RaboDirect Ireland to close as parent group plans to 'simplify business model and reduce costs'
Online savings bank RaboDirect Ireland will be closing in May following a decision by its parent group to restructure its business model.
RaboDirect, which was established in Ireland in 2005, has over 90,000 customers in Ireland with over €3bn on deposit.
According to a statement from the bank on Wednesday, it is waiving the notice period on notice saver accounts and will be paying the interest earned up to the point of account closure.
"In the case of term deposit accounts, we are paying all the interest that would have been due on the deposits over the full term," read the statement.
The Dutch financial services group said it plans to simplify its global business model and reduce costs.
"As conditions have changed across Europe generally, including Ireland, this source of funding is no longer required by Rabobank," read the statement.
Rabobank said it remains committed to its corporate banking activities in Ireland, which "will not be impacted by the withdrawal of RaboDirect from the Irish market".
The bank said it has begun contacting each customer directly with the actions they need to take before May 16 this year.