PTSB paying 20% GROSS for 5 year term or 4% monthly!

Not sure how often the Best Buy Term Deposits are updated on this site, but I was in the PTSB today and if you take the 5 years 3.71% AER it actually pays 4% and you can have the interest monthly. I dont know why its not advertised as 4%. but it seems a good deal.

Behanl

The best buys are updated several times a week.

The PTSB 5 year term deposit rate pays 3.71% AER, not 4% AER and it is not a best buy for that time period.

Hi CiaranT,

Sorry if I mislead anyone with my posting. I was trying to say that the account is paying 4% gross which is equivilent to 3.71 AER and if you opt to have the interest paid monthly you get the interest at 4% rate.

20.00% Gross / 3.71% AER fixed interest rate on balances of €10,000 + based on deposit term of 5 years.

Regards
Behanl

CiaranT said:

The best buys are updated several times a week.

The PTSB 5 year term deposit rate pays 3.71% AER, not 4% AER and it is not a best buy for that time period.

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Hi CiaranT

One other point, you say in your reply that this is not the best 5 year offer, well the headlined 5.5 year is a state offer and is capped as to how much you can deposit and PTSB is not, also state deposits have advantage of not applying DIRT and only pay at maturity. This is like comparing an apple with an orange. A suggestion maybe to separate the state savings offers from the banks. Just my pennies worth.

Bahanl

Okay, interesting.

Normally monthly interest has a lower AER than interest at maturity.

Are you sure that they said that it was the AER figure for 4%?

Abosutely sure, I already had a monthly interest paying account the matured yesterday so closed it this morning and moved to this one.

I can tell you I was also very surprised at the calculation of paying the compound interest % upfront monthly so to speak, But they are being agressive at the moment if you look at their interest upfront account.

I agree AnPost is technically a better rate but no good if your deposit forms part of your income or is your inclome, so for say a pensioner or other persons/s with large deposit this one is really competitive.

I cant post the link to the PTSB page as I dont have enough posts yet, but check it out.

behanl

Please PM or email me the link that states 4% AER.

The T&C's & term deposit webpage make no mention of a 4% AER rate.

Clarified with my branch this morning. They said its 20% Gross for 5 year deposit, however due to regulatory advertisement rules the AER is advertised as 3.71 % to satisfy legal requirements to demonstrate the equivalent of what the AER would be if the term was 1 year and rolled after that.

However as PTSB is actually paying a final return of 20% this = 4% PA as you can have your interest paid monthly. So it really is 4% PA Subject to T&Cs if you break the 5 year deal. I have PMd you the link.