E
ExIRL
Guest
GeneralZod supplied the following in his Best Buys - Highest Term... post
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An Post: Savings Certificates 17th issue
3 Years 3.23% (equivalent to 4.30% because this product is not subject to DIRT at 25%) ** Best 3 year rate **
5.5 Years 3.53% (equivalent to 4.70% because this product is not subject to DIRT at 25%) ** Best 5.5 year rate **
Note 1: €120,000 maximum
Note 2: Interest is not accrued on a daily basis, it is accrued each six months from the date of purchase. You can withdraw at any time during the term but you will loose any non accrued interest.
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My question is this:- Since interest is accrued every 6 months, why would anyone select the 3 year certificate over the 5.5 year cert? Is there something (penalty?) preventing cashing out from either product on these 6 month interval windows?
For example, cashing out after 12 months would yield 35.30 on every 1000 invested in the 5.5 cert but only 32.30 on the 3 year cert. Am I missing something here?
Thanks.
<
An Post: Savings Certificates 17th issue
3 Years 3.23% (equivalent to 4.30% because this product is not subject to DIRT at 25%) ** Best 3 year rate **
5.5 Years 3.53% (equivalent to 4.70% because this product is not subject to DIRT at 25%) ** Best 5.5 year rate **
Note 1: €120,000 maximum
Note 2: Interest is not accrued on a daily basis, it is accrued each six months from the date of purchase. You can withdraw at any time during the term but you will loose any non accrued interest.
/>
My question is this:- Since interest is accrued every 6 months, why would anyone select the 3 year certificate over the 5.5 year cert? Is there something (penalty?) preventing cashing out from either product on these 6 month interval windows?
For example, cashing out after 12 months would yield 35.30 on every 1000 invested in the 5.5 cert but only 32.30 on the 3 year cert. Am I missing something here?
Thanks.