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New AIB T&C from 12 January 2021

  • 20-10-2020 1:58pm
    #1
    Registered Users Posts: 7,495 ✭✭✭


    AIB have announced new changes to Accounts from 12 January 2021

    The main change seems to be
    For customers who are Microenterprises, we would like to draw your attention to the removal of the clause which excludes Microenterprises from the application of negative interest rates


Comments

  • Registered Users Posts: 7,748 ✭✭✭ganmo


    They also changed them so that negative interest rates can be applied to saving accounts
    Translation, they dont want your money


  • Registered Users Posts: 5,532 ✭✭✭JTMan


    ganmo wrote: »
    They also changed them so that negative interest rates can be applied to saving accounts

    Exactly. The media reports on the AIB T&C change pointed towards how AIB, post T&C change, can apply negative rates to "microenterprises" but AIB also altered the T&C's for personal customers and can apply negative rates from January to personal accounts. Albeit, if that happens, it is only likely to apply to large deposits.


  • Moderators, Business & Finance Moderators Posts: 9,921 Mod ✭✭✭✭Jim2007


    ganmo wrote: »
    They also changed them so that negative interest rates can be applied to saving accounts
    Translation, they dont want your money

    There is not translation needed, there is not a bank in Europe that wants your money, because they can't afford to pay the interest on it. Banks can't lend out all of the deposits in mortgages and the non mortgage lending side is not in a healthy state, most of the potential borrowers are sub prime and not what you'd want to put on your loan book.

    Here in Switzerland I see that demand for safety deposit boxes has skyrocketed as people have switched to putting cash and precious metals into them instead of putting money on deposit.


  • Registered Users Posts: 2,334 ✭✭✭positivenote


    related to the fact that banks dont want your money, Ive had a few thousand in AIB for many years untouched generating very little interest, now it wll gather no interest from January. Not being in anyway informed about interest rates etc can anyone advice on where to relocate these funds to garner any type of interest? It approx 10k if this makes any difference.
    THanks


  • Registered Users Posts: 580 ✭✭✭ddarcy


    related to the fact that banks dont want your money, Ive had a few thousand in AIB for many years untouched generating very little interest, now it wll gather no interest from January. Not being in anyway informed about interest rates etc can anyone advice on where to relocate these funds to garner any type of interest? It approx 10k if this makes any difference.
    THanks

    I was in the same way. AIB has an investment fund you can sign up for, so you do that money in and let the markets go at it (you need to keep it there for 5 years minimum I think). Zurich also has a decent fund too.

    One of my safer areas to go is buy stock in Coca Cola. 10k should get you approximately 200 shares. Coke is a dividend aristocrat (they have increased the dividend every year for the last 25 years+). Is currently paying 1.64 a year per share. So about 3%. The stock is fairly stable price wise as well too. Obviously you get kicked for this tax wise.

    Or any other type of dividend paying stock. Obviously you need to research what you’re getting into and look at everything as well, as there are higher risks.


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  • Registered Users Posts: 14,811 ✭✭✭✭ShaneU


    Just got an email from them. Almost all accounts will have zero interest on them now, unbelievable stuff. Combine that with removing the fee refund for having a minimum balance it's like they're begging me to leave.


  • Registered Users Posts: 1,635 ✭✭✭dennyk


    ShaneU wrote: »
    Just got an email from them. Almost all accounts will have zero interest on them now, unbelievable stuff. Combine that with removing the fee refund for having a minimum balance it's like they're begging me to leave.

    They are begging you to leave. When they don't need the extra liquidity that deposits from retail customers provide (which is the case at the moment), the costs of maintaining those customers are just a net drain on their finances. Unless you're going to take out a big mortgage or drop a big chunk of change into one of their expensive managed investment products, they'd much rather you go away and stop costing them money. (At least until the economic situation changes, of course; then they'll be moaning about how no one opens savings accounts and they need a government cash infusion ASAP to keep making those double-digit-APR loans...)


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