AIB hike sees savings rates hit 10-year high as it doubles interest paid to savers
The country’s leading bank has put it up to its rivals to respond to a move to double the interest it is paying to savers.
m.independent.ie
AIB & EBS to increase deposit rates including 2% Regular Saver
- Thread starter Lightning
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m.independent.ie
It would seem:
- No change to zero paid on current accounts.
- No change to zero or near zero on instant access lump sums.
- No change to near zero on notice account lump sums.
- AIB Online Saver, AIB Junior, AIB Student Saver rates and EBS Family Savings rates are increasing to 2%.
- EBS Children and Teen Savings rates are increasing to 1.50%.
- New rate of 1.5% on the AIB One-Year Fixed Term.
Thoughts:
--> 50% of deposits are in current accounts - no benefit to todays announcement.
--> Lump sum deposits are the next most popular - no benefit to todays announcement.
--> Term deposit holders make up about 1% of AIB's deposit base. They benefit when they open new term deposits. But rates are still well below other European banks and less than half of what is on offer at Raisin (up to 3.60%). AIB's term deposit rate is still very poor.
--> Nice increase in regular saver rates but you can still get higher rates without the regular saver conditions elsewhere such as with Trade Republic and Lightyear (2.50%). Regular saver rates are still well below where they were at this stage in the ECB rate cycle last time. Anyways, hopefully BoI and PTSB respond.
- No change to zero paid on current accounts.
- No change to zero or near zero on instant access lump sums.
- No change to near zero on notice account lump sums.
- AIB Online Saver, AIB Junior, AIB Student Saver rates and EBS Family Savings rates are increasing to 2%.
- EBS Children and Teen Savings rates are increasing to 1.50%.
- New rate of 1.5% on the AIB One-Year Fixed Term.
Thoughts:
--> 50% of deposits are in current accounts - no benefit to todays announcement.
--> Lump sum deposits are the next most popular - no benefit to todays announcement.
--> Term deposit holders make up about 1% of AIB's deposit base. They benefit when they open new term deposits. But rates are still well below other European banks and less than half of what is on offer at Raisin (up to 3.60%). AIB's term deposit rate is still very poor.
--> Nice increase in regular saver rates but you can still get higher rates without the regular saver conditions elsewhere such as with Trade Republic and Lightyear (2.50%). Regular saver rates are still well below where they were at this stage in the ECB rate cycle last time. Anyways, hopefully BoI and PTSB respond.
Last edited:
podgerodge
Registered User
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So they get the headlines in the media of 2%, even though regular saver restricted to 1k a month, giving c. €130 before DIRT after a year after reaching 12k.
The rate drops to 0.10 per cent after this!
The rate drops to 0.10 per cent after this!
It’s a pathetic return and then the government take a third!
Still grabbing headlines but woefully poor value..
I mean, whats this nonsense about... ...
(From Best Buys thread)
AIB: Online Saver Account
Year 1:
Month 1: 2.00% up to €1,000. 0.10% above €1,000.
Month 2: 2.00% up to €2,000. 0.10% above €2,000.
Month X up to Month 12: 2.00% for month X up to €X,000. 0.10% above €X,000. Where X equals the month number.
End of month 12: Entire balance above €1,000 reverts to 0.10%.
Year 2:
Month 13: 2.00% up to €1,000. 0.10% above €1,000.
Month 14: 2.00% up to €2,000. 0.10% above €2,000.
Month Y up to month 24: 2.00% for month Y up to €Y,000. 0.10% above €Y,000. Where Y equals the month number minus 12.
End of month 24: Entire balance above €1,000 reverts to 0.10%.
Year 3:
Month 25: as per month 13 as 12 month rate cycle recommences.
Why not just increase to 2% on all balances above 1,000. Instead they have come up with this convoluted process.
I mean, whats this nonsense about... ...
(From Best Buys thread)
AIB: Online Saver Account
Year 1:
Month 1: 2.00% up to €1,000. 0.10% above €1,000.
Month 2: 2.00% up to €2,000. 0.10% above €2,000.
Month X up to Month 12: 2.00% for month X up to €X,000. 0.10% above €X,000. Where X equals the month number.
End of month 12: Entire balance above €1,000 reverts to 0.10%.
Year 2:
Month 13: 2.00% up to €1,000. 0.10% above €1,000.
Month 14: 2.00% up to €2,000. 0.10% above €2,000.
Month Y up to month 24: 2.00% for month Y up to €Y,000. 0.10% above €Y,000. Where Y equals the month number minus 12.
End of month 24: Entire balance above €1,000 reverts to 0.10%.
Year 3:
Month 25: as per month 13 as 12 month rate cycle recommences.
Why not just increase to 2% on all balances above 1,000. Instead they have come up with this convoluted process.
The press release/headline is definitely misleading in the sense that the increase affects a small sub set of deposits and is subject to complex T&C's.
AIB have the most complex regular saver product, the PTSB one is a lot simpler.
With AIB you can open up to 4 regular saver accounts. So you can get circa 130*4 before DIRT but it would require a lot of effort and there are far far simpler ways to get a return with other products.
To be fair. companies issue press releases and journalists/news outlets pick up on them and paper never refused ink.
That's why press releases grab the headlines for a fleeting moment even if they're not that newsworthy in the greater scheme of things.
But we urgently need to hear the voice and reaction of the bank's customers in the national media also! Who speaks for US!
I think the point is that journalists should critique what is displayed in the press release, point out the bigger picture and explain what the competition offer.
Similar issue, I'm registered for online banking with them for my CC, so expected opening an online savings a/c would be a doddle, but the stipulation that you need current account (or a 'demand account') is a step too far. I'd end up having to transfer money from my current account to my AIB demand account, and only then to my AIB online savings account. For the benefit of receiving an extra 0.44% before DIRT on 1000 a month, I'll stick with Bunq.
You don't have to have a current account open too. You can open a Demand Account which has zero fees.
As above that's what I tried but they insisted I need a CA to feed it and they couldn't/were unwilling to accept my identity to open the demand account. I can see their point given they don't get any money from me and they don't want the deposit.
Whoever you spoke to is wrong. You don't need a CA to feed it. A Demand Account will suffice as a feed account.
(This is another element of complexity with this product ... the need for a feed account.)
Duke of Marmalade
Registered User
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- 4,687
From the horse's mouth:
I am an online customer. It was easy enough but why do they want my PPSN? And lots of other tick boxes.
I am an online customer. It was easy enough but why do they want my PPSN? And lots of other tick boxes.
I tried to open an account online too. Would not let me as I don't have a current account.
same for a demand deposit account. won't let me open that without a current account.
With bank charges for the current account, and restricted interest amounts, its not worth it. net benefit to me is about 70 EUR. Which is less than 0.5% on the max of 12k I can put into the account.