Help with PTSB Fixed Term Deposits

Hello,

I was having a look at the Best Buy Fixed Terms Deposits that you have on this site (sorry, but it seems I am not allowed to post the URL) and find myself more confused than I was before ... I don't quite understand a couple of things which I hope you guys can help me with

Looking at the PTSB Fixed Rate Deposit Accounts, how is it possible that the 4 or 7 months give a better AER (3.13%, 3.22%) than the 1 year one (2.90%) ??

Now, comparing the PSTB Interest First Savings Account vs Fixed Rate Deposit Accounts, how is it possible that the 1 year interest first gives a way better AER (3.46%) than the 1 year fixed rate (2.90%) ???

I checked on the PSTB site and I can't find any explanation to both questions ... I guess I am missing something here but I just can't see it ...

Thanks

ElPelao said:

Looking at the PTSB Fixed Rate Deposit Accounts, how is it possible that the 4 or 7 months give a better AER (3.13%, 3.22%) than the 1 year one (2.90%) ??

Click to expand...

PTSB have several 1 year term deposits, one of them pays 3.46%.

Rates for different terms vary.

A longer term does not always equal a higher return.

ElPelao said:

Now, comparing the PSTB Interest First Savings Account vs Fixed Rate Deposit Accounts, how is it possible that the 1 year interest first gives a way better AER (3.46%) than the 1 year fixed rate (2.90%) ???

Click to expand...

Many banks have similar products but at different rates. The bank hopes that some customer profiles will not subscribe to the higher interest product.

Thanks CiaranT for the answer !

I thought there was some small print I was missing but then it looks it is just marketing or a the-more-the-merrier strategy from PTSB (which personally I think it just leads to confusion!)

Rgds

The compound annual rate exists in order to make a comparison of different returns for different periods or interest rates. CAR is the equivalent rate per annum and assumes that for periods of longer than one year, the interest is compounded on an annual basis. In simple terms CAR is what the interest rate would be if interest was paid or credited each year.

Patrick