AIB to stop paying interest on many savings accounts and to start charging more firms to lodge money

AIB is already charging negative interest rates to wealthy customers and larger businesses who have more than €3m on deposit.

AIB is to stop paying interest on a raft of everyday customer savings accounts and aims to make more of its wealthy and corporate customers pay to lodge money with it in a bid to stem its losses from rising deposit levels.

In a letter sent to customers, AIB said it will be cutting its gross interest rates on 13 savings and deposit accounts in January. Out of that number, 10 savings products will attract zero interest, albeit from existing minimal rates.