AIB 2.77% 2 Year Deposit

presidenttttt said:

I am not sure 3% gross is anything to write home about? Is there not a thread here with higher rates from non Irish banks? Personally not convinced inflation and higher rates are over yet either

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Deposit rates in general have been falling lately in line with ECB rate cuts. But thanks to the great work by @Lightning in particular you can read all about them here:
The AIB 3.02% rate is the best 2 year fixed term rate on offer at the moment.

presidenttttt said:

I am not sure 3% gross is anything to write home about? Is there not a thread here with higher rates from non Irish banks? Personally not convinced inflation and higher rates are over yet either

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As @ClubMan pointed out it’s the best available 2 year rate at present and among the best rates generally. To each their own but unlike many of the other better rates DIRT is deducted at source, there is no withholding tax and you aren’t dealing with a bank registered in Malta or outside the eurozone, all of which bring their own issues.

We opened one of these AIB accounts in Dec.
We were not AIB customers. The usual ID and proof of address was necessary. First step was to get set up on their system and open a "current account" . This account is what you load with your preferred amount of deposit money. Subject to your current banking provider daily limits, this may be done over a few transactions. This account has no other function and no charges. (It's also where your money will get popped back to when the fixed term is ended). Your deposit then gets
moved from this current account to your fixed term deposit account in one go.
Set-up is most likely different for existing AIB customers.
There were some odd questions during the process about income and means. I took this to be marketing profiling but was told that it's because your money is inaccessible for the term, that they need to believe that you can survive without it. That made my B.S. detector bleep... Anyway , we went ahead.

EDIT. "Current Account" is the wrong name for this account. It is ,in fact , a "Personal Demand Account " . Apologies, if I've confused matters.

I just opened one online this morning. I already had a simple deposit account so it was really straightforward to open and then complete an online transfer into the 3% 2yr fixed account. Took all of 3 minutes ( I had read the small print last week and that took a half hour). It’s certainly the best Irish fixed rate and can’t be around much longer.

RedmondC said:

It’s certainly the best Irish fixed rate

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It's not just the best fixed rate available to Irish customers, it is also one of the highest fixed rates across all of Europe right now.

The question now is whether AIB will cut this rate before 5 February when the minimum deposit rule changes or after. If after, there might be an influx of deposits on 5 February when the minimum deposit amount gets reduced.

Freelance said:

As @ClubMan pointed out it’s the best available 2 year rate at present and among the best rates generally. To each their own but unlike many of the other better rates DIRT is deducted at source, there is no withholding tax and you aren’t dealing with a bank registered in Malta or outside the eurozone, all of which bring their own issues.

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True, although for non-domiciled individuals this is actually an advantage, because due to tax remittance they don't have to pay DIRT if they don't bring the gains to Ireland. Even if they are tax resident in Ireland. Same as with capital gains from selling shares outside Ireland. IE: any non-domiciled individual tax resident in Ireland with a Trade Republic account would be getting the full interest rate they provide (currently 3%, but was 4% a few months ago) without having to pay DIRT unless they bring those gains to Ireland.

It's finally happened ... AIB are cutting their 1 and 2 year rates by 0.25% from tomorrow. No change to other savings rates nor mortgage rates.


A few hours left to get the 3.02% rate. And 7 days thereafter to fund the account.

Interesting that AIB’s reduced 2-year term deposit rate still tops the “best buys” list.

Lightning said:

It's finally happened ... AIB are cutting their 1 and 2 year rates by 0.25% from tomorrow. No change to other savings rates nor mortgage rates.

AIB latest lender to start cutting deposit rate after ECB moves

Fixed-term products affected, all other savings rates remain unchanged

www.irishtimes.com

A few hours left to get the 3.02% rate.

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Done this afternoon. Thanks you for the alert

Lightning said:

It's finally happened ...

A few hours left to get the 3.02% rate. And 7 days thereafter to fund the account.

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Many thanks @Lightning

You are due pints - this thread spurred me to open an additional account before Christmas and another one this week to hoover up stuff coming off fixed term !!

Glad to hear that a few people got the 3.02% rate in time.

Dang! I have sustantial funds maturing next week. Was looking to put it into this. I wonder would they still let me? What do people think? One or two year term deposit suits me.

tiarnalamh said:

Dang! I have sustantial funds maturing next week. Was looking to put it into this. I wonder would they still let me?

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Very much doubt it but no harm in asking.

tiarnalamh said:

What do people think? One or two year term deposit suits me.

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@Lightning's excellent best buys lists should be your next port of call...

tiarnalamh said:

Dang! I have sustantial funds maturing next week. Was looking to put it into this. I wonder would they still let me? What do people think? One or two year term deposit suits me.

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Open the account right away - no issue if you are already an AIB customer - and you then have 7 days to fund at the 3.02% rate.

Failing that, 2.77% is still pretty much as good as it gets for a 2-year fixed term.

I have the AIB app and have done what you suggested online. Fingers crossed it all works out on time. Thank you Sarenco