Comparing AIB fixed term deposit account with State Savings (3 years)

[harleysmom]

I wanted to compare these as investment vehicles for savings that will not be needed for 2-3 years. I know that Raisin.ie & other alternatives offer better rates (4%) but I also know that there is a grey area around their deposit protection. I already invest in VWCE via degiro but am looking for somewhere to put 15k that will otherwise be sitting in my savings account for 3 years. Is the maths below correct in saying that I'll have more money after 2 years of AIB fixed term than I would have with 3 years of state savings?

AIB 2 years Fixed Term Deposit Account

Details: 2 years fixed term, 3% gross interest p/a, DIRT @ 33% paid annually

Starting balance: 15,000
Gross interest after year 1: 450 (15,000 x 0.03)
Net interest from year 1: 301.5 (450 x 0.67)
Starting balance year 2: 15,301.50
Gross after year 2: 459.05 (15,301.50 x 0.03)
Net interest after year 2: 307.56
Balance at end of year 2: 15,609

State Savings

Details: 3 year fixed term, 4% total return, tax free (no DIRT)

Starting balance: 15,000
Balance at end of year 3: 15,600 (15,000 * 1.04)

Summary
The AIB 2 years fixed term deposit account has better returns after 2 years than state savings has after 3 years.

 

[damegultom]

@harleysmom Can I ask - is AIB a wise decision to go with? I have seen other users comment that Raisin is best. I currently have a lump sum and am looking to earn some returns. Any advice is appreciated!