Fixed Term Account
It Pays to Save
At certain times in your life you may find that you have a substantial sum of money to put away. It could be a lump sum received through inheritance, retirement or even from savings built up over the years. You need to think about how to best manage the lump sum.
One very popular option for lump sum deposits is a Fixed Term Deposit Account. It offers full capital security for the term chosen, with a secure rate of interest for the period you choose.
How it works
With a Fixed Term Deposit Account, euro denominated funds are set aside for a fixed period of time ranging from 1 day to 6 years. Interest rates for the Fixed Term Deposit Account are quoted by the bank based on market term rates. These rates may vary from day to day. The agreed fixed rate of interest will be applied to your Fixed Term Deposit Account for the duration of your chosen term.
If at a later date you choose to make an additional lodgement to your Fixed Term Deposit Account, simply advise your branch in order to lodge your funds. This will affect the interest rate on your account. The prevailing rate of interest on the day will apply to this additional lodgement. The minimum additional lodgement amount which must be lodged is EUR1,000. The minimum deposit for a Fixed Term Deposit account is EUR25,000.
The benefits for you:
- Flexibility in deciding how long you'd like to save your money.
This can range from short term (1 day, 7 days, 1, 2, 3 or 6 months) to medium term(1 year, 18 months or 2 years) to longer terms (3, 4, 5 or 6 years). - The security of knowing that your savings are earning a fixed rate of interest.
- Interest is paid on maturity, on the anniversary or on early full withdrawal.
- You can opt to have interest paid more frequently to a nominated account if you wish, e.g. monthly, quarterly or half yearly. ^
- Statements at least once a year or whenever you require one to be sent to you.
- Ability to have your funds mature on a particular business day that suits you.
- AIB Internet Banking offers you the choice to receive your current account statements online instead of receiving paper statements by post. Before you can switch to eStatements you will need to be registered for AIB Phone & Internet Banking and have an AIB Code Card or Card Reader.
^ Where the option of regular interest payment is availed of, there will be a reduction in the annual rate payable as outlined in the table hereunder.
| Monthly | Quarterly | Yearly |
|---|---|---|
| 0.25% | 0.1875% | 0.125% |
Tax on Interest earned on the Fixed Term Deposit Account
We will deduct Deposit Interest Retention Tax (DIRT) at the prevailing rate from all interest earned, unless you are entitled to exemption from DIRT, and we will pay this directly to the Revenue Commissioners.
To the extent that DIRT has been deducted there is no further liability to Irish income tax, but individuals may be subject to PRSI. Deposit Interest is not liable to the Universal Social Charge.
The Bank will deduct DIRT from the accounts of non-residents unless a fully completed non-resident declaration form is held by the Bank and a minimum balance of EUR12,500 is maintained at all times in each account maintained by the non-resident.
If you or your spouse/civil partner are aged 65 or over in the current tax year, or are permanently incapacitated, and you are exempt from income tax, you may apply to have the interest on the account paid without deduction of DIRT.
Withdrawals:
With a Fixed Term Deposit Account, funds are locked in for a specific term and are unavailable for the duration of that term. No withdrawals can be made until the maturity of the term. If you think you may need access to your funds during the term, this product is not suitable for your needs.
At maturity, you may alter the term of the deposit or choose to lodge or withdraw funds to suit your requirements. Alternatively, you can arrange to have your funds rolled over for the same term. Remember to contact your branch prior to the maturity date and advise us of your instructions.
Because the funds are locked in for a specific term, you may not withdraw any of the funds during the term unless the Bank agrees, which is at the Bank's sole discretion, in which case you will incur a redemption cost. The redemption cost, which is intended to ensure that the Bank does not suffer a financial loss as a result of the early withdrawal, consists of:
Administration cost of EUR63.50 + Funding Cost
(where applicable)*
*Funding cost is made up of the amount withdrawn multiplied by the difference in the interest rate on the date of deposit and the date of withdrawal multiplied by the remaining term.
How to open a Fixed Term Deposit Account
If you would like to open a Fixed Term Deposit Account or if you would like more information, please call into your local AIB branch where a member of staff will be happy to answer any questions you may have and supply you with details of current interest rates.
View our deposit interest rates in our Related Information section
Important / Regulatory Notice
Terms and conditions apply. Interest is subject to DIRT where appropriate at the prevailing rate (for more detailed information please visit www.revenue.ie).
The calculation of the A.E.R. displayed in Fixed Term Deposit adverts assumes that the funds will remain on deposit with interest applied after 12 months- This is for term products under 12 months.
Next Steps
Related Information
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Deposit Rates
Find out more about our Deposit Account Rates