Confused about rates in Rabo!

Tails142

Ok so I've been saving away and now I've got 3000 saved up


It's now earning a rate of 4.3% in my rabo savings account

I could put the 3000 into a 3 month term deposit for 4.11%

or 6 months for 4.07%

which are both less than what I'm getting in just the normal saving account.


I'm not in the position to lock the money away for anything longer so really I'm just wondering what's the point of rabo having those products available for when they're less competitive?

paulksnn

I haven't checked out the full details Tails, but afaik, the current account has a limit of 20k on the higher interest rate.

Maybe you can put higher amounts in those other two term accounts.Otherwise a lower interest rate for a longer lock in period doesn't make sense.

Idleater

paulksnn wrote: »

I haven't checked out the full details Tails, but afaik, the current account has a limit of 20k on the higher interest rate.

Maybe you can put higher amounts in those other two term accounts.Otherwise a lower interest rate for a longer lock in period doesn't make sense.

The high/low rates now are €1million

I think that the difference is that the term accounts are fixed rate whereas the normal one is variable rate.

The Rooster

Tails142 wrote: »

Ok so I've been saving away and now I've got 3000 saved up


It's now earning a rate of 4.3% in my rabo savings account

I could put the 3000 into a 3 month term deposit for 4.11%

or 6 months for 4.07%

which are both less than what I'm getting in just the normal saving account.


I'm not in the position to lock the money away for anything longer so really I'm just wondering what's the point of rabo having those products available for when they're less competitive?

Interest rates are probably on the decline, so the 4.3% rate could get reduced. If the European Central Bank copied the US and put in a big drop of around 1%, then there would be a strong chance of Rabo reducing the 4.3% rate. If you pick the 3 or 6 month fixed terms, then you are guaranteed that return no matter what happens to interest rates in that period.

BTW, there are 4 or 5 institutions who would give you a better rate than 4.3% on your 3 grand.

Marathon_Man

First Active. 5.22% up to 15K

http://www.firstactive.ie/savings/index.aspx

stepbar

Rabodirect man is shocking quiet these days...........