permanent tsb today launched a new 12 month fixed term deposit account which for the first time ever will give depositors their interest first, within one month of opening their account, instead of having to wait until the end of the investment term. Called the ‘Interest First Deposit Account - 1 Year’ permanent tsb expects customers to invest up to €1 billion in the product over the next year which means the bank will pay out a total of €33.5 million (before DIRT) in interest to customers in advance.
The product has a minimum investment of €10,000, offers a capital guarantee and a leading market rate of 3.35% Gross or 3.46% AER. For someone with €1 million to invest, they will earn interest first of €33,500 or €25,125 (after DIRT) while a saver who invests €60,000 (the current average deposit of a permanent tsb customer) will receive €2,010.00 or €1,507.50 (after DIRT).
Niall O’Grady, Head of Business Strategy at permanent tsb said,
We are delighted to be the first to introduce this product to our customers. The product has no hidden agendas and does exactly what it says on the tin. Savers can decide to use their interest first to help with their cash flow situation, they may choose to reinvest it in another product or simply lodge it to their current account, the choice is theirs.