Bank of Ireland is raising the interest rate on its 12-month fixed-term deposit by 0.4%.

The bank said the interest rate on its 12-month Advantage fixed-term deposit account will rise from 1.75% to 2.15%

The increase takes effect from today.

Bank of Ireland said that existing fixed-term deposit account holders will continue to earn interest at their original rate until the end of their term.

The bank said its “SuperSaver” account continues to offer 3% AER fixed for the first 12 months. After the first 12 months, the prevailing regular saver interest rate applies on balances under €30,000, currently 2%, it added.