this would be the most convenient for me to setup

nesf

It's an easy way to save. X is taken out of your account by direct debit once a month on a day you choose.It's an easy way to save where you can't forget to take it out.

I have a small amount being taken out automatically and I manually top it up with whatever spare cash I've lying around when my next cheque comes in.

L5

how does it compare with say a credit union savings account?

RainyDay

L5 wrote:

how does it compare with say a credit union savings account?

Every credit union is different - check with your own to see what rates they paid last year. They only confirm their interest rate at the end of each year, so you have to take a bit of a gamble as to whether they would beat AIB.

madaboutmoney

Personally I wouldn't go near AIB. They've made enough out of us all with all the overcharging. Besides, it's the usual smoke and mirrors with them. Gotta look out for the small print - 3% sounds good but you can only deposit up to a 1,000 a month. Any more and they bounce back your payment. Mad or what?? And what if you need to make more than one withdrawal in a year? You might think that you won't need to but something always comes up. So then you're penalised for making withdrawals. It's your money for God's sake. I opened an account with Rabodirect. Roll on Dankse bank next year and give the Irish banks a good run for their money. About time.

nesf

madaboutmoney wrote:

Personally I wouldn't go near AIB. They've made enough out of us all with all the overcharging. Besides, it's the usual smoke and mirrors with them. Gotta look out for the small print - 3% sounds good but you can only deposit up to a 1,000 a month. Any more and they bounce back your payment. Mad or what?? And what if you need to make more than one withdrawal in a year? You might think that you won't need to but something always comes up. So then you're penalised for making withdrawals. It's your money for God's sake. I opened an account with Rabodirect. Roll on Dankse bank next year and give the Irish banks a good run for their money. About time.

The one withdrawl a year only applies to the bonus interest they give each year. The 3% will be awarded regardless of the number of withdrawls.

The 1,000 a month is fine imho. It's a scheme for monthly savings not a lump sum savings account. And tbh, if you've more than 1,000 a month to play with then you should really be taking a look at other more risky option with the remainder. You could put 1,000 a month away safe and put the rest into whatever you liked.


I am however looking forward to more competition in the Irish banking market. It will definitely benifit the consumers I feel.

OfflerCrocGod

So it's agreed that this is pretty much a better savings account then Rabo's one yes? - if I ever get a job I may open one up

nesf

OfflerCrocGod wrote:

So it's agreed that this is pretty much a better savings account then Rabo's one yes? - if I ever get a job I may open one up

I think, personally, that they are two very different accounts.

Rabo is a deposit account with good interest rates. Simple, no notice required.

The AIB offering is a savings scheme style account with very good interest (versus a deposit) if you won't need to get at the money often. The restrictions on withdrawls will hopefully encourage you not to touch the savings unnecessarily. No notice is required also. You can set it up online with zero forms, if you are an AIB customer with internet banking and can set it up to take a fixed amount from your current account each month. You can then add in lump sums when you want, although the ceiling does apply iirc.

madaboutmoney

They are a bit different but the bonus rate is not about AIB doing you a favour 'helping you save'. The likes of AIB and Bank of Ireland have been having a laugh at us for years. They finally get a bit of competition and they raise their rates a bit but still sting you with the small print. So let's say that you make more than 1 withdrawal a year - you don't get the paltry bonus they're offering. Fair enough, most of us may not be able to put more than a grand into a savings account every month but say you get a bonus from work or some other lump sum - try lodging to AIB and they'll reject the payment. We moan about being ripped off all the time so it's time to vote with our feet. Sorry to go on a bit...but we've complained for years that we didn't have a choice with the banks in Ireland but now we do and next year we'll have even more. It's the same with likes of the VHI - there's nothing like competition to get a fairer deal. Stuff the Irish banks.

nesf

Well you could lodge it over a few months tbh. Or throw it against a mortgage if your mortgage allows that. Personally, I agree about the lack of competition but it's not as simple as us "being ripped off".

Thomas

I save with Northern Rock and they have an option of getting your interest credited to your account every month. The rate is .25 less than the annual rate but actually seeing your account earning something(even a small amount) is great incentive to save as you can really feel your getting something for nothing.

tom

WICKL0W

It's the same with likes of the VHI - there's nothing like competition to get a fairer deal.

I and a number of my family have benefited greatly from VHI in the last number of years and don't know what I would have done without them. I honestly believe community rating is a good thing for our society in the same way I believe it is a morally good thing to offer free medical cards to the over 70s.,,,but that would something to talk about on After Hours.

I have had a Northern Rock account for a number of years and they have upped their rate ever so slightly to beat the Rabo offer. I wouldn't mind the AIB offer because of Internet banking but once you can see the account I'd be transferring money out !

madramor

WICKL0W wrote:

I and a number of my family have benefited greatly from VHI in the last number of years and don't know what I would have done without them. I honestly believe community rating is a good thing for our society

you could have gotten the same benefits and payed a lower premium if
you move to one of the cheaper companies

shoegirl

Nobody has pointed out that in order to have a Rabodirect savings account you only need to have a (free of charge) Rabo current account to transfer money around with.

With AIB you need to have a personal or cashsave account to transfer to or from, which effectively means you'll be charged at least 20c a month to transfer into the savings account. So technically there is a charge - though it is small, whereas the Rabodirect offering is free. It works out at least €2.40 per year even if you withdraw nothing.

On the other hand the advantage of AIB is that if you transfer to your AIB account you've instant access to your money.

Stabshauptmann

For us students though, no charges apply IIRC.

I was just thinking about this account myself, Ive a real job now for a while and disposable income (a rare thing for students ) and dont want it wasting away in my current a\c.

Ive about 4 grand already and bout 100 yoyos to spare a week. I think ill put my spare cash in this savings account (god bless internet banking) but am looking for something better for the money Ive already saved.

Any suggestions?

RainyDay

Kaptain Redeye wrote:

Ive about 4 grand already and bout 100 yoyos to spare a week. I think ill put my spare cash in this savings account (god bless internet banking) but am looking for something better for the money Ive already saved.

Any suggestions?

Have a read of the Askaboutmoney.com Guide to Savings & Investments to understand the options open to you. It's all down to your attitude to risk, and the duration for which you can lock away your hard-earned.

D'Peoples Voice

shoegirl wrote:

Nobody has pointed out that in order to have a Rabodirect savings account you only need to have a (free of charge) Rabo current account to transfer money around with.

Yes, but you do have to have a bank account with one of the traditional commercial banks so that you can deposit cash into/withdraw cash from your Rabodirect current account. Unless of course you get your wages paid by electronic transfer to your rabodirect current accounts, and then you use your credit card for everything, and have your credit card bill(and every other bill) paid off by direct debit.

I moved from my student(dual) account account with (Ulster Bank- they were allegedly cracking down on people who were claiming student status but could no longer prove so & charging retrospectively) to Permanenttsb, so I have free banking that way.I obviously transfer money to and from Rabodirect using my free banking account.