AIB offers interest to online business account holders

AIB has become the first Irish bank to offer interest to business customers who maintain a credit balance in their current account provided the company commits to banking online.

The move has been cautiously welcomed by the business sector although it is being seen as part of the bigger drive to compel customers to bank over the internet, cutting costs significantly for banks.

Interest of up to 0.5% annualised percentage rate (APR) will be added to accounts each quarter, net of DIRT. The new incentive towards internet banking will kick in on September 16 on business current accounts with credit balances of more than 1.