AIB 2.77% 2 Year Deposit

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Lightning

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AIB's 2 year term deposit pays 3.02% AER fixed.

Term deposit rates have collapsed across Europe in recent months.

But AIB have not cut their term deposit rates nor culled products yet.

I could be totally wrong - and probably pointing out the obvious to most people - but it's very difficult to see this product/rate lasting much longer.

If anyone is considering a term deposit, and if one wants to choose an Irish bank (Raisin do have a slightly higher paying offer), now might be the time to consider this product. Perhaps.
 
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Not the best 2 year rate on offer but I guess that some people might be more comfortable dealing with AIB than with Raisin/Haitong...

Best Buy - Term Deposits (Fixed Lump Sum Savings)

Rates are frequently updated. Information last changed: 27 December 2024. Highest Term Deposit Rates 3 Months - FCM Bank - 3.51% 6 Months - Easisave - 3.30% 1 Year - FCM Bank - 3.11% 2 Years - Haitong via Raisin.ie - 3.14% 3 Years - Haitong via Raisin.ie - 3.10% 4 Years - Fjord Bank via...
www.askaboutmoney.com
 
Apologies for a few Q's. I'm interested in opening this account and plan to visit a branch tomorrow. However, if not already an AIB customer, will I need to set up a current account with them and will this involve quarterly management fees? Not sure why Irish banks make it so difficult to lodge lump sums for a few years but I assume this will also reduce the rate again + DIRT tax. TIA.
 
Good spot lightning. Given a lot of people have been caught for PRSI on top of DIRT on overseas deposits it's a convenient and efficient option to have.
 
Harvard said:
Good spot lightning. Given a lot of people have been caught for PRSI on top of DIRT on overseas deposits it's a convenient and efficient option to have.
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I've been assuming if you fill the Form 11 and you've Irish deposit interest, you declare it somewhere and they add on PRSI. Is that not the case?
 
@Lightning

A very timely reminder. BOI withdrew their two year term deposit recently, the longest they currently offer is 18 months. As @podgerodge says the rate is competitive, and the BOI product allows up to 25% to be withdrawn during the fixed term without penalty if that's of interest.

There were significant rate cuts in the PTSB 3 and 5 year term products some time back, (e.g. 3 year dropped from just over 3% to 2.1%).

We aren't far from the point where some of the miserable rates that State Savings have been offering over recent years will start looking attractive again, when DIRT is taken into account.
 
The AIB 2 year offer is competitive. The BoI 1 year 6 months offer is almost as competitive. But arguably the AIB offer is better give the longer duration that you're fixed.

NTMA State Savings still offer awful instant access rates and low term deposit rates but this, relatively speaking, are improving because the NTMA are not cutting yet. But forr a 5 year term, for example, Aareal Bank, via Raisin.ie, with no local withholding tax, is a better offer, even considering the tax.
 
For the first time, in a very long time, an Irish bank has the highest term deposit rate in the market for a given term.

AIB's 2 year 3.02% term deposit rate is now the highest rate on offer for a 2 year term.

Irish banks continue to be slow with adjusting most mortgage rates and deposit rates post ECB cuts.
 
Yeah I stuck some money into this after reading this thread. I had an old AIB online account with nothing in it so was pretty easy and painless setting this up.
 
Hi there, I'm new to this page but was hoping someone could give me an idea of how much interest I could expect to earn after the 2 year time frame after DIRT is deducted if I invested €200,000 initially please?

Also, if I needed the money during the two years, is it possible to take the money out (and not end up with less than the €200,000 I invest) or is there no way of having access to the money for 2 years?
 
The issue is are this long term deposits really competitive at all given instant access are at similar rates
 

No access during the 2 years.

Approx - 200000*0.0302*2*(1-.33) = about 8k post tax.
 
irishfinanceguy said:
The issue is are this long term deposits really competitive at all given instant access are at similar rates
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All depends on what the ECB will do.

ECB is expected to cut rates further. If that happens then instant access rates will fall but those locked into term deposits will be obviously unaffected.
 
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Lightning said:
No access during the 2 years.

Approx - 200000*0.0302*2*(1-.33) = about 8k post tax.
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Would such a large amount of interest still only be subject to DIRT or might it become assessable for income tax/PRSI/USC?
 
ClubMan said:
Would such a large amount of interest still only be subject to DIRT or might it become assessable for income tax/PRSI/USC?
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USC - No liability.

Income tax - No liability.

PRSI - you are subject to PRSI if your unearned income exceeds €5,000 in a calendar year. AIB pay interest annually with a 2 year term deposit. The interest is approx 4k per year post DIRT but over 5k gross - so you would be subject to PRSI.

Yeah, so good point, that correct approx post tax formula is probably: 200000*0.0302*2*(1-.37)
 
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I always thought that people over 70 do not pay PRSI. Wouldn't this also apply, even in the above scenario, with a person over 70 year.?
 
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