New PTSB mortgage cashback current account

independent.ie/business/pers … 67575.html

So on drawdown you get 2% cashback
and
2% back on each monthly repayment. They say it works out at c. 0.25% discount on the variable rate. I’d like to see some maths on this!

Catch:
Must open a current a/c with them and pay wages into it (and pay whatever fees they charge)

Other banks have similar offers, packaged in different ways
e.g. Ulster Bank give 1,500 for ‘legal fees’ on drawdown and 0.1% off their standard variable if you pay your wages into their current a/c

Just looking at their Rates here

permanenttsb.ie/borrowing/m … est-rates/

Quite a bit higher than many other banks, so that ‘saving’ above will be wiped out fairly quickly with larger repayments.

Yeah, this looks like another attempt to compete via confusing people rather than via competitive rates. Their variable rates are almost 1% more than what you can get elsewhere.

Indo article said the cashback equated to 0.25% off variable whereas RTE say it’s 0.1% off

rte.ie/news/business/2017/0 … repayment/

Yeah, think RTE’s closer to right. 300,000 * 0.0025 = 750, but assuming repayments of 1500, 2% of 1500 is 30, so 360 a year. For the example, it looks like it’s equiv to 0.12% reduction. If the repayment was higher (due to a very short term, say) this would change. If the term was 10 years, then it’d be about 0.25% reduction, but that’s not what the Indo’s example says, and few mortgages are 10 years.