PTSB 2.75% 1 Year Term Deposit

[Lightning]

According to Reuters, 82 of 82 economists expect the ECB to cut rates this week.

Most likely the ECB cut, if/when it happens, will affect term deposit rates.

The best one year term deposit rate on the market, as per the best buys, is PTSB at 2.75%. (Easisave also offer 2.75%).

I know someone who recently opened a PTSB account, and PTSB told them that rates will be "changing soon". Plausible.

Unlike AIB, and unlike BoI (apart from the 25% allowed), PTSB does offer the ability to exit early, albeit subject to penalties and loss of interest. But at least there is a way.

Accounts can be opened online with a 5k minimum.

Anyways, I think it is worth highlighting that time might perhaps be limited to get paid 2.75% from PTSB for a 1 year term.

 

[llgon]

I opened one online in early January and another last week. Extremely convenient as a PTSB customer, literally took two minutes.

 

[llgon]

Worth noting as well, in case your funds are not immediately available, is that money can be paid into the account within 14 days of opening it.

Full or partial withdrawals can also be made within 14 days without penalty.

 

[charlie007]

Also interest up front, which can be important for some.

 

[llgon]

The interest first account cannot be opened online. A branch appointment is required.

 

[Luternau]

@Lightning
Thanks for posting.

Can you open more than one of these fixed term accounts ?

Early withdrawal fee is quite complex..

From PTSB Fees and Charges (page 56...)
The early withdrawal charge is (1% x Amount withdrawn x Remaining term) ÷ 365 or an amount equal to the funding loss (if applicable), whichever is the greater. A minimum of €20 applies. Funding Loss is calculated using the formula (AxTxD) ÷ 365 where: A = the amount withdrawn T = the remaining term D = the difference in the prevailing market rate of interest for a term equivalent to the period remaining and the rate applicable at the date of opening the account.

 

[Lightning]

Can you open more than one of these fixed term accounts ?

The app says you can only open one Online 1 year term deposit account in your name. But I just opened 2 term deposits (with zero balances) just to test this and the app did not stop me. Hence, it seems to be possible to open more than one.

Early withdrawal fee is quite complex..

From PTSB Fees and Charges (page 56...)
The early withdrawal charge is (1% x Amount withdrawn x Remaining term) ÷ 365 or an amount equal to the funding loss (if applicable), whichever is the greater. A minimum of €20 applies. Funding Loss is calculated using the formula (AxTxD) ÷ 365 where: A = the amount withdrawn T = the remaining term D = the difference in the prevailing market rate of interest for a term equivalent to the period remaining and the rate applicable at the date of opening the account.

Complex is right.

For the first part - if you deposit say 10,000, and you withdraw with 100 days remaining, then my calculation is the charge would be ((1%*10000*100)/365) = 27 EUR.

It is more likely going to be a funding gain rather than a funding loss because rates will likely be lower. Maybe. So the second part might not apply.

PTSB also might wave the charge altogether.

 

[Luternau]

PTSB also might wave the charge altogether

I can't see them doing this.
The funding loss (to PTSB?) calculation is probably going to be the method of calculation. For your example it is impossible to calculate in advance. Can a fee or charge be that ambiguous?