# PTSB 18 Month Term Deposit



## Juliette (16 Oct 2009)

I was in Permanent TSB yesterday and they told me they have an 18 month deposit account @ 5%. I was surprised as I hadn't seen this information on AAM. Has anybody else heard about this?


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## blass (16 Oct 2009)

*Re: Fixed Term Lump Sum Deposits*



Juliette said:


> I was in Permanent TSB yesterday and they told me they have an 18 month deposit account @ 5%. I was surprised as I hadn't seen this information on AAM. Has anybody else heard about this?


 
I think you will find this is correct.
However, the "5%" is over 18 months which is equivalent to an Annual rate of 3.31%. Just another case of headline grabbing rates which fall down upon closer inspection. It shouldn't be allowed.


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## Lightning (16 Oct 2009)

*Re: Fixed Term Lump Sum Deposits*

Thread split. 

The rate is 3.31%, 5% is the "gross rate" and should never be quoted. 



blass said:


> However, the "5%" is over 18 months which is equivalent to an Annual rate of 3.31%. Just another case of headline grabbing rates which fall down upon closer inspection. It shouldn't be allowed.



Bravo, I could not agree more. 

I think the Financial Regulator needs to introduce a code of practice for savings products. There are too many misleading statements and misleading products. The industry needs standards.


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## ardmacha (17 Oct 2009)

> The industry needs standards.



Sadly, the Regulator has failed to impose standards on much more important matters than the presentation of interest rates for multi year deposits.


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## Bobby1 (18 Oct 2009)

PTSB advertise both the"gross" rate and the annual rate, Would it not be more confusing if they didnt quote the 5% aswell? If they didnt say 5% and just quoted the annual rate but the term is greater then 12 months, that would confuse me, I like to see both, what I will make after the term (in this case 18 months) and what the annual rate is so I can compare it against others. 

I really fail to see how its misleading, I mean the ad is on their homepage and the size of the text is the same, they even bold the rates so they stand out! Surely they have to promote the "5%", as this is the return over the full 18 months. The AER is 3.31% which is what the customer will get if the term is 12 months, but its not its 18 months!!!!!!!

(BTY- no connection with PTSB)


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## Lightning (19 Oct 2009)

An interest rate should be an annual return, nothing else, and all interest rates should all be compared on this basis.

The advert should state:
Interest Rate: 3.31%
Term Deposit Period: 1 year 6 months
Principal & deposit available on maturity date.

PTSB are not the worst, most banks play plenty of tricks in their savings adverts. 

The ad may be clear to you and me, it is the general public that needs protection.


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## Chris (19 Oct 2009)

fungus said:


> The ad may be clear to you and me, it is the general public that needs protection.



The general public does not need protecting, they need educating. It is everyone's obligation to know what they are letting themselves in for, especially when it comes to money.


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## Bobby1 (20 Oct 2009)

Chris said:


> The general public does not need protecting, they need educating. It is everyone's obligation to know what they are letting themselves in for, especially when it comes to money.


 
Couldnt agree more Chris, blame cant always rest entirely at the door of a bank, customers need to take some responsibility for their actions. Its too easy to always blame a bank when things go wrong, customers should know what they are letting themselves in for when its their hard earned money at stake, get some independent advice, read up on products and services etc...!


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## IsleOfMan (20 Oct 2009)

Many people only see what they want to see.


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## Chris (20 Oct 2009)

Just to add some defence for PTSB, their website very clearly distinguishes between gross rate and AER for all their fixed term savings accounts.


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