Fixed Term Deposits

At certain stages in the growth of your business you may find that you have a substantial sum of money to deposit. A Fixed Term Deposit Account is a popular option for depositing these funds.

How a Fixed Term Deposit Account works:

• A Fixed Term Deposit Account offers a fixed rate of interest for the period of the investment. The choice of deposit terms may vary from 1 day to 6 years.
• There is a minimum investment of EUR25,000 required, with no maximum amount.
• The account can be opened easily.
• Interest on a Fixed Term Deposit Account will be liable to DIRT, where applicable, at the prevailing rate (for more information please visit www.revenue.ie).

Benefits of a Fixed Term Deposit Account:

• Security
  You have the security of knowing that your business savings are earning a fixed rate of interest.
• Flexible
  A range of investment periods are available to suit your business needs. You may also add to your investment amount before maturity at which stage a new interest rate will apply.
• Convenient
  Interest can be credited to your own, or another account, or paid by cheque on maturity or on a monthly, quarterly or half-yearly basis. You are also provided with a statement at a frequency that suits you.

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

Lodgements & Withdrawals:

Additional mid-term lodgements can be made. This will affect the interest rate on the account. The prevailing rate on the day will apply to this additional lodgement. The minimum additonal lodgement amount which must be lodged is €1,000.

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.

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:

*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.

Maturity

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.

How to open a Fixed Term Deposit Account

• All business clients may 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.
• Call into any branch to complete a Fixed Term Deposit Account application form
• Normal business account opening procedures apply - please see our related information section

Important / Regulatory Wording

Terms and conditions apply. Interest is subject to DIRT where applicable at the prevailing rate (for more detailed information please visit (www.revenue.ie)

• Fixed Term Deposit Accounts Terms and Conditions
• Terms and Conditions of Notice Deposit Accounts

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