PTSB to offer customers interest of 2.75% upfront as part of new saving account

PTSB said customers can receive interest upfront as a lump sum within the first month of opening the account. Picture Andres Poveda

PTSB has launched a new personal Interest First deposit product paying 2.75% AER for 1-year fixed term savings.

The European Central Bank (ECB) recently cut its main savings rate by 25 basis points, which will impact on variable savings rates. The last few months have seen several new offerings for Irish savers in response.

Last month, challenger bank Revolut announced its further expansion into the Irish market with the launch of new instant access savings accounts, with rates up to 3.49% AER available to customers.

Launching its new product on Friday morning, PTSB said customers can receive interest upfront as a lump sum within the first month of opening the account.

“Customers can then earn interest on their interest by reinvesting it in another savings account, if they wish to do so,” it said.

“They also have the option of withdrawing the money by transferring it to a current account (or a bank account that can receive inbound transfers) or receiving a cheque payment," PTSB head of retail distribution Eddie Kearney said.

"Our Interest First deposit product is the only of its kind in the Irish market."

The product was initially introduced in 2021, with PTSB saying that it has been brought back due to consumer demand.

A minimum balance of €5,000 applies and the product is only available to personal customers. 

In the event of the customer making a withdrawal before the end of the fixed term, an early withdrawal charge will apply and any interest that was paid upfront in respect of the remaining term will be deducted from the account balance, and the account will close. PTSB added that partial withdrawals are not permitted.