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Rabo Direct Interest Rates (Savings)

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  • 25-01-2008 3:08am
    #1
    Sqaull20
    Registered Users Posts: 2,044 ✭✭✭


    I have a decent amount of cash in my bank of ireland account (over €20,000) and I am getting peanuts for it....

    I have been looking around at online banks, Rabo Direct in particular are giving out 4.30%....

    I have heard horror stories of online banks going bust and would like to know are (Rabo Direct) they safe?

    Or are they better alternatives or should I just leave my money in BOI....


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    No online bank has gone "bust" yet. Northern Rock are a large English physical bank who operate an online operation in Ireland. It ran into trouble due to circumstances that it found itself in due to it's own behaviour. However it's still in business and no one has lost their money

    RaboDirect is part of Rabobank, itself a huge Dutch banking group which also owns the ACC in Ireland. Like most of the major high street banks, it's unlikely to disappear anytime soon. In fact it's one of the higest rated banks out there.

    All savings in any bank will be covered by the relevant national deposit scheme. Research this, and the best rates you can get before you put money in any bank. Shop around :)

    Basically - don't be put off one type of saving simply because Northern Rock hit a glitch, nor should you ignore the domestic banks, some of whom may have some good products out there (First Active has been mentioned quite a few times on this board recently.


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    #3
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    I wouldn't bother with Rabo. The best (at the moment) are AIB, First Active and Halifax and are all around the 5% mark, although Halifax only pay the 5% for the first year and then drops. All of them have maximum amounts of 10K, 15K and 10K respectively. (you can always open an account with each and split the money). Any money over the above limits will earn interest at a more standard rate (ie around 3.5%)

    If you do go with Rabo, don't be worried about security. As already mentioned, they part of a much bigger bank than any that exist in Ireland. Their website is secure and and your deposit is protected by the state (not all of it, but a large percentage (I think around 90%). The bull$hit about Northern Rock was just tabloid journalism. All the people queuing to get their money out had nothing to fear, as Northern did have reserves (just not as strong as they liked) and Gordon Brown assured savers they were 100% covered by the state.


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    #4
    The Rooster
    Registered Users Posts: 4,508 ✭✭✭The Rooster


    Again top marks for Rabo's marketing!

    They only offer 4.3% - there plenty of places out there with 5% plus. Many do have a 10k or 15k limit, so you'll need to open two accounts to get the best deal for your 20k, but thats not a big issue.

    First Active are the best at 5.22% - just be careful not to go over €15k.

    If you want to "play" with a couple of grand, then the RaboBank Investment account is a very handy (and low fee) way of getting into managed funds.


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