Anglo Irish Bank 7% Regular Savings Account V Rabo Direct

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pthedj

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I have just joined up with Rabo Direct & intend putting my SSIA funds there & to continue saving but heard a lady on Today FM this morning mention Anglo Irish's 2 Year Regular Saver Account which is giving a 7% return on regular monthly savings of €100 - €1,000 per month.They do'nt pay interest on lump sums investments but that rate seems to be one of the best around apart from AIB's which has less of a cap.Does anyone know of any catches with the Anglo Irish deal - I'm thinking of leaving the lump sum in with Rabo & then continue regular savings with Anglo to avail of the better rate there, or is there a better option ?
 
The following is from their website:

"Gross p.a. variable
(CAR 7.0 %)"

"The minimum monthly savings amount is €100, the maximum monthly savings amount is €1,000 per applicant, for a term of two years."

"Your monthly saving contribution can only be made by electronic transfer. Cheques are accepted as initial lodgements only, all future savings contributions must be made by electronic transfer. Your initial lodgement must be received within 30 days of account opening. We cannot accept transfers from an existing Anglo Irish Bank deposit account that you hold with us."

"If more than €1,000 is lodged to your Regular Saver Account in any one month, the surplus amount will be transferred to an Easy Access Savings Account."

"The Account Holder is responsible for ensuring the correctness and accuracy of all payment instructions and the Bank does not accept any responsibility or liability in respect of same."

"Only one regular saver account per applicant is allowed"

"The interest rate is variable with a minimum rate of 4.5% CAR. Details of the applicable interest rate are available upon request."
 
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How much has pthedj in Rabo account? Bear in mind the 5% applies to first 10K only. Also bear in mind monthly saver accounts are totally different than lump sum accounts e.g. the 7% only applies to the monthly amount invested. Anglo Irish Bank at 7% is very good but bear in mind the terms and conditions. In fact, in my opinion, Anglo Irish is the most restrictive e.g. you can close the account anytime but no withdrawals allowed. Also bear in mind they guarantee 4.50% so could change the 7% anytime. Anglo do take lump sums also and their monthly account offering 4.50% not bad. Keep an eye on financial institutions over the next week or so as they decide on increasing their rates following the latest ECB rise.
 
"How much has pthedj in Rabo account?"

Nothing yet,account just opened but I'm going to lodge less than 10K there anyway.

"Anglo Irish Bank at 7% is very good but bear in mind the terms and conditions. In fact, in my opinion, Anglo Irish is the most restrictive e.g. you can close the account anytime but no withdrawals allowed"

Unless something comes up within the 2 years that I really need access to the money I do'nt mind, I've just managed to save the SSIA for the past 5 years without been able to make withdrawals so I'm sure I'll be ok for another 2.

"they guarantee 4.50% so could change the 7% anytime"

Now that would annoy me ! Is there anyone that would guarantee 7% for at least 2 years ?

"Keep an eye on financial institutions over the next week or so as they decide on increasing their rates following the latest ECB rise."

So am I better off waiting 2-3 weeks before deciding to open a new Savings account & see who offers the best rates, or just push ahead with Anglo ?
 
pthedj said:
"they guarantee 4.50% so could change the 7% anytime"

Now that would annoy me ! Is there anyone that would guarantee 7% for at least 2 years ?
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I don't think so. Ony the regular saver accounts from various institutions are offering c. 7%. You'd need to check the various terms & conditions to see what sort of rate guarantees are offered. A lot of this is summarised in the Financial Best Buys forum for your convenience.
"Keep an eye on financial institutions over the next week or so as they decide on increasing their rates following the latest ECB rise."

So am I better off waiting 2-3 weeks before deciding to open a new Savings account & see who offers the best rates, or just push ahead with Anglo ?
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I don't think that the recent ECB rate increase will impact the regular saver rates which could well be set initially high to capture post SSIA savings but then may reduce within the year. Many institutions have already clarified their plans to pass on the recent ECB rate increase in part or full on other deposit accounts. Again keep an eye on the Financial Best Buys lists for updates.
 
I agree with Clubman. Doubtful anybody will offer 7% for 2 years. Over the long term the nearest and best could be Bank of Ireland who offer ECB rate + 2.75% for 18 months, so their regular saver will now go to 6.75% and if there is another ECB increase you will get your 7% and indeed it could go above it if ECB rates continue. The terms and conditions with Bank of Ireland are not as restrictive as Anglo e.g. they allow withdrawals. On the other hand you can only save to a max of €500 if you didn't have your SSIA with them. If you had your SSIA with them you can save up to €1000 per month. Of course you can double these amounts by opening accounts for your spouse as well.
 
Why not open a few accounts - i first took up the AIB regular monthly saver option (capped at €300) before SSIA ended, stuck lump sum in rabo direct and recently opened regular savings account with Halifax (7% variable) (two withdrawls a year up to €750 per month. The savings accounts good for continuing savings habit. Kept lump sum for easy access in Credit Union where tend to get a dividend of 3% most years (less dirt tax) If want to drip feed into a regular savings from a lump sum try try put lump somewhere where you are still getting some interest while it is being drip fed.
 
Thrifty said:
Kept lump sum for easy access in Credit Union where tend to get a dividend of 3% most years (less dirt tax) If want to drip feed into a regular savings from a lump sum try try put lump somewhere where you are still getting some interest while it is being drip fed.
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Why not put it in Northern Rock where you'll get 4.5% for on-demand cash ?
 
I opened an Anglo Regular Saver A/C a year ago when the interest rate was 5% & I've no problems endorsing it. Its certainly the most attractive rate available & if you can maximise the input (2K per month) & lock it up for 2 years you will get a decent return. With the ECB by all accounts set for another couple of rises by December I suspect the interest rate on this account to go up another .5% this year.
 
There is no guarantee Anglo Irish Bank will maintain the 7%. Their only guarantee is a minimum rate of 4.50% so they can change anytime. And bear in mind Anglo did not increase the 7% following the last ECB rise so don't hold your breath for ''this account to go up another .5% this year.'' Also they allow no withdrawals - once you withdraw the account is closed. The new EBS regular saver would appear to be better i.e. easy access to your cash and guarantee ECB+3% up to 1st April 2008.
 
oldtimer said:
The new EBS regular saver would appear to be better i.e. easy access to your cash and guarantee ECB+3% up to 1st April 2008.
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...but lodgement must be made by direct debit only, so you are commited to lodge same amount every month...

No the case with Anglo as you can wire the money at your own pace, (with max of €2000 per month for joint a/c). So could be €500 one month, €1000 the following one, etc.... but no instant access as you said.

Very similar products IMO, choice depends on personnal needs..
 
I can only account for my experience with this account over the past year, in that time the interest rate has increased from 5% to 7%, Anglo have not increased the rate every time the ECB have, they have waited for 2 ECB rate increases before raising the rate by .5%. They may indeed change the rate at any time but I suspect this to be unlikely in the short term with many institutions offering similar favourable rates. These are the chances you take! Its obviously not suitable for anyone who wants easy access to their cash.
 
As I said before study terms and conditions and after that select the one to suit your personal needs.
 
No sign of either Anglo or Rabo increasing their interest rates as yet, following the most recent ECB rate rise .... disappointing !

Anyone made enquiry to either institution ?

Regards

G>
 
I was wondering the same myself. Rabo normally keeps a watching brief on this site. I have a Rabo account, well? Rabo are you out there?????????
 
I think Rabo wanted love like the money being visited in the advert but some questioning critical posters scared him/her off :p
 
The current RaboDirect rate is 5.0% (a hefty premium over and above the prevailing ECB rate) for amounts up to €10,000. For amounts over this the rate is 3.75%. Note - this is for money on demand and there are no restrictions on withdrawals.

We believe that our rates and the terms on which they are offered are very competitive, particularly the 5% rate. Of course in a very competitive market that we operate in (and that we have played a major role in stimulating) the customer has a diverse choice of rates and has many options to choose from which is a huge improvement on the past.
 
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