RaboDirect €1 Billion Start To 2007

22,000 Customers Favour Flexible Access

Wednesday 3 January 2007: The first week of the New Year has seen deposits at the AAA rated online savings and investment bank RaboDirect top €1billion for the first time. Europe's largest online bank has been operating in Ireland less than two years and has almost 25,000 customers. The milestone figure follows RaboDirect's announcement of a new 4.75% variable CAR (Compound Annual Rate) on deposits of up to €10,000 effective from 1 January 2007 for both new and existing customers.

The bank also confirmed it has secured €33 million in investments to date through its portfolio of execution-only managed funds from Oppenheim, Robeco, Blackrock/Merrill Lynch and Henderson Global. The recent addition of three Oppenheim funds has boosted inflows bringing to 23 the number of execution-only managed funds on offer at RaboDirect. 2007 will see the addition of more niche funds and some new fund providers.

Commenting Greg McAweeney, General Manager RaboDirect, said "We have achieved the €1billion milestone in record time and this is a great start to 2007. This is before our new 4.75% CAR lump sum rate starts to impact. RaboDirect launched in Ireland exactly 20 months ago on 3 May 2005 and led a new competitive era in savings for Irish customers. Our latest rate offering reaffirms our commitment to providing real and genuine competition and will make customers money work harder for them while remaining fully accessible. Research showed that the flexibility of unrestricted access to savings and the scope to withdraw some or all of that money at any time with no penalties, fees or drop in rate is a significant factor for our customers".

RaboDirect's 4.75% variable CAR applies to balances on demand up to €10,000. The rate benefits both new and existing RaboDirect savings account customers and will apply until the 31st December 2007. A rate of 3.70% applies to savings in excess of €10,000. RaboDirect's savings account is an instant access account with no minimum term, no minimum deposit, fees or withdrawal penalties or bank charges. All rates effective from 01/01/07 to 31/12/07. Standard Variable Rate(s) apply thereafter.