KBC Bank Ireland launches Flexible Savings Product
10 January 2011
KBC Bank Ireland launches Flexible Savings Product
Savings & Investment Report, Sunday Business Post
KBC Bank Ireland launched its new deposit offering on the Irish market in November last and such was the strong interest from Irish savers that the bank has now introduced a new deposit account this week which provides flexibility to savers wishing to access funds during the term of the account.
KBC Bank Ireland undertook extensive research with consumers to understand their needs prior to launching its new fixed rate deposit account. The quantitative research showed that security and access to savings were the most important considerations for savers when choosing a deposit account.
“This is not surprising when you consider the uncertainty surrounding the economy and the very quick and deep recession we have experienced”, said Christine Moran, Director, KBC Bank Ireland. It’s very understandable that consumers are keen to have a nest egg which will cushion them from future shocks but they also want to be sure that they can access it easily in an emergency”.
KBC Bank Ireland’s new One Year Fixed Rate Deposit Account pays an interest rate of 3.50% AER. The account offers savers the flexibility of making one withdrawal up to a maximum of 25% of their deposit during the 12 month period. A minimum deposit of €10,000 is required to open this account.
“We spoke extensively to consumers in an effort to really understand their concerns and their needs. There has been a definite shift in mindset. Investors obviously want to see a good return on their savings, but will not necessarily choose the product offering the best rate. Security and access to savings have assumed greater priority, particularly for families with young children who need to provide for contingencies such as college fees and indeed for older people seeking to have access to cash in their retirement”.
According to Moran, the research confirms KBC Bank Ireland’s own approach to business. “We have always been very clear in our approach. We will not necessarily pay the highest interest rate in the market but we will be competitive. As the research has indicated, savers will balance the expected return against other considerations. What we offer is a sensible and prudent approach which has served us and our customers well”.
Another recent trend seen by KBC Bank Ireland is the desire of savers to have a number of options available to them. “I believe that media coverage and the general debate around the bank guarantee scheme raised awareness among consumers of the need to spread their savings among different institutions. Like many other banks, we have benefited from this willingness by consumers to spread their savings. We are committed to expanding our retail offering in Ireland and we believe that Irish savers will welcome the opportunity to place their savings in a secure and flexible account which is offering a competitive return”, said Christine Moran.
Other deposit rates on offer from KBC Bank Ireland for personal savers are as follows:
| Term | Fixed Gross Rate | AER |
| 3 months | 0.75% | 3.03% |
| 6 months | 1.63% | 3.28% |
| 9 months | 2.63% | 3.51% |
| 12 months | 3.50% | 3.50% |
“As a Bank which is owned by KBC Bank NV, one of Belgium’s largest banks with 13 million customers across Europe, we bring an international perspective to the market but one which reflects our long term presence here. We’ve been doing business in Ireland for over 35 years, primarily in the homeloans market and we have a very strong understanding of the needs of both consumers and businesses. I believe that the financial solutions we provide to our customers are innovative, competitive and, because we listen to them, designed to meet their needs”, says Moran
For information on KBC Bank Irelands’s savings products visit www.kbc.ie or call the customer service team at 01 664 6666
