Bank of Ireland apologises for misleading ads about savings accounts

Customers' deposits will move to a 0.1% variable rate after 12 months instead of a 2% rate mentioned in some ads

The fine print of the ads said deposits would move to a 2% rate after a year when the correct rate is just 0.1%.  Picture Colin Keegan, Collins Dublin

Bank of Ireland has apologised to customers over two confusing and misleading ads that let savers believe they would move to an attractive rate for their deposits.

The bank said it is writing to approximately 12,800 customers who opened a lump sum savings account between September 10 last year and March 31 this year to apologise for the error. They said they have also informed the Central Bank of Ireland about the matter.

The ads, which appeared in a mix of print, radio and in-branch advertising did not meet the standards of the Consumer Protection Code in relation to accuracy and clarity, Bank of Ireland said.

The first issue related to an ad produced for print advertising and in-branch posters to encourage consumers with lump sums to open a deposit account. In the small print, Bank of Ireland, which earned a record €3.65bn last year in interest income, meant to tell customers they would move to the variable rate of 0.1% after 12 months but instead referred to a rate of 2% offered on their Super Saver Account.

The second issue related to a radio ad that ran in September and October of last year. Bank of Ireland said the ad was to encourage savings generally but did refer to terms and conditions for the Super Saver Account which offers a rate of 3% for 12 months rolling to 2%.

The bank said this ad was not clear and was potentially confusing, because consumers were not told that the rates mentioned were linked to just the Super Saver Account.

It means customers will be switched to the lower rate with Bank of Ireland saying the information on their website, the letters customers received about the product, terms & conditions when they applied and a confirmation of lodgement letter all included correct product details.

A spokesperson for Bank of Ireland told the Irish Examiner that no customers had complained or raised queries about the matter before today.

"Bank of Ireland sincerely apologises for these errors," they said. "Accuracy and clarity in relation to all advertising is important for consumers, and also for the bank. Consumers should be able to easily understand the terms and conditions of any products that they hold, and the issues in respect of these two advertisements are deeply regretted."

Ireland's main banks have recorded record profits on the back of a surge in interest income they earn on elevated rates set by the European Central Bank. It has led to repeated calls for banks to offer more attractive deposit rates. Irish households have more than €150bn on deposit with banks, much of which is sitting in low-interest accounts.