PTSB Bonus booster A/C

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seantheman

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Highest variable rate

€10,000+ - Permanent TSB: Bonus Booster - 2.50%

Selected Instant Access & Notice Variable Rate Accounts

Permanent TSB: Bonus Booster Account
0.50% on €0.01 to €10,000 excluding bonus.
1.50% on €0.01 to €10,000 including bonus.
1.50% on €10,000+ excluding bonus.


2.50% on €10,000+ including bonus.
  • Access: Instant access but bonus is only paid if you make no more than 2 withdrawals per calendar year (1 January to 31 December inclusive).
  • Interest paid: Annually on first working day after 20th November.
  • The 1% bonus is a variable bonus rate. Hence, it is possible that on 'bonus payment date' that the bonus may be lower than 1%.
  • Deposit Protection: €100,000 via Irish Deposit Guarantee Scheme.
Can someone tell me if i'm reading this properly or not please. Say I deposit €10k on Nov 1st, will my interest for the year be paid on Nov 20th thus avoiding the DIRT increase?I guess the bonus element couldn't be paid until the first anniversary on 1 Nov 2014
I understand that this isn't the interest first a/c
 
I have a feeling the bonus interest is paid on 31st December, but will have to check that. Unless you have a large amount, you won't get much interest if you only deposit in November, so not much saving on the Dirt.

As per Ptsb website: The account interest and any bonus interest amount will be credited to the account at the end of business on the 31st of December of each year or the first Business Day after that.
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Gervan said:
I have a feeling the bonus interest is paid on 31st December, but will have to check that. Unless you have a large amount, you won't get much interest if you only deposit in November, so not much saving on the Dirt.
Click to expand...

Looked at my post with a fresher mind this morning and see i got this totally wrong:eek:
Although i realised that it wasn't an Interest First a/c, i was still kind of confusing it with a fixed term a/c, where your yearly interest would be added on said date and you had the added bonus of two withdrawals.:eek:
 
Just to stay with this, Could anyone with a better grasp of interest rates than myself
work out the different end values of 10k invested for 1yr in PTSB interest first a/c @ 2.45% v PTSB bonus booster @ 2.5%(assuming it stays this rate). bringing into play DIRT and increases as currently known. Ta
 
If you put €10,000 into the 1 year Interest First account on Nov 1st you get gross interest €240 less 33% Dirt = €160.80

If you put 10K in the Booster on 1st November, you'll have about €41.78 gross interest on 31/12/13, €28 after Dirt.
To get the bonus in the second year you have to have the account open at 31/12/2014. Second year interest €250 less Dirt at 41% (unless you're a chargeable person, in which case the 4% Prsi also applies) is net €147.50.
So for 14 months, assuming no drop in interest rate, you'd get €175.50 which is equivalent to €150.43 over 12 months.

The interest first account pays a higher net interest.
You have the interest now and are not susceptible to interest rate falling.
If you can bear to be without your €10,000 for 2 years, you'd get €489 (gross) this year, before the Dirt increase.
 
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Exactly. If your circumstances allow you to fix, then the Interest First fixed rate product will almost certainly give you a greater return than the Bonus Booster variable product.

I have added the bonus interest payment date into the best buy thread.
 
Thanks Gervan and Ciaran. So only a tenner difference between the two accounts averaged over the year but with 2 withdrawals allowed on Bonus booster,assuming of course rates stay the same, cheers
 
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