People with deposit accounts in Irish banks 'getting a raw deal'

Vivienne Clarke

People with deposit accounts in Irish banks are “getting a raw deal”, according to financial expert Padraic Kissane.

“We've had substantial levels of increases from the European Central Bank and I think the entire banking sector in Ireland is now nearly becoming banking by order, that external parties have to order banks to act correctly,” he told RTÉ radio’s News at One.

Such behaviour by the banks was disappointing, he said. “Depositors are getting a raw deal here.”

There was over €150 billion on deposit in banks in Ireland, most of that on demand, which is the lowest interest rate achievable.

This was because there was a carryover in the mindset of people who were concerned about “getting burned.”

The purchasing value of money on deposit was decreasing quite rapidly because of inflation, he warned.

Depositors should be paid appropriately for their money, he urged. “At the moment, they're not being paid appropriately.”

It would be difficult to restore long term trust in the banks, he said. Their behaviour would indicate that they were not being fair to customers.

People were just asking for a fair return. It should be easier to invest in the EU and avail of some of the better interest rates being offered by banks in France and Belgium.