Bank of Ireland to offer 3% savings rate
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Bank of Ireland has announced two new savings products, offering rates of 3%.
The move comes just days after digital bank Revolut announced a savings account offering up to 3.49% for top subscribers.
Bank of Ireland is introducing a two-year fixed-term deposit account with a rate of 3%, an increase of 1% on the current two-year fixed-term deposit rates.
It is also introducing a one-year fixed-term deposit account with a rate of 2.5%, an increase of 0.5% on the current one-year rate.
The new rates are available from June 6.
CEO of the bank’s retail Ireland division, Susan Russell, said the new products do not require a current account and no fees or subscriptions to access the rates.
"Like all our products, they’re backed by our customer service offering including a nationwide branch network and our contact centres," she said.
The Irish banking sector has offered low interest rates on savings products with hopes that competition would stimulate increased offerings.
Irish households have more than €150bn on deposit with Irish banks, with the majority of the money in accounts that pay almost nothing in interest.
Daragh Cassidy of Bonkers.ie said the ECB is likely to start cutting interest rates over the coming months, and the higher savings rates that are currently available may not be around for much longer.