Fixed Term Deposit Accounts Terms and Conditions
The use of your Account is governed by the following terms and conditions. Please note that there may be alternative products which have different benefits, restrictions and/or cost or income options. If you want any further information please ask at any AIB branch.
Definitions
In these Conditions:
Account means any fixed term deposit account opened by you with us.
Agreement means these Conditions, the application form completed by you when applying for an Account, and all signing instructions in respect of your Account that you give us from time to time.
Conditions means these terms and conditions as amended, extended or replaced from time to time.
These terms and conditions are in addition to the terms and conditions of the banker-customer relationship implied by law unless they conflict, in which case these terms and conditions will apply.
Joint Account means an Account opened in more than one name.
Joint Holders means the persons in whose names a Joint Account has been opened.
Any reference in these Conditions to "you" and "your" means "the Customer" and includes the Customer's personal representatives and successors and (where appropriate) includes any Joint Holder (see Condition 6 below).
Any reference to "we", "us" and "our" and "the Bank" means Allied Irish Banks, p.l.c. and includes our successors and assigns.
Maturity is the expiry date of the Term of the Account.
Minimum Balance is the minimum initial lodgement requirement as prescribed by the Bank from time to time to be made on the opening of the Account which minimum balance requirement is to be maintained and the Account to operate in credit at all times.
Term is the duration of the account. There are optional terms available as fixed by the Bank from time to time.
1. Opening the Account
1.1 Before you can use your Account you must provide us with information and documentation to satisfy the "establishing identity" requirements under legislation to combat money laundering and terrorist financing.
1.2 We reserve the right not to open an account.
2. Operating the Account
2.1 The Account Holder chooses the length of the Term on the opening of the Account or on the expiry of the existing Term and on re-investment and the opening of a new Account.
2.2 The initial minimum deposit must be made on commencement of the Term and the minimum balance as prescribed by the Bank from time to time must be maintained.
2.3 The Account is to be held for the full Term of the deposit subject to the provisions in respect of withdrawals set out in clause 4.4 below.
2.4 There are no fees and charges applicable to the Account. However in the event of early withdrawal which will only be permitted at the discretion of the Bank, redemption costs will apply.
3. Lodgements
3.1 On opening of the Account we will accept for credit of your Account all cash, cheques, drafts and other negotiable instruments payable to you.
3.2 We may accept cheques payable to third parties as lodgements to your account at our absolute discretion. You will compensate us for any loss we may suffer in doing so.
3.3 We may reverse any credit made to your Account if the item so credited is not paid or is recalled by the paying bank (including when we are the paying bank) or is returned by us due to mistake, fraud or the operation of any applicable clearing rules.
3.4 We reserve the right to refuse to take a lodgement to your account.
3.5 The Bank may at its discretion accept further lodgements to the Account (besides the initial deposit) up to such limits as to value and frequency as determined by the Bank during the Term of the Account. In such cases the overall rate of interest on the account may be adjusted to reflect changes in the market rates and such composite rate of interest applied for the aggregate balance for the remainder of the term as the Bank may fix at the time.
3.6 Each re-investment of moneys standing to credit of the Account on maturity is a new Account of the amount re-invested for the term of such re-investment at the rate of interest fixed by the Bank for the term.
3.7 On account opening or before each Maturity Date of the Account you may opt to issue an individual instruction for re-investment, or to issue an instruction for automatic re-investment until further notice. An individual instruction for re-investment may be accepted by telephone provided the Customer establishes identity to the satisfaction of the official of the Bank taking the call.
3.8 In the absence of any individual or automatic re-investment instruction or instruction for withdrawal, the balance standing to credit of an Account on maturity of the Term (with or without interest accrued thereon, as applicable) will pending instructions from the Customer be held as an overnight deposit at the rate of interest of the Bank current for such deposits of such amounts from time to time.
3.9 As interest is calculated daily and paid in arrears, lodgements of cleared funds accepted for your account prior to the *applicable cut-off time on a Business Day are credited to your account and shall accrue interest from the date of receipt of such funds. Lodgements of cleared funds posted after the daily cut-off time on any Business Day are deemed to have been received by us on the next Business Day. No interest will be paid on any cleared lodgement posted to the account after the cut-off time where the account is closed on the same day (that is, the next Business Day). *Cut-off times vary dependant on the type of instruction furnished and whether or not the lodgement is initiated electronically. For applicable cut-off times please refer to the appropriate paper payment application form, the Phone and Internet Terms and Conditions for electronic payments and the notices displayed in branches.
4. Withdrawals
4.1 All withdrawals from your Account will be subject to the signing instructions that you give us in such form and manner as we may prescribe.
4.2 Only cleared balances may be withdrawn. Withdrawals using an ATM card, standing order and direct debit facilities are not available on the Account.
4.3 When you lodge cheques, drafts or postal orders to the Account, the amount of the lodgement is shown on the account on the day of the lodgement. However, at that time we may not have received value for them. We call such items 'uncleared effects' until we have received value. You may not draw against 'uncleared effects until we have received value.
4.4 Any withdrawal during the existing Term of an AIB Fixed Term Deposit at the request of the Customer before its maturity date is a breach of these conditions, will only be permitted at the discretion of the Bank and will involve an administration cost besides an amount which represents payment for any funding loss incurred by the Bank of replacing the amount withdrawn at the time (together "redemption cost").
4.5 In the event of a withdrawal which results in the balance of an existing Account falling below the Bank's minimum balance requirement at the commencement of the Term, the balance on its Maturity Date may be transferred to an Access Deposit 30 Account. The Bank's current Conditions for Notice Deposit Accounts including an Access Deposit 30 are set out in this website.
5. Interest
5.1 The interest rate applied to the Account is fixed for the term and will be the rate applicable on the date the initial lodgement is made to the Account and will apply until the maturity date subject to 5.4 below where additional lodgements are permitted. Details of applicable interest rates are available from our branches.
5.2 Interest is calculated and accrued each day based on the balance in the Account.
5.3 Interest is paid into the Account at the end of the term, but not later than the twelve month anniversary of the opening of the Account. Where the Account has a term in excess of one year interest shall be paid annually on the Account on the anniversary date.
5.4 Where additional lodgements are permitted to be made by you during the Term of the Account (as per 3.5 above) a new rate of interest shall apply. The new rate of interest is the weighted average of the existing balance and interest rate, plus your additional funds as lodged and applicable rate. This 'composite rate' will apply to the new balance on the Account for the remainder of the term.
5.5 Interest is paid or credited on the last day of the Term or on earlier full withdrawal which will only be permitted at the discretion of the Bank. If the Term is in excess of 364 days interest shall be paid on the anniversary of the opening of the Account on commencement of the Term and on the maturity date or on earlier full withdrawal which will only be permitted at the discretion of the Bank.
5.6 It is possible to have interest paid into a nominated account on maturity or on the anniversary of the Account if the term of the Account is longer than one year.
5.7 An option for a regular payment of interest is available, subject to an adjustment in the rate of interest payable.
5.8 Payment or crediting of interest is subject to deduction of Deposit Interest Retention Tax (DIRT) at the prevailing rate of tax.
5.9 Companies (within the charge to corporation tax), Pension Schemes and Charities may receive interest without deduction of DIRT, by providing the Bank with the tax reference number assigned to them by the Revenue Commissioners.
5.10 If you, or your spouse, is aged 65 or over in the current tax year, or permanently incapacitated and would otherwise satisfy the conditions exempting you from income tax, you may apply to have the interest on the account paid without deduction of DIRT.
5.11 Interest payments may be reported to the Revenue Commissioners under Section 891B, Taxes Consolidation Act 1997, in accordance with Regulations introduced by S.I. No. 136 of 2008.
5.12 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 the account provided such account was opened prior to 2nd November 2009 . Effective 2nd November 2009 the minimum account opening balance is EUR25,000 which minimum balance must be maintained at all times in the account. The minimum balance requirement applicable will apply separately to each account that a customer holds. Aggregation of balances will not be allowed. If an account balance falls below the minimum threshold applicable the account will revert to paying DIRT at the prevailing rate. In the event that the account balance subsequently rises above the minimum threshold applicable the account holder will have to re-apply for exemption and provide fresh confirmation of residential status.
5.13 Where interest is paid to an individual resident in an EU Member state (other than the Republic of Ireland) or certain dependant territories, that interest will be reported to the Revenue Commissioners in accordance with the European Union Council Directive 2003/48/EC (EU Savings Directive).
6. Joint Accounts
Where the Customer comprises more than one person then:-
(a) Payments from a Joint Account will only be made in accordance with the latest signing instructions governing the operation of the Joint Account. Warning: If you instruct us to make payments from a Joint Account on the signature of some but not all of the Joint Holders money in the Joint Account may be withdrawn without the knowledge of all Joint Holders.
(b) The Joint Holders will be jointly and severally liable for any balance owing including accrued interest and all applicable charges on a Joint Account and for any debts arising from withdrawals by the Joint Holders made in accordance with the latest signing instructions. Warning If you instruct us to make payments from a Joint Account on the signature of some but not all of the Joint Holders money in the Joint Account may be withdrawn without the knowledge of all Joint Holders.
(c) on the death of any Joint Holder any money for the time being standing to credit of the Joint Account will subject to the compliance with any statutory requirements be paid to or to the order of the survivors or the sole survivor of any Joint Holder, without prejudice to our right of set-off or any other of our rights acquired by operation of law;
(d) Correspondence and notices in relation to the Joint Account will be sent by the Bank to the address of the first named Joint Holder unless all of the Joint Holders direct otherwise in writing. Such correspondence and notices will be deemed to have been received by or served upon all of the Joint Holders.
(e) Joint Holders may authorise any third party to operate the Joint Account in accordance with our procedures.
(f) If we become aware of a dispute between the Joint Holders we may cease to permit operation of the Joint Account until we receive new written signing instructions from the Joint Holders. However, we are not obliged to do this and may, notwithstanding any dispute, continue to rely on the existing signing instructions unless and until we decide to cease to permit operation of the Joint Account pending receipt of new instructions from the Joint Holders.
7. General
7.1 We shall neither be in breach of our obligations under the Agreement nor liable for any loss, damage or other liability suffered by you or any other person if we delay or fail to perform our duties and obligations to you because of circumstances beyond our reasonable control (including but not limited to acts of God, fire, acts of government, war, civil commotion, inability to communicate with third parties, failure of any computer or telecommunications system, or failure of any payment, settlement or clearance system, labour disputes or the acts or omissions of our agents or any other third party).
7.2 We may in addition to any other similar right we may have, at any time without notice to you, set off any credit or debit balance in your Accounts against any debit or credit balance on any other account held by us in your name.
7.3 You will not be entitled to draw on one account in reliance on the balance in another account.
7.4 We will comply with our obligations under the Data Protection Acts, 1988 and 2003 (as amended from time to time) as regards relevant data in our possession relating to you. Subject to you paying any applicable fee, you have the right under those Acts to obtain a copy of the personal data that we hold about you.
7.5 We may disclose information about you and the Accounts to any of the companies in the AIB Group.
7.6 You will be liable to indemnify us for any loss, damage, cost or expense which we may incur in connection with the collection of cheques and other items on your Accounts or in connection with any breach of these Conditions by you.
7.7 You will be deemed to have received any notice sent by us to the last address notified by you two business days after dispatch by ordinary post, or immediately upon hand delivery.
7.8 We may record or monitor phone calls between you and us so that we can check instructions and make sure that we are meeting our service standards and to ensure the security of our business and that of our customers and staff for the purposes of training our staff.
7.9 Notwithstanding any other provision in these terms and conditions, we may take whatever action we consider appropriate to meet our obligations, either in Ireland or elsewhere in the world, relating to the prevention of fraud, money laundering, or terrorism and to the provision of financial and other services to persons who may be subject to sanctions. This action may include, but is not limited to, investigating and intercepting payments into and out of your Account and making enquiries to establish whether a person is subject to sanctions. This may result in a delay or failure to execute instructions received from you or in the receipt of cleared funds. You acknowledge and agree that, to the extent permitted by law we shall not be liable for any loss damage or other liability suffered by you or any third party which arises as a result of taking such action.