Ulster Bank launches Reward Reserve account - Variable Rate demand deposit of 4.25%

Irish
Ulster Bank launches Reward Reserve account - Variable Rate demand deposit of 4.25%
By Finfacts Team
Mar 13, 2007, 14:34

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Patrick Farrell, Head of Product Marketing, Ulster Bank

Ulster Bank today unveiled a new deposit account which it says gives customers the most attractive instant access deposit rate available through a branch network. The new Reward Reserve demand account provides customers with a market-leading rate of 4.25% AER**, while also providing customers with the flexibility to access their money.

The new account is ideal for customers who have maturing SSIAs and want access to high interest rates while still retaining the freedom to access their money. By making no more than one withdrawal per quarter and ensuring that the balance does not fall below a €10,000 minimum for more than four days during the same period, customers can avail of a gross variable rate of 4.17% (AER 4.25%) which includes all bonuses (quarterly bonuses of 0.25% and an annual bonus of 0.25%).

The following table outlines how the interest rates offered by the Ulster Bank Reward Reserve product compare with other financial institutions.

Provider	Channel	Access	Gross Rate (Variable) AER	Rank in Market
Ulster Bank	Branch	Demand	4.25%	FIRST
First Active	Branch	Demand	4.06%	2
NIB	Branch	Demand	3.70%	3

(Comparisons are based on competitor offerings as at 12^th March, 2007, for amounts in excess of €10,000 lodged in a branch based institution)

Commenting on the launch of the Ulster Bank Reward Reserve Account, Mr Patrick Farrell, Head of Product Marketing, Ulster Bank said: “Until now, when putting their money on deposit, customers have had to choose between getting a good rate of interest and having the flexibility to make withdrawals to suit their needs. The Ulster Bank Reward Reserve Account allows customers to have the best of both worlds.”

Farrell continued: “Our market leading branch-based interest rate demonstrates our commitment to providing the best value and most innovative banking products to our customers, as evidenced by initiatives such as transaction fee-free banking and 100% mortgages. Our recent €150 current account switcher incentive has energised the current account market, and we expect similar strong feedback to our latest value proposition.”

The Ulster Bank Reward Reserve account is available now through all 124 Ulster Bank branches in the Republic of Ireland.

*The Reward Reserve rate of 4.25% AER is variable with a Gross Rate 4.17%. Minimum amount €10,000. If a customer makes more than one withdrawal in a quarter the rate drops to 2.96% AER for that quarter. If the balance on the Reward Reserve Account falls below €10,000 the rate applicable falls to 0.25%. The higher rate applies once the balance is brought back above €10,000.

**AER = Annual Equivalent Rate - A notional rate which demonstrates what the interest return would be if the interest was compounded and paid annually.