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Rabodirect Question

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  • 19-11-2014 9:57am
    #1
    Digital Society
    Registered Users Posts: 972 ✭✭✭


    Can anyone tell me the point of transferring savings into a Rabodirect account rather than just leave it in the Credit Union?

    I have a deposit for a house there but wont be buying for 3 years so cant take any risks with it. Just heard an ad on the Radio and wondering whats the benefit of a so called "Savings Specialist"?


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    #2
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    Is there a guaranteed savings rate in the credit union or is it just a dividend?

    "Savings Specialist" is just marketing speak in my opinion..


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    #3
    Digital Society
    Registered Users Posts: 972 ✭✭✭Digital Society


    So no other benefit apart from an interest rate which actually seems low to me anyway at 1.5%.


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    #4
    okiss
    Registered Users Posts: 698 ✭✭✭okiss


    I would advise you to look at the rates on a regular savings account with the different banks. These accounts allow you to save x amount per month. In 12 months time you can put what you saved into the credit union or into a fixed term account with a better interest rate.

    If you look up www.consumerhelp.ie, click on financial product comparisons and then on regular savings.
    You can then put in the amount you want to save a month & find out the interest you can earn. Just be aware to read the small print on this as some will pay a higher rate up to x amount but once your over that the rate falls.

    Also in 12 months time see what the rates are to get the best return possible on your savings.


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    #5
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Digital Society wrote: »
    Can anyone tell me the point of transferring savings into a Rabodirect account rather than just leave it in the Credit Union?

    A higher interest rate.
    Digital Society wrote: »
    I have a deposit for a house there but wont be buying for 3 years so cant take any risks with it. Just heard an ad on the Radio and wondering whats the benefit of a so called "Savings Specialist"?

    A load of marketing nonsense by the bank that claims not to talk nonsense! The rate is what matters.


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    #6
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Digital Society wrote: »
    So no other benefit apart from an interest rate which actually seems low to me anyway at 1.5%.

    1.50%??

    Rabo pay 1.95% on their 90 day notice account. Rabo pay 1.75% up to 20k on their instant access product.


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    #7
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    okiss wrote: »
    I would advise you to look at the rates on a regular savings account with the different banks.

    The OP has a lump sum to deal with. A regular saver account won't accommodate a lump sum but granted you can drip feed the lump sum into it.
    okiss wrote: »
    In 12 months time you can put what you saved into the credit union or into a fixed term account with a better interest rate.

    Why would you move it after 12 months (unless the rate is no longer competitive)? You can save for years in most regular regular saver products.


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    #8
    Digital Society
    Registered Users Posts: 972 ✭✭✭Digital Society


    Is it even worth taking out of the credit union? I thought the credit union had a better interest rate. Cant see exactly what it is but ive been told on askaboutmoney its about a 3% dividend annually.


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    #9
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Digital Society wrote: »
    Is it even worth taking out of the credit union? I thought the credit union had a better interest rate. Cant see exactly what it is but ive been told on askaboutmoney its about a 3% dividend annually.

    There are over 100 Credit Unions around Ireland.

    The dividend varies but most pay a zero dividend or very close to zero.


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    #10
    badgerbroc11
    Registered Users Posts: 141 ✭✭badgerbroc11


    JTMan wrote: »
    There are over 100 Credit Unions around Ireland.

    The dividend varies but most pay a zero dividend or very close to zero.


    There are 368 credit unions affiliated to the Irish league of credit unions and about 10 or 15 more nit affiliated. The majority pay dividends each year


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