How often is Rabo interest calculated?

Hi.

I know that my Rabo savings account will have interest added today or tomorrow but I wonder when this is actually calculated and applied or does it make any difference?

I mean is it only calculated and added annually or is it calculated more often. I am not an expert on this but I would have thought that if it was calculated weekly or monthly then surely we should be getting interest on interest?

Make sense?

Thanks for any help.

The interest is calculated daily based on the cleared balance only so you do not get interest on interest. Once a year the cumulative interest from a year's daily interest calculations is added to the cleared balance.

Each day you get 0.05/365 of that day's balance added to the cumulative interest. This calculation can be done in retrospect at the end of the year based on the record of balances held during the year.

Above assumes your balance was <= €10,000. Tomorrow they're introducing a single interest rate.

Just on this topic again

I invested a lump sum of €10,000 into Rabo in July 07 to avail of the high interest rate. Every month I can log in online and view the interest figure that is provided monthly. I am now thinking of moving this lump sum to either Anglo or First Active to avail of their higher interest rates.

If I move the money in the next coming days do I get to keep the interest that I earned since entry point in July 07 or do I have to wait until July 08 to earn the interest on the a/c. If I need to wait I will leave the €10,000 in Rabo until July 08 until the interest is earned and updated onto my a/c and then close the a/c and move elsewhere.

Please advise on this Rabo interest question?

Also what is the next best option if I do withdraw the €10,000? Are there any other decent high interest savings schemes out there that allow individuals to deposit lump sums as well as top ups?

Donnie said:

Just on this topic again
If I move the money in the next coming days do I get to keep the interest that I earned since entry point in July 07 or do I have to wait until July 08 to earn the interest on the a/c.

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The interest on your 10k since July should already have been credited to you. It is applied at the end of the year not one year from when you set up the account.

Thanks General I will move the money out of Rabo tomorrow. Any ideas of a decent high interest alternative?

The best lump sum savings account for you in my opinion is the First Active eSavings account. The AIB online 7 day notice account is almost as good and if you already bank with AIB might be easier to set-up. More details on the range of options in the Lump Sum Savings best buys thread.

There's also a thread for Regular Saver Accounts.

Thanks General.

I already have AIB online banking and also already have an online personal savings plan for the last year and a half now where I save the max €1000 per month. So far its been pretty good and I earn a bonus amount too if I only make one withdrawel per year.

Therefore since I am already with AIB and am used to its easy access and very easy methods of transferring cash I think I will open the 7 day notice savings a/c and invest the lump sum of €10,000.