Bank of Ireland raises rate on savings account in move seen as response to neobanks

"It's obviously welcome to see savings rates go up. Albeit from a low enough base. Several new providers such as Moco, Monzo, and Bankinter are all now quite active in the savings space in Ireland, so this is perhaps a response to increased competition."

"The new Bank of Ireland 2.15% rate of interest does not match inflation. And of course you'll pay DIRT of 33% on any gains that you make. So leaving your money in a product like this is still losing you money in real terms."

"The product is a decent place to put your rainy day fund as it allows customers access to 25% of their money before the term ends. It's better than getting almost zero interest by leaving savings in a current account."

The bank is raising the interest rate on its 12-month fixed-term deposit by 0.40 percentage points, increasing the rate from 1.75% to 2.14%. Existing account holders will maintain their original rates until their term ends. Customers can access up to 25% of their deposited funds during the term. The SuperSaver account offers 3.00% AER fixed for the first 12 months. Increased competition from online banks is influencing these rate changes, although the new rate does not keep pace with inflation.

Read at Irish Independent