The bank is raising the interest rate on its 12-month fixed-term deposit by 0.40 percentage points.<\/p>\n
This means the rate will go from 1.75pc (annual equivalent rate) to 2.14pc.<\/p>\n
The increase takes effect from today.<\/p>\n
Existing fixed-term deposit account holders will continue to earn interest at their original rate until the end of their term.<\/p>\n
All Advantage Fixed Term Deposit accounts \u2013 whether 6, 12 or 18 months \u2013 allow customers to access up to 25pc of their deposited funds during the term, the bank said.<\/p>\n
\u201cFor regular savings, our SuperSaver account continues to offer 3.00pc AER fixed for the first 12 months. After the first 12 months, the prevailing regular saver interest rate applies on balances under \u20ac30,000, currently 2.00pc.\u201d<\/p>\n
Daragh Cassidy of price comparison site Bonkers.ie said the mainstream banks were coming under pressure from online banks Monzo, MoCo and Bankinter which all have competitive savings rates.<\/p>\n
MoCo is part of Bawag which is due to buy PTSB, and Bankinter has established Avant Money here as a fully-fledged bank.<\/p>\n
Monzo said this week it had 100,000 customers here on a waiting list ready to sign up for its current account and savings products.<\/p>\n
Mr Cassidy said: \u201cIt\u2019s obviously welcome to see savings rates go up. Albeit from a low enough base.<\/p>\n
\u201cSeveral new providers such as Moco, Monzo, and Bankinter are all now quite active in the savings space in Ireland, so this is perhaps a response to increased competition.\u201d<\/p>\n
However, Mr Cassidy said the new Bank of Ireland 2.15pc rate of interest does not match inflation.<\/p>\n
\u201cAnd of course you\u2019ll pay DIRT of 33pc on any gains that you make. So leaving your money in a product like this is still losing you money in real terms,\u201d he said.<\/p>\n
But he said the product is a decent place to put your rainy day fund as it allows customers access to 25pc of their money before the term ends<\/p>\n
Mr Cassidy said it was better than getting almost zero interest by leaving savings in a current account.<\/p>\n
However, anyone with a longer-term savings goal, or who is putting away their child benefit payments for their child\u2019s future education, should really look at other options such as investing, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"The bank is raising the interest rate on its 12-month fixed-term deposit by 0.40 percentage points. This means…\n","protected":false},"author":2,"featured_media":401753,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,3361,61,60,3362],"class_list":{"0":"post-401752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-charlie-weston","10":"tag-ie","11":"tag-ireland","12":"tag-money-experts"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/401752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=401752"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/401752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/401753"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=401752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=401752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=401752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}