Flexi Deposit Account

This is a deposit account which offers fixed rates of interest over your chosen period of investment while also allowing instant access to a portion of your savings, without penalty or charges.

How a Flexi Deposit Account works:

With a Flexi Deposit Account, euro denominated funds are set aside for a fixed period of time ranging from 2 months to 2 years. Interest rates for the Flexi 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 Flexi Deposit Account for the duration of your chosen term. During the term you have the option to make a once-off withdrawal of up to 50% of your savings without any penalty.

At maturity you have the flexibility to withdraw or reinvest some or all of your funds depending on your current needs. You may also choose to add additional funds at this time (Subject to a minimum lodgement amount of EUR1,000) The minimum initial lodgement is EUR1,000. No mid-term lodgements are allowed.

The benefits for you:

• During the term you have the flexibility of being able to access up to 50% of your total funds in one withdrawal, without incurring any bank charges or penalties. ^
• Flexibility in deciding how long you'd like to save your money. Choice of eight convenient terms - the terms are from 2 months to 24 months.
• 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 to a nominated account if you wish
• Statements at least once a year or whenever you require one to be sent to 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 a cheque or other negotiable instrument is lodged to the account and is returned unpaid we will debit the Flexi Deposit account in respect of the unpaid. This will be deemed to be the once off withdrawal for that term and will therefore mean that future withdrawals during that term will incur a Redemption cost.

Tax on Interest earned on the Flexi 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 Flexi Deposit Account, funds are locked in for a specific term. If you think you may need access to more than 50% of your funds during the term, this product is not suitable for your needs.

You can withdraw up to 50% of your funds in a once off withdrawal during that term without incurring a penalty.

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. You may also choose to add additional funds at this time. (Subject to a minimum lodgement amount of EUR1,000). Remember to contact your branch prior to the maturity date and advise us of your preferred re-investment instructions. In the absence of your advice, your funds will be placed on AIB's prevailing standard overnight rate.

Because the funds are locked in for a specific term, a withdrawal in excess of the penalty fee feature (once-off withdrawal up to 50%) may only be done so with the agreement of the Bank, 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 Flexi Deposit Account:

If you would like to open a Flexi 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 applicable at the prevailing rate (for more detailed information please visit www.revenue.ie). The calculation of the A.E.R. displayed in Flexi Deposit Account adverts assumes that the funds will remain on deposit with interest applied after 12 months - This is for term products under 12 months.

• Flexi Deposit Accounts Terms and Conditions

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