Have 20k to invest long term (5+yrs) and want security. Just want to check I am calculating this correctly:
20,000 deposit - AN POST
21% over term of savings certs = 4,410 (no dirt payable)
20k after 5 & half years = 24,410
20,000 - BANK (averaging 4%p.a. for similar 5 & half yr period
4% p.a. over 5 and half yrs = 4,400 (less 21% dirt tax [924]) = 3,476
20k after 5 and half years = 23,476
Am I correct in my calculations of the above and am I reading it correctly that I would be better off financially to tie my money up with An Post for the five & a half year period rather than any of the banks which all average about 4% p.a. on deposits over this period of time.