AIB increases deposit rates for savings

AIB and its subsidiary EBS have increased interest rates for deposit holders, doubling the return for regular savers.

The bank said it would apply a 2 per cent rate to its regular saver products, along with AIB Junior, AIB Student Saver and EBS Family Savings accounts.

The top rates come with caveats, applying to regular savings of up to €1,000 a month for the first 12 months. The rate drops to 0.10 per cent after this.

The changes come into effect this week. It marks the first time in more than 10 years that Irish savers can get 2 per cent interest.

The move is likely to put pressure on the other Irish banks to follow suit.

"AIB is delighted to announce significant increases on the returns we are offering to both AIB and EBS savers, including an Irish bank market leading 2 per cent for regular savers," said AIB managing director of retail banking Jim O’Keeffe.

"We are pleased to make both our savings and fixed term offerings readily accessible via the AIB Mobile App for the first time. Customers can also avail of the new increased saver rates through our AIB and EBS branch network. We will continue to keep our deposit rates and product offering under review."