Ulster Bank : Pathway Account

Ulster Bank seem have created a Pathway account and all old accounts are being converted into this. I think they wrote to me as I have a fiver left in the old First Active Regular Saver (the one that once paid 7.25%).

This new account pays an especially niggardly 0.05%, so that should keep you clear of any issues about paying PRSI on interest.

If anyone has any account with a significant balance going into this new arrangement then it is time to close it.

ardmacha said:

Ulster Bank seem have created a Pathway account

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Pathway has been around for some time. It is a legacy Ulster Bank product.

Ulster Bank are changing the rate from 0.01% AER to 0.05% AER for amounts under 15,000 EUR in the Pathway product as per advertisements during the week.

all old accounts are being converted into this

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Interesting. Ulster Bank must be cleaning up their large list of legacy deposit products.

ardmacha said:

If anyone has any account with a significant balance going into this new arrangement then it is time to close it.

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Absolutely. Time for those effected to switch bank at the same time to a bank that pays better deposit rates.

Perhaps I exaggerate when I say all old accounts are being converted, but the documentation listed several different ones. And as you say all Ulster Bank rates have declined more than most.

I received a letter from UB last week advising me that two legacy savings accounts (Direct Saver and Loyalty Saver) were being transferred to Pathway accounts with a dizzy 0.05% interest.

UB now have only two regular savings accounts (I am excluding Easy Access as at 0.01% interest, I don't think anyone would save a great deal of money with this product!!). Do UB not want deposits anymore?

tallpaul said:

UB now have only two regular savings accounts

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Ulster Bank have one live regular saver product which pays 2.00% AER variable .

Ulster Bank have a legacy regular saver product which pays 0.05% AER variable which seems to be moving to Pathway.

tallpaul said:

Do UB not want deposits anymore?

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Ulster Bank need deposits, they still have a loans to deposits ratio in excess of 100%, but Ulster Bank do not need deposits on anything like the scale that they needed deposits in 2007.

Ulster Banks need for deposits has greatly declined.

Sorry yes you are correct. The other account the have is their Loyalty Saver account which is classed as 'instant access' and pays 1.2%AER if you make less than 4 withdrawals a year.

Still, only having two reasonably worthwhile live savings accounts for adults seems extremely streamlined...

Ulster bank's "live" accounts aren't exactly a major draw after the latest interest rate reductions, to say nothing of the dead ones.

Yeah, Ulster Bank nor BoI nor AIB / EBS offer any form of attractive interest rates these days. Depositors are best going elsewhere.