IL&P to cut SSIA rate by 0.5%

IRISH Life & Permanent is to hit SSIAs hard by cutting the deposit rate by 0.5%.

Ordinary deposits have been reduced in line with the 0.25% cut in rates recently announced by the European Central Bank.

The cut of 0.5% on the SSIAs is in line with other financial institutions and highlights concerns the banks are continuing to rip off consumers.

Last week IL&P cut just 0.15% off the cost of the variable home mortgage in line with the reduction announced earlier by Bank of Ireland.

Those decisions cost borrowers millions of euro annually.

Commentators have said tackling banks on the cost of services is missing the point.

It is the way they manage mortgage and deposit cuts that they continue to deprive consumers of millions , they point out.

At this stage none of the big players in the mortgage market have passed on the full interest rate cut to consumers.