Savings accounts are an important addition to any financial budgeting process. It creates a bit of a buffer where emergencies are concerned and helps customers focus less on debt to get out of trouble. It also happens to be the first step in wealth creation, which is important for those who wish to experience financial freedom. Rabobank Savings provides customers with a few worthy options, but are they enough to pull the bank through for a perfect rating?
Compare this product range to that of Bank of Ireland.
Rabobank was started in the Netherlands by a few farmers that saw the need for an agricultural bank, because of the endless struggle for farmers to secure financial assistance from regular banks. Through excellent service and innovative banking service, Rabobank has grown into the second largest bank in the Netherlands. Rabodirect is all over the world with branches in Ireland, Wales, New Zealand, Australia and many more. Today Rabobank is a multinational bank headquartered in Utrecht, Netherlands and known for their keen interest in sustainable farming practices.
Savings Accounts Features
Savings accounts are slightly different to investments and they are also different to current accounts. They can safely be classified as somewhere in between.
No Risk and Usually bank Guaranteed
The good thing about a savings account is that there is generally no risk involved. There is no volatile market to consider and the interest rates are usually competitive. Furthermore, capital tends to be guaranteed up to certain amounts in many countries. With savings accounts, it would take an entire market crash or shutdown of the bank entirely to warrant losing any funds in a savings accounts.
There Are Different Types for Different Needs
Customers often have a pick of accounts and these can include those for the short term which means the funds are accessible. There are also those that lock in the funds for a period of time, which means that early access could generate penalties.
They Tend to Have Lower Fees
These accounts are amazing for those who want to save a bit on banking fees, while still having a safe place to deposit their cash. Furthermore, many of the banks offer free savings accounts in order to attract a bigger market share and hopefully onboard customers who may require additional banking products.
Easy to Open
Customers are not required to have a clear credit record or banking track record in order to open a savings accounts. This is because there is virtually no risk to the bank with these accounts. The flip side is that they also don’t build a reference for the customer as there are no additional facilities on them, such as an overdraft or the use of checks.
They also has a range of current accounts on their books.
Rabobank Savings Product Offerings
This bank offers an array of saving products, to help you save for a holiday, add to your pension fund, to pay debt and whatever you need money for. Let’s look at the different saving options available from Rabobank.
Rabo Internet Saving
This is an easy savings account to manage, you can transfer funds back and forth as you please.
- Money can be transferred to and from our Rabobank Current account as often as you want
- For this account, a variable interest rate of up to 0.5% is calculated, depending on your credit balance.
- This account will be accessible on the internet only, like your laptop, mobile or tablet. You will not be able to withdraw your savings unless you transfer it to your Rabobank current account first and the use your card to withdraw it.
Rabo Savings Account
This is a pretty straightforward account that will give you the ability to save easily and steadily.
- The Rabo Savings Account can be accessed from the Banking Machine, Internet banking or with transfer forms from another bank.
- You can deposit and withdraw as often as you need to
- The interest rate on this account is calculated at 0.5%
- You are not limited to a minimum deposit so you can start saving at any time
- Should you need to make a withdrawal of more than € 1000 at any time, a notice period of three days will be required
Period Savings Account
This makes it a little more cumbersome to make a withdrawal, thus encouraging you to save more.
- You have to give a 30-day or a 90-day notice of withdrawal, depending on what period option you selected.
- At the end of the notice period, your savings will be automatically transferred to your Rabo current account or another account specified by you.
- The interest rate on the period savings is 0.10% on a 30-day notice account and 0.15% on a 90-day notice account, making the return on your savings even better.
- It is advisable that you have different periods so that you leave a buffer amount on your period savings, in case you need money urgently.
Rabo Target Savings
This account is for you if you consider long-term saving. This savings method allows you to determine the period of saving.
- You can decide for how long and how much you want to save within the agreed period.
- the period is between 1 and 20 years.
- Each deposit earns its own interest
- You can earn a fixed interest of up to 1.8%.
- The entire amount can be withdrawn at the end of the period selected by you and you will select your preferred account, which the savings and accrued interest will be transferred into.
- As soon as 8 weeks before the end of the term you will be allowed to indicate where you want the savings to be transferred to.
- Should you decide not to make any arrangements, the savings will remain in the account and will then earn a variable interest rate.
Rabo Power Saving Account
It allows you to make a rather large deposit en then make withdrawals at the end of every year.
- Your first deposit is rather high, at a minimum of € 250,000.
- A variable interest on the balance up to € 10 million.
- You will be able to withdraw up to 25% of what you saved in a year.
- They calculate interest daily, and therefore you do not lose out on any interest.
- You will receive a printed account statement once a quarter if there has been a transaction if there was a transaction during that quarter.
- Private persons or by approved legal bodies can open this account.
This savings account is quite an interesting one, it allows you to make a once of deposit for a fixed term of 1-20 years.
- You cannot withdraw or add to this account during the period that you selected
- On the due date at the end of your selected term, they transfer the money automatically from your savings to a previously specified pay or savings account.
- Customers can redeposit your savings, should they not need it. They simply give notice of one working day in advance of the expiry date of the term.
- Should you choose to redeposit your savings, this calls for a new agreement.
What We Like About Rabobank Savings
We need to just glance over a few product highlights, and hopefully, this will give you a clearer insight into the general characteristics of the Rabobank Savings.
- Rabobank Saving Accounts carry no costs. This is because your savings account links to your current account.
- You have to have a current account in order to use any of the Savings products.
- Rabobank savings have received a five star rating from MoneyView and therefore you know that your savings is in good hands.
What We Don’t Like About Rabobank Savings
Rabobank is a great institution, but there are certain detractors from some of the products. With the Power Savings Account, the initial deposit must be € 250,000. This is a bit steep for a lot of people. On variable interest, it becomes a bit vague. Consumers then have to actually read the terms and condition in order to get a better picture of the interest rate.
Find out what Rabobank has in terms of their insurance products.
Critical Reviews Rating Rabobank Savings – 8 of 10
There are a number of great products on this list. Rabobank impresses with a selection that varies from fixed to variable. However, the variety is a little sparse and on the back of other product ranges. Those seem to knock competitors out of the park, this one feels thin.
We also have to consider that the interest calculations are a little bit confusing. The high entry deposit for the Power Savings Account is also not something we can ignore. It excludes quite a large portion of the population. Sure it adds a bit of exclusivity, but leaves many without the option.
Rabobank is very upfront with fees and terms and conditions. This is something that allows us to go into a review with peace of mind. A few small changes and this bank could easily enjoy a perfect rating on this product range.
We recently did a review on the savings accounts offered by Societe Generale.