PTSB 75 days? 5.5%?

[JamesGG]

Hi, is that 5.5% per year or is it 5.5% for 75 days.

For example if I put 10,000 in would I get 10550 - DIRT or would I only get a fifth of that as 75 days is roughly 1 fifth of a year?
Thanks.

 

[oldtimer]

Wishful thinking I'm afraid. It is 5.61 AER which means you will not get 10550 - DIRT.

 

[JamesGG]

I mean 10,000 plus the interest of 550 minus dirt, is that way off?

 

[dubrov]

I'm afriad oldtimer is right despite his advancing age.

Your interest at the end of 75 days would be 10000*5.5%*75/365, so about €113.

Always look at the AER. It's the easiest way to compare deals. It's effectively the return you would get if you invested the sum for a year, i.e. every 75 days you got back your 10,000 + interest and reinvested the lot at the same rate for a year

 

[JamesGG]

I'm afriad oldtimer is right despite his advancing age.

Your interest at the end of 75 days would be 10000*5.5%*75/365, so about €113.

Always look at the AER. It's the easiest way to compare deals. It's effectively the return you would get if you invested the sum for a year, i.e. every 75 days you got back your 10,000 + interest and reinvested the lot at the same rate for a year

Not a great deal at all then, thanks for the replies.

 

[OPTIMUM]

75 day term is very odd, as depending on what day of the week you open it it may not be exactly 75 days. also, the ad looks like it was for Paddypower...not sure what horseracing has to do with 75 day term...