AIB & EBS Deposit rate increase

elcato said:
I hate to keep saying it but one more advantage of State Savings is that you don't need a current account to have one. This adds probably €100 a year in fees to 'invest' in AIB or BOI.
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EBS current account has no maintenance or day to day transaction fees. Other account holders still also benefit from "free" banking with other banks too - me for example with PTSB. :)
 
Kimmagegirl said:
Please excuse my poor math and understanding of this.

How can 3% DIRT free after 3 years not be better than PTSB's 3% after 3 years that is subject to DIRT?
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PTSB is 3% per year, which is 9.28% (before DIRT) after 3 years
NTMA 3 yr Savings bond will be 4% (DIRT free) after 3years (1.32% per year)

9.28% with DIRT (6.21% after DIRT) is better than 4% DIRT free, after 3 years
 
redstar said:
PTSB is 3% per year, which is 9.28% (before DIRT) after 3 years
NTMA 3 yr Savings bond will be 4% (DIRT free) after 3years (1.32% per year)

9.28% with DIRT (6.21% after DIRT) is better than 4% DIRT free, after 3 years
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Yes but you can withdraw the savings bond at any stage and still get some of the interest but I would say the ptsb is locked away for the full 3 years
 
wheeler dealer said:
Yes but you can withdraw the savings bond at any stage and still get some of the interest but I would say the ptsb is locked away for the full 3 years
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You can certainly withdraw at any time and that is indeed an advantage for some. But bear in mind that the interest in the first year or so is likely to be minimal as the interest rate is not linear and most Stats Savings Fixed Term products pay most of the interest in the final year/years. The yearly interest rates have not yet been published for the new rates which come into effect on 1st October, only the total rate is known at this time.
 
How can AIB get away with stating 6 % interest here?
 

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Because that is how compound interest works.

If I deposit 100 euro, after one year the interest (100 x 3% = 3 euro) will be credited to the account so the balance is now 103 euro
At the end of the second year the interest is 103 x 3% = 3.09 euro and this will be credited to the account so the account balance is now 106.09
The gross return is 6.09 on my initial deposit of 100 or 6.09% QED
 
elcato said:
I hate to keep saying it but one more advantage of State Savings is that you don't need a current account to have one. This adds probably €100 a year in fees to 'invest' in AIB or BOI.
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I had a look at this a few weeks ago, AIB charge €4.50 per quarter on a current account plus transaction charges. I will only have one or two transactions (transfer money into current account, move to savings account, transfer out in two years), so the AIB account is costing me less than €20 a year.
 
jpd said:
Because that is how compound interest works.

If I deposit 100 euro, after one year the interest (100 x 3% = 3 euro) will be credited to the account so the balance is now 103 euro
At the end of the second year the interest is 103 x 3% = 3.09 euro and this will be credited to the account so the account balance is now 106.09
The gross return is 6.09 on my initial deposit of 100 or 6.09% QED
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RedOnion said:
I'm obviously missing something. What's wrong with it in your view?
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Would it not be better if they stuck with AER? It looks as though the return is much higher than other banks. Mortgages don't use the gross figure either.
 
Obviously (?) you select the savings account with the best AER for the term you want
 
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