Bank of Ireland to increase interest rates for savers

Michael Bolton

Bank of Ireland announced a further increase to interest rates on a range of savings and deposit accounts.

The interest rate on a range of accounts will go up on September 8th.

Among the changes announced is an increase to 3 per cent on Super Saver accounts from 2 per cent for the initial 12 months.

After the initial 12 months, a rate of 2 per cent, which was previously 1 per cent, will apply on balances up to €30,000.

Minister for Finance Michael McGrath said last week that he expected to see rate rises for depositors in the next few weeks.

CEO of Bank of Ireland, Susan Russell says the bank will keep rates under review into the future.

“The market has gone from eight years of negative rates and, now that savers can benefit from better rates, we are encouraging customers to take action, start a savings habit or move money into interest earning products or accounts. Customers can get a better return and enhance their financial wellbeing,” she said.

There have been growing calls for banks to pass on the European Central Bank rate rises to savers.

The ECB has increased the deposit facility rate paid to banks on surplus deposits lodged with the Central Bank to 3.75 per cent since July of last year.