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07-03-2021, 17:49   #586
silver2020
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Originally Posted by uberwolf View Post
I'm not sure what figure you're referring to - I.e where you're seeing 1.13%. In had a quick look back through the thread and didn't catch it. But the CRR is not your answer

The essential is that notionally the bank borrows money from the interbank market to lend to you. Say for 5 years. So the prevailing 5 year rate on that day is A. If after 2 years you want to break then the bank has to place your money back on the market - this time at the prevailing 3 year rate so that there is no maturity mismatch. The 3 year rate is B. The difference between the two is the basis of your break fee, unless B is higher than A. Yield curve shenanigans can mean that short term rates are higher if the market is pricing in particularly unusual activity, but typically the shorter term is cheaper - resulting in a fee being payable. A flat curve works for us consumers.


This has been the case since the mortgage credit directive came into force. That would override any contractual terms that predate the mcd.
UB have a published "Cost of Funds" rate and give the historic rates since 2012.

They also have a break fee calculation example and use the phrase "cost of funds" rate from 2014 & 2015 in their example. This rate does not correlate to the published Cost of Funds rate, so I suspect that there are different cost of funds rate for different lending types.
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07-03-2021, 18:24   #587
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So with a large number of UB customers with current accounts, do you think any of the other banks will offer incentives for UB customers to move?
It won't happen for a couple of years but at the moment it looks like KBC comes out on top if you are someone that rarely if ever needs to use a physical branch. They come out on top for me as I can reduce banking costs to a minimum with them and their mobile banking beats AIB and BOI. Same applies to credit cards, a nice incentive might entice UB customers.
Maybe this should have a thread of its own.
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07-03-2021, 19:15   #588
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Originally Posted by silver2020 View Post
UB have a published "Cost of Funds" rate and give the historic rates since 2012.

They also have a break fee calculation example and use the phrase "cost of funds" rate from 2014 & 2015 in their example. This rate does not correlate to the published Cost of Funds rate, so I suspect that there are different cost of funds rate for different lending types.
I think the difference is the tenor. As in cost of funds may well be expressed in the overnight rate, whereas fixing involves longer terms - unpublished.
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07-03-2021, 19:18   #589
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Originally Posted by derekeire View Post
So with a large number of UB customers with current accounts, do you think any of the other banks will offer incentives for UB customers to move?
It won't happen for a couple of years but at the moment it looks like KBC comes out on top if you are someone that rarely if ever needs to use a physical branch. They come out on top for me as I can reduce banking costs to a minimum with them and their mobile banking beats AIB and BOI. Same applies to credit cards, a nice incentive might entice UB customers.
Maybe this should have a thread of its own.
I doubt it - no other bank wants the money (its too expensive to hold), so I can't see them offering incentives
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07-03-2021, 19:54   #590
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So with a large number of UB customers with current accounts, do you think any of the other banks will offer incentives for UB customers to move?
.
An Post were first out of the traps cancelling their rewards scheme

Bank of Ireland followed suit by announcing 80 branch closures



Here are the comparisons
https://www.bonkers.ie/blog/banking/...rrent-account/
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