Special Term Account Terms and Conditions
Terms and Conditions for AIB Special Term Accounts (STAs)
STAs are governed by Section 264A of the Taxes Consolidation Act 1997.
We can change these conditions, except for conditions, which are imposed by statute or regulations made by the Revenue Commissioners ('statutory conditions'). If we are making any changes we will give you 30 days notice by such means as we consider appropriate. The statutory conditions may be changed by statute or regulations made by the Revenue Commissioners. 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.
Statutory Conditions
To qualify as an STA the following conditions prescribed by Section 264A of the Taxes Consolidation Act 1997 (as may be amended or extended from time to time) must be satisfied.
- The account must be opened and designated by the Bank as a medium term STA (3 years) or a long term STA (5 years).
- The account can only be denominated in euro.
- You must be an individual aged 16 years or more to open or hold an STA.
- The account must be opened by and held in the name of the individual beneficially entitled to the interest payable on the account.
- An STA may be held jointly by not more than two individuals.
- Except in the case of married couples, you may not simultaneously hold, whether solely or jointly, another STA. Married couples may hold two joint STAs in their names.
- No withdrawals can be made from STAs during the term of the account. (Except where the customer has chosen to have interest paid into another nominated bank account, in which case only interest may be withdrawn).
- Before you open your STA you must complete a declaration in the form prescribed by the Revenue Commissioners.
- If any of these conditions cease to be satisfied the account will cease to be an STA.
General Conditions
The account can only be opened by residents of the Republic of Ireland. You must have an AIB Personal Bank Account, AIB Cashsave Account or AIB Demand Deposit Account to open an AIB Special Term Account.
Term There are two types of STA:
- Medium Term, where the deposit is to be held in the account for 3 years; and
- Long Term, where the deposit is to be held in the account for 5 years.
Lodgement
- You can only make one lodgement of not less than EUR 6,000 and no more than EUR 25,000 in cash or cleared funds when you open your STA.
- No additional lodgements to the account will be accepted.
Breakage
The account will cease to be an STA if any of the statutory conditions cease to be satisfied. Where that occurs, the Bank will deduct from the account an amount equivalent to the amount of relevant tax (DIRT) which would have been deducted as if the account had never been an STA and past interest was being paid on the date of the occurrence. This deduction will take into account all tax which has already been deducted. All interest paid after the occurrence will be liable to deduction of DIRT. The STA will then be closed and funds transferred as per your instructions. Where the interest option is chosen and a breach occurs DIRT will be clawed back from the principal balance. If you wish to close your STA you must give us 30 days' notice.
Interest
- Interest can be either credited to your STA or paid into a nominated account. This option can only be taken at the time of account opening.
- We will pay interest on the balance of your STA calculated on a daily basis based on a 365 day year.
- We will pay interest into your STA half-yearly on the first working day in April and October.
- The interest rate may vary during the term of the STA.
We will publish our variable STA interest rates and any changes by whatever means we consider appropriate.
- Interest earned in each tax year will be DIRT free for the following amounts:
In the case of a medium term STA up to EUR 480; and
In the case of a long term STA up to EUR 635.
Interest earned in excess of these amounts will be subject to DIRT at the prevailing rate.These figures may be changed by statute.
- If you or your spouse is aged 65 or over in the current tax year, or you or your spouse is permanently incapacitated and satisfy the conditions exempting you from income tax, you may apply to have the interest on the account paid without deduction of DIRT.
- Details of interest paid, along with details of the person to whom the interest was paid, may be reported to the Revenue Commissioners, in accordance with the requirements of S.891B of the Taxes Consolidation Act, 1997.
Death of a Joint Customer
- Upon the death of a Joint Customer, the STA will close.
- We will hold the balance on the account to the order of the survivor, subject to production of a tax clearance certificate, where relevant. But if, before payment, we receive a conflicting claim from the estate of the deceased customer, we will hold the balance to the order of the estate and the survivor.
Maturity
We will give you written notice before your Special Term Account matures outlining options for your funds at maturity. You can choose to:
(a) Reinvest all funds to a maximum limit of EUR 25,000.
(b) Reinvest all funds plus additional funds to a maximum of EUR 25,000.
(c) Reinvest part of the funds (minimum EUR 6,000 and a maximum of EUR25,000).
(d) Transfer all funds to a nominated bank account.
If you chose options (a), (b) or (c) above you will need to complete a new declaration form. If we are unable to contact you or if we do not receive instructions from you by the date that your Special Term Account matures then we will open an AIB Demand Deposit Account in the same name as the Special Term Account. This account will be governed by the Terms and Conditions for AIB Demand Deposit Accounts which are available from any branch of AIB and are outlined below.
Allied Irish Banks p.l.c. is regulated by the Financial Regulator.