After a series of slow and steady cuts to its saving rates, RaboDirect Ireland announced in February that it had decided to leave the Irish market.

And today, May 16th, is the date on which the bank has opted to officially close its doors.

Why is RaboDirect leaving Ireland?

A statement from RaboDirect said that the online savings bank was leaving the Irish market as part of a move to simplify its business model and to reduce costs.

The decision was made by the bank’s parent company and appears to be a reaction to changing conditions across Europe.

Who is affected?

RaboDirect Ireland had 90,000 customers with an estimated €3 billion on deposit when it announced that it was leaving the Irish market.

Customers with notice saver accounts had their notice periods waived and received their interest earned right up to the point of account closure. And term deposit account holders received all of the interest that would have been paid on deposits over their full term.

RaboDirect once offered some of the best rates in the Irish market, but the bank's 90,000 customers are likely to have been disillusioned when they began their search for a new home for their cash.

What are the best savings accounts available at the moment?

Savings rates at an all-time low right now and with DIRT at 37%, decent savings account options are few and far between these days.

In fact, the reward for putting €10,000 away for a full year with most banks wouldn’t even fill a petrol tank in Ireland.

Here are two tables which outline some of the best options available from traditional lenders, but the best way to find the best options for you is to compare savings accounts.

€10,000 locked away for one year with no access:

Bank	AER	Interest	Interest after DIRT (37%)
KBC	0.50%	€50	€31.50
Permanent TSB	0.50%	€50	€31.50
EBS	0.35%	€35	€22.05
Bank of Ireland	0.25%	€25	€15.75

€300 put away every month for 12 months:

Bank	AER	Stipulation
KBC	2.50%	KBC current account required (otherwise 0.50%)
EBS	1.75%	Restricted access
Bank of Ireland	1.20%	Bank of Ireland account required, online banking required, restricted access
AIB	1.00%	AIB current account required

Alternatives to savings accounts

With so few attractive options available, more and more customers are considering investment as the best place to put their savings to work.

Just this week, we learned that a massive €31 million was deposited into Irish Life's Multi-Asset Portfolios, which are a type of investment fund, every week over the last year.

We recently spoke to the Founder of Moneycube - an Irish company, which is regulated by the Central Bank of Ireland - about some of the alternatives to traditional savings accounts that are available to Irish customers.

Another blow to Irish savers

RaboDirect's departure from the Irish market is another blow to Irish savers, who have had nothing but bad news from traditional lenders for the last few years.

The bank's 90,000 customers are likely to have found it very difficult to find a traditional savings account that offered anything close to the rates that they once received from RaboDirect.

However, if there is a silver lining, it may be found in the fact RaboDirect's departure has likely prompted customers to actively seek a new home for their savings, and many may now be in a better position than they were in recent months.

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RaboDirect Ireland closes its doors