BANK of Ireland is refunding €200,000 in interest to 16,000 account holders — none of whom are over the age of 12.
The bank will repay about €200,000 to the young savers accounts after paying the wrong rate of interest on their savings.
The error occurred when the wrong interest rate code was applied to some accounts opened during the period May 2003 to February 2008.
The average refund per customer is €12.50.
The mistake was revealed following an internal monitoring process undertaken by the bank.
In a statement released yesterday the bank said: “Bank of Ireland has identified 16,000 affected accounts and is in the process of refunding the interest to each customer together with an adjustment to take account of inflation.
“Bank of Ireland apologises for this error and can assure customers that procedures have been put in place to prevent a reoccurrence.”
Anyone between the ages of 0 and 12 can open a young savers account, which was previously called a rainbow account.
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