Home Personal Finance Bank of Ireland is going to raise a series of its savings...

Bank of Ireland is going to raise a series of its savings rates to put pressure on competition

Bank of Ireland is going to raise a series of its savings rates to put pressure on competition

It will also put pressure on rivals, AIB and Permanent TSB, to raise their savings rates.

It comes after the European Central Bank raised its key deposit and refinancing rates seven times since the summer.

So far, the three largest banks, AIB, Bank of Ireland and Permanent TSB, have been slow to raise deposit rates, but they have also been hesitant to introduce all seven ECB banks to new fixed and floating rate mortgage borrowers.

Irish banks have some of the lowest interest rates for savers.

There is approximately €150 billion in household savings at the three retail banks and at the credit unions.

Recently published figures from the Central Bank show that the interest rate on overnight deposits of households was only 0.03 percent in March.

The interest rate on new term deposits from households, where you have to leave the deposits in the institution for a certain period of time, rose slightly in March to 1.14 percent.

The equivalent rate in the eurozone was 2.11 pc.

Now the Bank of Ireland, led by Myles O’Grady, has raised its deposit rate again, following a move in January.

It has introduced what it calls a new SuperSaver deposit account that pays a fee of 1.5 percent for the first 12 months.

As a result, customers receive a € 100 discount on home or car insurance.

To encourage younger savers, there is no minimum monthly deposit required. SuperSaver will be available in June.

The bank also announced a 0.25 percent increase in interest rates on one-year term deposits and lifted the limit on new one-year term deposits.

Following a 0.25 percent increase in January, the Bank of Ireland is increasing rates on its Regular Saver personal deposit accounts by a further 0.25 percentage point.

On this day in history May 17

It said this will allow customers to earn 1pc on their MortgageSaver, GoalSaver and Childsave accounts, capped at €15,000. The new rate will take effect Friday.

The bank is also introducing two new one-year Advantage Fixed Term Deposit Accounts, one for retail and one for corporate clients.

Each offers a rate of 0.75%, which is an increase of 0.25 percentage points over the current one-year rate on fixed term deposits.

Susan Russell, Bank of Ireland director for retail in Ireland, said: “With a rate of 1.5 per cent, combined with a €100 discount on home or car insurance, we are doing more to reward regular savers.

“We also want to encourage those who don’t save to start that habit, even with a small amount each month.”

Until now, Permanent TSB had the best rate in the market. It offers 1.5 pcs, but this is a five-year product.

Daragh Cassidy of price comparison site Bonkers said the Bank of Ireland’s rate hike was “welcome news for pressured savers who have faced record inflation and ultra-low savings rates over the past two years”.

But he said the rates offered by Bank of Ireland and other lenders are still quite low.

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