AIB Launch 2.00% 2 Year Term Deposit Product

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Lightning

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www.independent.ie

Huge hike in mortgage rates for AIB, EBS and Haven borrowers

AIB Group has reacted to this month’s rise in European interest rates with a huge hike in fixed and variable mortgage interest rates, along with an increase in deposit rates.
www.independent.ie www.independent.ie

AIB is also launching two new fixed-term deposit offerings for its personal and business customers. There is a new two-year fixed term offering, at a rate of 2pc annual equivalent rate (AER), and a six-month fixed term, at a rate of 0.75pc AER.

The new fixed-term deposit products are available from tomorrow in branch and will be on the AIB mobile app in the coming weeks.
Click to expand...

AIB have again not adjusted current account nor lump sum deposit nor notice account rates. AIB have adjusted term deposit rates (effects 1% of depositors) for those who open new accounts and choose these new terms. 2% is an improvement in term deposit rates but still well below European banks.

The pressure is hopefully on BoI and PTSB to respond to AIBs regular saver and term deposit increases.
 
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The T&C's state customers must have a 'AIB payment account' to open the Fixed Term account.
Is a 'payment account' a current account or a demand deposit account (or both) ?
 
redstar said:
The T&C's state customers must have a 'AIB payment account' to open the Fixed Term account.
Is a 'payment account' a current account or a demand deposit account (or both) ?
Click to expand...

Demand account or current account.

But some AIB staff apparently are incorrectly saying it must be a current account.
 
I collected the forms from my local AIB account to open one of their new Fixed Term accounts.

On the form there is an option to open a 1 year fixed account.

I assume that the 2% is not applicable to a 1 year fixed account and I must tie up my funds for 2 years to avail of the 2% rate.

Also, is the 2% rate payable at the end of the term or is it 2% per annum......so I am in effect getting just over 4% for the 2 years?
 
2% per year, but you're locked in for 2 years in a period when interest rates still rising a little more. You'd get more on demand (over 3%) from other banks mentioned on here if you are happy with other EU banks, or 1.56% on demand with Bunq.
 
redstar said:
The T&C's state customers must have a 'AIB payment account' to open the Fixed Term account.
Is a 'payment account' a current account or a demand deposit account (or both) ?
Click to expand...
Lightning said:
But some AIB staff apparently are incorrectly saying it must be a current account.
Click to expand...
I opened one of these recently. A bit of an ordeal really.

Called in to branch to collect forms. Completed forms and left them back but they were unable to open the account then and there. They said they would phone me when the account was opened. They said it would be next day. Nobody phoned.

Called in to branch a few days later. The account had been opened the previous day. I had drawn a cheque on my AIB current account to open the account. Customer services could not deal with the cheque lodgment and I was directed to a cashier. Their system would not accept this. Nobody seemed to know why. Lots of heads together trying to figure it out. I was then asked to cancel my cheque and complete a debit docket.

After making my lodgment to open the account I was just given the small receipt attached to their lodgment docket. Nothing else.

I then asked, if it were possible to check to see if the account had been opened correctly. Correct names and address. Could they print me off some sort of certificate. No they couldn't. I would have to go to a machine and order a statement using my debit card. I was told that the statement would not show the second named party on the account only me. The second account holder would have to separately order a statement through a machine using their debit card.

So it appears that their system will not accept a cheque even one of their own.
 
Reminds me of the time when Ulster and KBC announced that they were closing, and AIB appeared to make it very difficult for people to open new accounts with them.

I almost got the impression that they did not want the business. Though I am sure it was incompetence rather than a conspiracy.

Brendan
 
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