Long-term saving rates still lagging behind euro area average despite reaching 15-year high

Irish savers continue to switch to long-term accounts as new business rises 44% in the month

Despite an almost 15-year high, Irish saving rates still lag significantly behind the euro area average of 3.27% and have been found by rating agency Standards and Poor to have one of the worst transmissions of deposit rates to consumers out of the entire eurozone, US and UK. Photo: Leah Farrell/Rollingnews.ie

Interest on new long-term household deposits has risen to its highest rates since January 2009 as savers shift from overnight and current accounts to ones with a longer, fixed maturity.

New figures from the Central Bank show the average interest rate with an agreed maturity rose by 5 basis points to 2.59% in October, reflecting an almost 15-year high, according to the regulator.