AIB Online Saver A/c Query

SmallTeapot

Hi all,

Kind of a weird query, but the curiosity is beating me down

I was just reading up on a link from askmoney which was posted on another thread from a few weeks ago seeking advice on savings a/c options.

The following advice was outlined re the Online Saver account with AIB

AIB: Online Saver Account
Year 1:
Month 1: 2.00% up to €1,000. 0.15% above €1,000.
Month 2: 2.00% up to €2,000. 0.15% above €2,000.
Month X up to Month 12: 2.00% for month X up to €X,000. 0.15% above €X,000. Where X equals the month number.
End of month 12: Entire balance above €1,000 reverts to 0.15%.
Year 2:
Month 13: 2.00% up to €1,000. 0.15% above €1,000.
Month 14: 2.00% up to €2,000. 0.15% above €2,000.
Month Y up to month 24: 2.00% for month Y up to €Y,000. 0.15% above €Y,000. Where Y equals the month number minus 12.
End of month 24: Entire balance above €1,000 reverts to 0.15%.
Year 3:
Month 25: as per month 13 as 12 month rate cycle recommences.
Minimum per month: €10 per month.
Maximum per month: None but €1,000,000 is the maximum account balance.
Access: Instant access.
Fees: None.
Lodgement method: Standing order mandatory. Ad-hoc lodgements possible in addition to the mandatory standing order.
Minimum period: None.
Interest type: Variable.
Interest payment frequency: Annually. Interest is paid annually in April.
Maximum number of accounts per person: Four.
Online only.
You must have a second separate 'suitable' AIB account both lodgements and withdrawals. This can be a 'Demand Deposit' account or a current account. A current account may incur fees.
NB: At the end of the 12 months the account interest rate will change to 0.15% for amounts over €1,000.
NB: You are best withdrawing all sums above €1,000 at each annual anniversary of account opening.
Deposit Protection: €100,000 via Irish Deposit Guarantee Scheme.

I'm slightly at odds as to what the bolded bit means...do they recommend withdrawing all cash from the a/c at the end of every yearly cycle?

So say for example, you lodged the maximum €1000.00 to avail of the 2.00% AER every month over a 12 month basis; do they recommend that you then should withdraw the €12,000.00 (+interest) at the end of the savings year, as otherwise any future €1000.00 lodgement would only accrue aer of 0.15% (rather than the 2.00%) if it were to be added to the original €12,000(+interest) balance

Hopefully someone may be able to explain this to me. :pac:

Thanks

28064212

At the end of the first year, you will have €12,000 (+interest). For the 13th month, you will earn 2% on €1,000, and 0.15% on the remaining €12,000(+i). For the 14th month, you will earn 2% on €2,000, and 0.15% on the remaining €12,000(+i), and so on

So after each year, you are better off taking the 12,000(+i) and putting it in a deposit savings account where you'll get a better rate than 0.15%.

SmallTeapot

Ah, perfect! Thank you 28064212

KevinK

I have a query about this account if anyone can help..


I have this account a every month get a notice on my online account saying interest rate @ 2% up to x, 000.


This began at 2% up to 1, 000 and last month reached 2% up to 12, 000. I expected this to return to 2% up to 1, 000 at the beginning of this month (the 13th) but instead it has stayed at 2% up to 12,000.


Have terms of this product changed? Or is this just a mistake on online banking? Can anyone else with this account say if it happened to them?

JTMan

It is a mistake or a timing issue. It will reset. Maybe you are a few days from reset.

The rate changes are based on monthly cycles. i.e. If your first deposit was on the 10th, then the rate will change on the 10th of each month or around the 10th taking into account weekends.

The deposit period is based on calendar months. i.e. You must deposit at least 10 EUR per calendar month.