6% gross what % do I get after tax

C

cappamj

Registered User
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I asked this question in AIB bank today when I was getting info on their new fixed term depost A/c and no one could answer me. I tried three different people and they did not know how to work it out. I would like to be able to work it out in future for myself,
thanks
 
If the people in the AIB don't know the answer to such a basic quesiton, it's time to switch banks!
 
Say you have €1,000.

Interest for one year is €60.

Net of DIRT it is €48

This implies a net rate of 4.8%

It's not really branch staff/telesales place to tell you the net return in percentage terms.

The final net rate may well be different from 4.8% when you take into account compounding etc.
 
I'm assuming this is their [broken link removed]. [broken link removed]

20% DIRT tax is due on all interest paid. 3.95% is the quoted annual rate, so that (less 20% DIRT) will be added to the account a year after you open it. On the maturity date 6 months later the final interest of less than (3.95%)/2 will be credited (again with 20% DIRT deducted afterwards.)
 
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