Ibanesto raises Blue Account to 6.10% APR for six months

Ibanesto's Blue Account pays 6.10% APR, but only for six months

Ibanesto has moved against ING Direct with a rate hike that, on paper, leaves the orange bank behind. The Blue Account now offers a 6.10% APR for any balance, starting from one cent, and for six months instead of the five offered by its direct competitor. However, the fine print dampens enthusiasm: that 6.10% is the APR, and the underlying annual nominal rate is 5.94%, applicable only until January 31, 2009.

From February 1, 2009, the product deflates to a 3.44% annual nominal rate, with an APR of 3.5%. Interest is settled monthly and subject to an 18% tax withholding for residents in Spain—15% in Navarre—. The Blue Account is also non-transactional: it does not accept direct debits. The reference accompanying the promotion, R.B.E. 958/08, clarifies the conditions from the first page.

Who actually gets the 6.10%?

This is where things get complicated. The offer does not specify whether existing customers at 5.5% are automatically updated or excluded. Some argue the rate applies to everyone because the terms do not state otherwise; others defend the opposite, claiming it trinc ING's scheme: new clients or balance increases only.

The most pessimistic version circulates in detail: existing customers could only contract the Blue Deposit at 6.1% for new deposits, while their account remains frozen at 5.5%. Phone support hasn't helped resolve the doubt; some callers find themselves with operators unable to clarify if old customers stay at 5.5% or move to 6.1%. It is the kind of ambiguity banks resolve in a brochure... or a complaint.

Blue Deposit: Monthly interest or at maturity?

The Blue Deposit is presented as the alternative for existing customers. One user attributes two antiestéticatures that separate it from ING's equivalent product: interest is paid monthly and there is no need to hold the position until maturity. The former reads as an advantage—received funds start earning—and a disadvantage: with the same APR, monthly accrual implies a lower nominal rate, and each payment passes through the tax authority sooner.

The reasoning is simple but counterintuitive. Two deposits with the same APR, one paying monthly and the other at maturity, leave more net interest in the latter. The APR already incorporates theoretical reinvestment, so the difference goes to the taxman along the way. For Blue Account customers, contracting the deposit does not require repeating paperwork.

Onboarding process: Slowness and wrong contracts

Fine print wasn't the only problem. The opening process acts as a patience filter: web form, PDF contracts, signature at a Banesto branch, internal mail, and waiting. There are reports of sign-ups taking more than a week from request to money movement, with some cases receiving neither username nor password despite remote banking contracts stating they were delivered.

Then there are glaring errors. One client reports receiving twice a contract with the wrong rate—5.49% instead of the promised 6.01%—calls at all hours, and a whole week on the phone before ending the relationship. Support hours, 8 am to 10 pm Monday to Saturday, don't compete with ING's permanent availability. Regarding transfers, opinions divide: some report fees, others claim they paid none.

What to do when 5.5% becomes 3%

The other side of the calendar. The Blue Account at 5.5% has an expiration date, and from December 31 onwards, the scenario changes. Competitor promotions have faded one after another: Caja España's 18-month deposit at 6.15% APR disappeared with the year change and moved to 4.21% APR. Ibercaja maintains a nine-month deposit at 5.8% APR, with a 1.5% penalty for early cancellation.

The most common options for six months:

• Caja España PlazoNet: 5.72% for non-customers.
• Caixa Galicia, Pájaro en Mano: 5.25% APR.
• Uno-e: 5.06% APR, for new customers.

For those preferring banks over savings banks (cajas), the list narrows. And for those already juggling four accounts, opening another for half a point starts to be unappealing.

Conclusion

With these figures on the table, savings should logically migrate en masse to the highest bidder every few months. In practice, laziness, paperwork, and irregular customer service slow the exodus. Ibanesto's 6.10% APR holds until January 31, 2009; afterwards, the 3.5% floor will make many look back at competitors. If any live offers remain by then.