# Permanent TSB 5.89% AER 20 month term account



## GeneralZod (4 Jul 2008)

They [broken link removed] this last week before the ECB increase. It is for balances above €10k.  Press story.


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## hoopman (4 Jul 2008)

I was reading about that earlier, Has anyone any opinion of this account, they would like to share.

I was thinking of putting my savings into it as the rate is better than what I'm getting at moment.

It says on the web site that additioanl lodgements are not allowed and the minimum balance is €10,000, and that account interest is accrued daily and paid to the account on maturity 

Just wondering though; is there a penalty if you make a withdrawal but still keep at least €10,000 in the account


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## ClubMan (4 Jul 2008)

Are _PTSB _like _FA _in not putting their account terms & conditions online for easy access?!


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## GeneralZod (4 Jul 2008)

hoopman said:


> Just wondering though; is there a penalty if you make a withdrawal but still keep at least €10,000 in the account



Near the bottom it says



> Fixed Rate customers receive an account opening letter, stating the amount invested, the term, the rate and the total investment (including credit interest) at maturity



and a bit further down



> If withdrawals are made without giving sufficient notice (notice accounts) or before maturity (fixed accounts), early withdrawal charges will apply.



So it sounds like it's effectively fire and forget for 20 months.


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## Mercantilist (4 Jul 2008)

> 10% gross rate (5.89% AER Fixed)
> Minimum balance of €10,000
> 20 Month period
> There is no restriction on the maximum lodgement
> ...


 
[broken link removed]

Can someone explain how 10% gross rate equates to 5.89% AER?
It doesnt sound right to me.


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## GeneralZod (4 Jul 2008)

It's 10% over _20 months_ and 5.89% over any 12 month period of that 20 months. All interest paid at end, early withdrawal penalties apply.

Here's the maths.

10% = [1.0589^(20/12) - 1] * 100%


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## pepperds (4 Jul 2008)

anyone know of a calculator that can show potential returns after 20 months for a specific amount invested?


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## GeneralZod (4 Jul 2008)

It's really quite simple.

The net return (after DIRT) at the end of 20 months is 8% of the amount invested. DIRT takes away a fifth of the gross return.

e.g. €10,000 put in gets you €800 in interest after DIRT at maturity.
      €20,000 returns €1,600 etc.

No additional lodgements are allowed so it's a straightforward calculation.

To compare with other products it's best to look at the AER figure.


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## frankmac (4 Jul 2008)

Am I right or wrong in thinking that with interest rates likely to increase again, that a fixed term of a shorter period i.e. Anglo Irish 5.35% over 6 months, would be a better idea that for example PTSB's 20 month period?


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## GeneralZod (4 Jul 2008)

As far as I understand it if you believe rates will go up again you need to very carefully weigh whether putting your money into a 20 month fixed rate is the best thing to do. Neither Anglo or Rabo have passed on the latest ECB rise. Assuming they do that and then in another 3 months or so pass on another rise if it happens and if they pass on the full rise on each occasion they'll be at or just above the AER of this product.  That's a couple of ifs. I'm inclined to wait a few weeks to see what happens.


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## hoopman (4 Jul 2008)

Thanks for the info GeneralZod, 

I think a mixture of bad eyesight and lack of banking knowledge led to me not seeing all the small print.

Maybe i will hold off a bit longer, before committing to fixed.


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## declanh (26 Oct 2008)

Was in a branch recently, and this product is no longer on offer - apparently it was withdrawn on October 10th 2008.


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## GeneralZod (26 Oct 2008)

Could be wrong, but I thought it was still listed on their web site more recently than that. Deleted from the fixed term list.


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## roker (29 Oct 2008)

I noticed in the small print that after the 20 months, they will automatically re-invest the amount into another term account unless you tell them otherwise


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