Bankinter increases six-month savings rates to 2.7%

Spanish lender also announced it will increase the maximum lodgement limit on its deposit products from €200,000 to €2m

Latest figures from the Central Bank of Ireland show that Irish households hold approximately €170bn in bank accounts, with the majority remaining in current accounts earning little or no interest. Photographer: Angel Navarrete/Bloomberg via Getty Images

Bankinter has announced a series of changes to its deposit products in Ireland including an increase in its six-month fixed-term deposit rate.

For six weeks staring on June 5, the Spanish lender's six-month fixed-term deposit rate will increase from 2.60% (2.62% AER) to 2.70% (2.72% AER).

Bankinter has also announced that it will increase the maximum lodgement limit on its deposit products from €200,000 to €2m, reflecting "growing customer demand" and greater flexibility for higher-value savers.

The changes follow the launch of Bankinter’s deposit products in Ireland earlier this year and come as Irish households continue to hold significant levels of savings in low-interest accounts.

Latest figures from the Central Bank of Ireland show that Irish households hold approximately €170bn in bank accounts, with the majority remaining in current accounts earning little or no interest.

“We have seen strong demand for our deposit offering since launch, reflecting a growing awareness among Irish savers that their money should be working harder for them," said Ciarán Byrne, head of everyday banking at Bankinter. 

"However, despite increased competition in the market, many customers continue to hold significant savings in accounts earning little or no return."

In addition to launching deposit products this year as part of its continued expansion in Ireland, the bank also saw its lending across mortgage, personal loans and credit cards exceed €5bn.