Bank of Ireland raises interest rate on savings 

Lender said the 0.4% rise will take effect this week

A person passes an out of service ATM at a Bank of Ireland branch in Finglas village, Dublin. Bank of Ireland has apologised after a glitch led to some of its customers withdrawing or transferring more money than was in their accounts. The bank said this was down to a technical issue with its services and not a cyber attack. Picture date: Wednesday August 16, 2023.

Bank of Ireland has announced an increase in interest rates on its 12-month fixed-term deposit account. 

Taking effect from Thursday, the lender will be raising its 12-month term deposit rate by 0.4%. This means the rate will increase for fixed-rate return from 1.74% to 2.14%.

On an annual equivalent rate (AER) the hike will see it rise from 1.75% to 2.15%.

Bank of Ireland added that existing fixed-term deposit account holders will continue to earn interest at their original rate until the end of their term.

It also noted that all Advantage Fixed Term Deposit accounts, whether six, 12 or 18 months, allow customers to access up to 25% of their deposited funds during the term.

Bank of Ireland said there will be no change for regular savers, with its SuperSaver account continuing to offer 3% AER fixed for the first 12 months. 

After this period, the prevailing regular saver interest rate applies on balances under €30,000, which is currently 2%.

The increases comes ahead of the European Central Bank's meeting this month, with policymakers leaning toward keeping interest rates unchanged, postponing their verdict on whether the fallout of the Iran war warrants a response.