Bank of Ireland becomes the first Irish bank to follow the ECB's lead and reduce deposit rates, marking a shift in the Irish banking landscape.
Bank of Ireland has decided to cut rates on certain deposit products, marking its first such move since the European Central Bank ( ECB ) started to cut official borrowing costs last June. The largest retail bank in the State by assets said on Tuesday that it is reducing the interest rate on its 12 and 18-month fixed-term deposits by a quarter of a percentage point from Friday. That will see the 12-month rate fall to 2.25 per cent and the annual rate on the 18-month product decline to 2.
73 per cent. No other savings products are affected and Bank of Ireland’s top rate of 3 per cent rate on its so-called supersaver product, applicable for the first 12 months after setting up such an account, remains. “Customers who are already in the process of opening a 12 or 18-month term deposit account can still avail of the existing rates if they open their account by 8 January,” the bank said.The ECB has cut its key deposit rate by a total of 1 percentage point to 3 per cent since June and is expected by financial markets to continue to reduce over the course of 2025 to leave it at 1.75 by the end of the year.Irish banks had lagged European peers in passing on deposit rate increases as the ECB increased key rates by 4.5 percentage points between July 2022 and September 2023 – resulting in savers effectively subsidising borrowers as bank were also behind the curve in increasing mortgage rates
BANK OF IRELAND DEPOSIT RATES ECB INTEREST RATES
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How To Make The Most Of Your Christmas LeftoversSTELLAR Magazine, Irish Fashion, Irish Women's Magazine, Irish Beauty, shops in Ireland, celebrity news, glossy magazine, Fade Street, make-up tips, Irish style, Vip Magazine Group
Read more »
Why Can't Fashion Quit Smoking?STELLAR Magazine, Irish Fashion, Irish Women's Magazine, Irish Beauty, shops in Ireland, celebrity news, glossy magazine, Fade Street, make-up tips, Irish style, Vip Magazine Group
Read more »
Here's What Team STELLAR Is Loving This WeekSTELLAR Magazine, Irish Fashion, Irish Women's Magazine, Irish Beauty, shops in Ireland, celebrity news, glossy magazine, Fade Street, make-up tips, Irish style, Vip Magazine Group
Read more »
Here's What Team STELLAR Is Loving This WeekSTELLAR Magazine, Irish Fashion, Irish Women's Magazine, Irish Beauty, shops in Ireland, celebrity news, glossy magazine, Fade Street, make-up tips, Irish style, Vip Magazine Group
Read more »
Tonnes Of Leftover Christmas Chocolate? Here's What You Should Do With ItSTELLAR Magazine, Irish Fashion, Irish Women's Magazine, Irish Beauty, shops in Ireland, celebrity news, glossy magazine, Fade Street, make-up tips, Irish style, Vip Magazine Group
Read more »
The Irish Times view on the ECB rate cut: an ominous signThe bank’s latest cut outlook should act as a wake-up call for all member states
Read more »