KBC Launch Free Current Account, 4.00% Regular Saver and 1.40% Term Deposit

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Wow! KBC have 3 big product announcements.

[broken link removed]

Firstly, what appears to be a free current account. However, you must deposit at least 2,500 EUR per month into the account.

  • FREE ATM & Cheque transactions
  • FREE Contactless Debit Card purchases
  • FREE Online and Mobile Banking
  • FREE Direct Debit & Standing Orders
  • FREE Cashback
  • AND NO quaterly maintenance fees

Secondly, a 4.00% AER regular saver product called a Flex Regular Saver allowing a 10,000 EUR lump sum deposits. You must have a Flex Current Account.

Thirdly, a 1.40% AER 1 year term deposit. You must have a Flex Current Account.

I am still trying to read through all the T&C's.
 
Hi Ciarán

Let's look at this and see what it is worth.

For KBC mortgage holders, it's a no-brainer to hold a current account as they will get a discount of 0.2% on the mortgage rate.

Non KBC mortgage customers
I have an AIB account and pay around €80 a year in bank charges. This seems a reasonable fee to me. But if someone offers the same or better service free of charge, maybe I will consider it.

"If you fail to lodge €2,500 to your Flex Current Account in any given month, you will be liable for all fees and charges applicable to a standard KBC Current Account as set out in our Fees and Charges Booklet for the whole of the quarter in which that month fell. You will continue to be liable for such fees and charges until such time as you recommence making the minimum lodgement of €2,500 a month. Should you recommence making the minimum lodgement of €2,500 every month, you will be re-eligible for the benefits from the beginning of the next quarter"

I have volatile income and so might not have €2,500 each month. If I miss one month, I pay fees for the full quarter. So it's not worth changing for me.

Is the Regular Saver worthwhile?

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Important Information
  • To hold a Flex Regular Saver you must hold a Flex Current Account.

Flex Regular Saver

  • 4% AER
  • Save €100 - €1,000 per month(Funds must be lodged from your Flex Current Account.)
  • Withdraw funds on demand (Funds must be withdrawn to your Flex Current Account.)
  • 1 lump sum of up to €10,000 permitted
  • Max balance €40,000 (Any balance over this limit will earn interest at the Standard Demand Deposit Account interest rate.)
  • Up to two monthly payment breaks allowed each calandar year


If you already have €10,000 and you are committing to regular savings, then this probably is worthwhile.

Of course, if you have a KBC non-tracker mortgage, you should be paying off your mortgage instead.

Brendan
 

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If you already have an existing Regular Saver Account, you can still open a new Flex Regular Saver. However you cannot continue to pay into the old Regular Saver. The full balance of the old Regular Saver will continue to earn interest at the Regular Saver interest rate. While any money in the new Flex Regular Saver will earn interest at the Flex Regular Saver Rate.

Example if your Regular Saver balance is currently 15K earning 2.5% interest, you could do any of the following.
A. Leave 15K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with a balance of zero earning 4% on new deposits.
B. Leave 15K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with a new deposit of up to 10K earning 4%.
C. Leave 5K in old Regular Saver @ 2.5%. Open new Flex Regular Saver with 10K from old Regular Saver earning 4%.

Note: Regular Saver Rate of 2.5% drops to 2.00% on 12/10/2015.
 
Hi Brendan

Just to note that if you maintain a daily balance of at least €2,500 in your AIB current account for a full quarter, regardless of what lodgements (if any) you make during that quarter, the fees for that quarter will be refunded.

Also, I don't think your calculation on the benefits of the new KBC regular savings account is correct. By my calculations, the additional interest after DIRT would be around €287.
 
Can you just lodge the 2500 in month one and withdraw it again and re deposit it in month 2 ?
 
By my calculations, the additional interest after DIRT would be around €287.

My figure is to give an indication of the rough amount saved per year. I think mine would be correct for the period from 6 months to 18 months. It would be less for the first year, and more for the second year.
 
Just to note that if you maintain a daily balance of at least €2,500 in your AIB current account for a full quarter, regardless of what lodgements (if any) you make during that quarter, the fees for that quarter will be refunded.

Yes, but I would rarely do that. With KBC, you just have to lodge the money. You can take it out again immediately.
 
My figure is to give an indication of the rough amount saved per year. I think mine would be correct for the period from 6 months to 18 months. It would be less for the first year, and more for the second year.

Yes, assuming the rates don't change (which is a big assumption when it comes to KBC!), the maximum additional interest from months 6 to 18 would be around €338 (after DIRT).

One condition with the account that I don't like is that if you fail to lodge the monthly amount of €2,500 to your Flex Current Account on more than one occasion or close your Flex Current Account you lose the benefits of the Flex Deposit Account (including any bonus interest rates). Even where you recommence lodgements of €2,500 to your Flex Current Account the benefits of the Flex Deposit Account (including any bonus interest rate) cease to apply and may not be re-instated.
 
I have updated and corrected the wording in the best buys for the KBC Flex Regular Saver product. I have a note about what happens if you already have a KBC Regular Saver product and also what happens if you do not deposit at least €2,500 to your Flex Current Account every month.

Good analysis Brendan.

I have volatile income and so might not have €2,500 each month. If I miss one month, I pay fees for the full quarter. So it's not worth changing for me.

You can wire in and out €2,500 each month. It does not need to be fresh new income each month.

Yes, assuming the rates don't change (which is a big assumption when it comes to KBC!)

Yeah, you can bet that this is a promo rate by KBC that will drop in the not too distant future.
 
Yeah, you can bet that this is a promo rate by KBC that will drop in the not too distant future.

Hi Ciarán

So my analysis is a waste of time, if they are going to reduce the rate?

Or maybe it just means you close the account and switch your deposit to whichever bank gives you the best rate.

Brendan
 
Well, you can certainly move your deposit elsewhere but you risk losing the "bonus" interest if you fail to comply with the terms of the account.
 
Really struggling to know if it's worth opening these: I have 15k in existing KBC regular saver and plan on continuing this at 1k per month. I'm not existing KBC current account holder. I'm thinking of opening these, moving in 10k from existing saver, leaving remaining 5k where it is. I'm just concerned KBC will drop rate in six months and all will be for nothing....
 
I am an avid chaser after the best interest rate, but there has been so much change from KBC even I am debating whether this is worth it.

We opened 3 regular savers back in 2014 when the rule said the money had to be paid in by standing order set up from any bank.
Then, the rule changed, and the Reg. savers input had to come from a KBC current account.
We opened a joint current account, and new regular saver accounts, keeping the others dormant (mostly) at a good rate.
Then the rule changed so each regular saver had to be fed from a current account in the same name.
We opened individual current accounts.
We now have 3 current accounts and 6 regular savers. The confusion at times has been draining, making sure each feeder account has enough funds for the date of the standing order.

Can I cope with more current accounts and reg savers?
I have asked whether over 60s would have to deposit €2500 each month to avoid monthly fees. That might be the deciding factor.
Our other KBC current accounts do not cost us anything.
 
Fully agree. The sheer complexity of this product is really off-putting, particularly when the interest rate is not fixed for any period of time (unlike the EBS regular savings offering).

Think I'll pass.
 
Agreed that there is a limit to the level of complexity that one can handle with multiple accounts and multiple wires per month.

Can I cope with more current accounts and reg savers?

Perhaps, KBC will let you change the classification of your existing current account to a Flex current account.
 
do you know if I am going to lose the discount of 0.2% on the mortgage rate if I move from my KBC current account to KBC Flex current account? or KBC flex current account also gives discounted mortgage rate? thanks
 
The Flex Current Account also has a 0.2% mortgage discount, so I would imagine that you would not lose it. However I would strongly advise you to give them a quick call (1800 939 244) just to make sure that it still applies when changing from the existing current account as opposed to being a new customer.
 
Does anyone know if it has to be a single lodgement of €2500 or would a series of lodgements still qualify, for example; lodging €1000, then another €1000 a week later and finally €500 another time, all within the space of the calendar month?
 
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