First Active eSavings - Watch out on the 15k

H

homer911

Registered User
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Just a word of caution to all in case you havent noticed. The 15k limit for the top rate of interest is rigouresly(?) enforced by First Active, but more sneakily, if you lodge 15k by cheque, when the account is opened they capitalise interest for the delay in processing (rather than back date the value date). This has the effect of throwing your balance over the 15k and getting you less interest
 
First Active said:
  • Customers will earn 5.22% AER* on amounts up to €15k
  • Customers will earn 4.07% AER* on amounts over €15k
Click to expand...

So not sure i get your word of caution if i have read you correctly and understand the FA rules clearly..
 
There is a table in this [broken link removed]of First Active website talking about balances
  • Balance from €0 to €15k = 5.22%
  • Balance from €15.001 to €1m = 4.07%
so to me the 5.22% is applicable on the first €15k, and anything above €15k is at 4.07% (but no the lot)

Rabo has a similar wording oth their website for instance
Rabo Web Site said:
a great rate of 5.0%* on balances up to €10,000 and a rate of 3.75%** from €10,000 to €1 million.
Click to expand...
 
I think Bacchus is quoting from outdated First Active site. Their current website clearly states if the balance goes over €15,000 a rate of 4.33% applies to the entire amount. It is therefore very important savers watch the €15,000 limit. I think was discussed at length here before.
 
oldtimer said:
I think Bacchus is quoting from outdated First Active site.
Click to expand...

What a great mess this FA website, you are right Oldtimer.

Here is an [broken link removed]FA web page that says

Get a great rate of 5.22% AER variable*
(4.33% applied to entire balance where the eSavings Account balance is between €15,001 - €1,000,000).
Click to expand...
 
Despite what First Active say on their web site they are applying the lower 4.33% (applied to entire balance) rate once the balance hits €15,000.

This thread discusses an example of this that occurred on my account.
 
Pardon me if this sounds stupid. I opened an account with a cheque for 15k. As soon as I earn any interest obviously this figure will rise. By what everybody is saying in this thread, should I keep an eye out everytime interest is added and immediately withdraw it to keep the figure below 15k? Also, because I opened the account with 15k does that mean I'm on the lower rate of interest (because my balance is NOT <15k)?
 
PetPal said:
Also, because I opened the account with 15k does that mean I'm on the lower rate of interest (because my balance is NOT <15k)?
Click to expand...

Yes. You are only getting 4.33% AER not 5.22% AER if you opened the account with a cheque for €15k.

First Active should compensate everyone that's lost out because of this and start calculating interest in the manner they say they do on their website.
 
Also, because I opened the account with 15k does that mean I'm on the lower rate of interest (because my balance is NOT <15k)?
Click to expand...

Yes. If you had read the advice given by other AAM members on the thread, you'll find the best advice was to lodge something like €14k and withdraw the interest once the balance started to edge towards €15k...

So what you should do ASAP is withdraw €1k from the esavings a/c.
 
I've withdrawn €1 to bring the balance to €14,999 and will log in each month just before the interest payment to transfer out enough to keep it below that level.
 
GeneralZod said:
Despite what First Active say on their web site they are applying the lower 4.33% (applied to entire balance) rate once the balance hits €15,000.

This thread discusses an example of this that occurred on my account.
Click to expand...

Surely, though, we must be able to do something about this, legally. I mean, if they're saying on their website that they will pay the higher rate on amounts up to €15,000 and the lower rate on amounts from €15,001 to €1m - and then they're doing something entirely different in reality - that must be false advertising. No?
 
I think they have it quite clear on their website that the entire amount drops to 4.33% when €15,000 is exceeded. I would say a lot of savers are falling into the trap here of not watching the cut-off. I think it is bad policy of First Active to apply this cut-off. They should operate like Rabodirect i.e. first €10,000 at 5% and above that amount at 3.75%. That way the first €10,000 always gets 5%. Does First Active give any warning when the €15,000 amount is exceeded?
 
GeneralZod said:
I've withdrawn €1 to bring the balance to €14,999 and will log in each month just before the interest payment to transfer out enough to keep it below that level.
Click to expand...

Hi General, do you withdraw 60 Euro from the 14,999 before the interest is paid? To me that's the reassuring break-even point... What's your opinion pls?
 
Godfather said:
Hi General, do you withdraw 60 Euro from the 14,999 before the interest is paid? To me that's the reassuring break-even point... What's your opinion pls?
Click to expand...

Godfather, yes €60 is the amount I had in mind as there'll be some months where the number of days between payments will exceed 30-31 days. e.g. Long month and last day of previous month not falling on a working day.
 
This looks pretty clear to me (from First Active eSavings FAQs):
What interest rate will I get if my balance goes over €15,000?If the balance of your savings is €15001 or above you will get an AER of 4.33% on the whole balance.
Click to expand...
Suppose "whole" is the operative word. Though, on reading again, I agree it's not entirely clear. "Whole" could mean the balance over €15,001. The lengthy debate on AAM clarified it for me.

I've just sent FA an email asking what the rate will be in 2008 - adding that there wouldn't be any point in opening an account now if their rate won't be better than the competitors. A bit cheeky - it'll be a surprise if there's a reply.
 
sherib said:
This looks pretty clear to me (from First Active eSavings FAQs):

Suppose "whole" is the operative word. Though, on reading again, I agree it's not entirely clear. "Whole" could mean the balance over €15,001. The lengthy debate on AAM clarified it for me.

I've just sent FA an email asking what the rate will be in 2008 - adding that there wouldn't be any point in opening an account now if their rate won't be better than the competitors. A bit cheeky - it'll be a surprise if there's a reply.
Click to expand...

Hi guys,

if it's not clear:

Up to 14,999 Euro the higher interest, from 15,000 (including 15,000) the lower...
 
Can I repeat again from the website '' Up to €15,000 interest is 5.22%. Amounts greater than €15,000 interest is 4.33% on the entire amount.'' In simple terms as long as one has up to €15,000 on deposit the entire amount earns 5.22%. When it goes €15,001 on deposit the entire amount will earn 4.33%.
 
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