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.
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.
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.
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:
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.