Will I lose interest accrued if I move from Rabo now?

M

marshmallow

Registered User
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Hi, to existing Rabo customers - this might sound like a stupid question but I want to move funds from Rabo to a fixed term deposit account and was planning to do this asap, however no interest has yet been posted to my Rabo account and I wondered if I moved existing funds now does that mean that I will lose the interest earned up to now?
Many thanks
 
Re: Moving funds from Rabo before interest is posted?

I doubt you'd loss the interest. I think they only apply the interest at the end of the year...

S.
 
Re: Moving funds from Rabo before interest is posted?

You should not loose any interest if it is accrued daily. Check the T&C or ring Halifax. Best to set up the Term Deposit before the big ECB cut on Thursday.
 
Re: Moving funds from Rabo before interest is posted?

So the interest will still be posted at the end of the year, even if I moved most of the funds out? Wasn't sure how it worked as there is no interest in the account yet I can see how much is accrued so far. Thanks
 
Re: Moving funds from Rabo before interest is posted?

From RaboDirect's online [broken link removed]:
When do I start earning interest? Fairly quickly actually! You receive interest from the same day as the clearing processing date money is deposited. If you withdraw money, you receive interest right up until your money leaves your account.
Click to expand...
 
Thanks Dr Moriarty, I had a look at their FAQs but found them quite confusing. So does this mean that I can also withdraw the interest earned so far? How can I do this when it hasn't been posted yet?
 
I would imagine interest is paid at the end of the year OR on closing the account if done before the end of the year. Best to ring them to confirm though.
 
I transferred all the money from my normal Rabo account to a Rabo fixed term account a few months ago. The amount of interest earned on my normal Rabo account over the previous months did not drop to €0 after doing this. The interest earned has continued to grow since I started lodging money into my normal Rabo account each week. For the past couple of years the interest has been added on January 1st or 2nd to normal Rabo accounts. I assume the interest is added to fixed term accounts the day they expire.
 
In my experience Rabo calculate the interest payable at the end of the year/v. early january. They calculate it on the basis of a cumulative summation of the interest earned for each day of the previous year. The daily amount of interest earned is 1/365th of the balance for that day multiplied by the gross interest rate). That's the same basic calculation that is very widely used by other banks. So you don't lose by withdrawing from their demand account.
 
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