Rabo Term deposit matured but im confused

B

belle08

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This may be a totally stupid question but im a little confused.
Opened a 6 month term deposit account at 5.25%
account has just matured this week and i was expecting to get more out of it than i did
I didnt get the 5.25%...it looks like i got half this. Friend told me cos this rate is the yearly rate so 6 months would be half it
I remeber ringing rabo at the time of opening to check on this cos i didnt quite understand how 6 month was 5.25% and opening for 1 year was less so i asked after 6 months will i get the 5.25 and she said yes so i opened it on that!
 
The interest rates quoted are always annual rates so it would make sense that you only got half of that
 
Hi Bell08

My 6 months term deposit with Rabo matured last week, I put away 10,000 and I got around €200 or there abouts, not very much but accurate, your amount should be about that I would assume too.
 
Rate is annual, not for 6 months. Dont forget DIRT tax which they would deduct.
 
€100 @ 5.25% CAR (compound annual rate) for 6 months - DIRT @ 23% (2009 rate) or DIRT @ 20% (2008 rate)

100 * ((5.25% / 12) * 6) = 2.63 gross
DIRT 0.61 (23%)
Net Interest Credited 2.02
 
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