Confused about AIB's Gross Return on their Fixed Accounts.

[Laramie]

Can someone clarify for me the rates on offer from the AIB for a Fixed Term.

On their page they are showing a gross return of 2% and a gross return of 4.04% at maturity for a two year fixed account. Should it not be one or the other Thanks.

AIB Savings & Deposits - Deposit Rates

Check AIB’s latest deposit interest rates across savings and term accounts. Compare options to find the best rate for your financial goals.

aib.ie

 

[Gordon Gekko]

Can someone clarify for me the rates on offer from the AIB for a Fixed Term.

On their page they are showing a gross return of 2% and a gross return of 4.04% at maturity for a two year fixed account. Should it not be one or the other Thanks.

AIB Savings & Deposits - Deposit Rates

Check AIB’s latest deposit interest rates across savings and term accounts. Compare options to find the best rate for your financial goals.

aib.ie

It’s 2% gross per year, and then because deposit interest is compound in nature, the gross yield at maturity is 4.04%. The ‘0.04’ bit is just interest on the first year’s interest.

 

[Kimmagegirl]

The AIB is offering 2% for a two year fixed term. 4.04% overall for the two years.

I see that the Permanent TSB is offering 2% for eighteen months. Is this 2% for the full term of eighteen months?

It seems that the AIB of 4.04% for two years is a better offer?

 

[Freelance]

Apparently it's 2% AER in both cases. As Gordon mentioned, this is 4.04% in AIB's case, over 24 months. And it will be a whisker over 3% in PTSB's case over 18 months. So for €10k, you will get approx €303 gross before DIRT from PTSB after 18 months and approx €404 gross before DIRT from AIB after 24 months.

According to PTSB's website right now, their Fixed Term rates are as follows:

https://www.permanenttsb.ie/saving-and-investing/deposit-accounts/fixed-term-deposit-account/

Term	Required balance	Gross interest rate	Gross return	AER
6 month	€5,000+	0.75%	0.36%	0.75%
1 year	€5,000+	1.25%	1.25%	1.25%
18 months	€5,000+	2.23%	2.23%	1.50%
3 years	€5,000+	4.57%	4.57%	1.50%
5 years	€5,000+	7.73%	7.73%	1.50%

This conflicts with what appeared on the RTE website on Friday last, where the 18 month Term deposit was quoted at 2% AER. Presumably PTSB just being slow about updating their website but you might want to check with them.

 

[Kimmagegirl]

I called to Permanent Blackrock this morning and I was told that it is 2% for the 18 month term.

I was also told that this 2% will not be available until the 9th August.

I felt that the person I was speaking with did not know much about the product nor eager to find out for me.

 

[IsleOfMan]

I was also told that this 2% will not be available until the 9th August.

I can't find this information anywhere. Can anyone confirm?

 

[RedOnion]

I called to Permanent Blackrock this morning and I was told that it is 2% for the 18 month term.

It's 2% per annum (AER), so a little over 3% for the full 18 months. Regulations require banks to quote AERs

I was also told that this 2% will not be available until the 9th August.

I can't find this information anywhere. Can anyone confirm?

"The new deposit rates will take effect from 9th August 2023."

Here's full press release:

Permanent tsb increases rates for deposit accounts

www.permanenttsb.ie