Best Buy Why is the rate the same for different lengths of time?

[callybags]

I've copied this from the Best Buy thread.

Why would anyone opt for a 5 year term when the rate is the same for 18 months?

Am I missing something?

Also, I presume the rate for the 18 month, 3 year and 5 year terms is per annum?


Permanent TSB: Fixed Term Accounts

• 1 Year 1.75%
  1 Year 6 Months 2.00%
  3 Year 2.00%
  5 Years 2.00%
• Minimum: €5,000
• Rates apply from 9 August 2023.
• Access: At the end of the term.
• Deposit Protection: €100,000 via Irish Deposit Guarantee Scheme.

 

[Freelance]

@callybags

Why would anyone opt for a 5 year term when the rate is the same for 18 months?
If their investment horizon was 5years and if they wanted certainty of the return they were going to get and if this rate was sufficient and/or if they believed that there was a reasonable chance that rates would drop below 2% during the longer period.

Also, I presume the rate for the 18 month, 3 year and 5 year terms is per annum?
Correct

 

[redstar]

PTSB have a calculator for this...
https://www.permanenttsb.ie/saving-and-investing/deposit-accounts/fixed-term-deposit-account/
18 mth @2% gross p.a for 100k deposit

5 yrs @2% gross p.a for 100k deposit