2-3 ECB Rate Increases Expected by Year End
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Irish Independent Business section is leading with this article on savings rate changes.
Banks have complex rules and many gimmicks and in many cases such an array of products it can mislead customers and journalists.
The Irish Independent says "The Bunq Free instant access account offers a rate of 3.01pc, but only for new customers.".
- In fact - The 3.01% rate applies to both new and existing customers with the complex rule that it applies to amounts over the highest balance in the prior half year.
But my main gripe is that the article doesn’t highlight the fact that the banks have not passed on the ECB rate on ther vast majority of their products.
It is technically speaking correct to say that "PTSB, Raisin, Bankinter, Bank of Ireland and now Bunq, are some of the providers that have adjusted some of their rates upwards.” But the article should highlight that they have actually increased very few rates. Readers might get the impression that the banks generally are passing on ECB rate increases – they are not.
- PTSB have failed to pass on the ECB rate increase for all of their savings products. (They launched 1 new product at a poor rate).
- BoI have failed to pass on the ECB rate increase for the vast majority of their savings products. (Just 1 exception).
- BankInter have not adjusted their 12 month rate and only slightly adjusted their 6 month rate and only for a limited period of time.
- Bunq have failed to pass on the ECB rate increase for their business customers, their standard rate customers, their term deposit rates but exceeded the pass on with their promo rate.
- Raisin partner bank instant access and notice rates have, at best, partially, in some cases, passed on the ECB increase but in all cases have failed to fully pass it on.
Not to mention the fact that AIB, EBS and State Savings have done nothing to pass on the ECB increase.
A tiny minority, of savvy people in the right products, have benefited from the ECB rate increase. The vast majority have not.
The CBI stats for May 2026 showed that Irish banks are on average paying 0.14% for instant access deposits, up a nudge from 0.13% at the start of this year. Given that there were no adjustments to Irish bank instant access rates in June 2026, 0.14% probably remains as the average payment. A far cry from the ECB Deposit Rate of 2.25%.
Banks have complex rules and many gimmicks and in many cases such an array of products it can mislead customers and journalists.
The Irish Independent says "The Bunq Free instant access account offers a rate of 3.01pc, but only for new customers.".
- In fact - The 3.01% rate applies to both new and existing customers with the complex rule that it applies to amounts over the highest balance in the prior half year.
But my main gripe is that the article doesn’t highlight the fact that the banks have not passed on the ECB rate on ther vast majority of their products.
It is technically speaking correct to say that "PTSB, Raisin, Bankinter, Bank of Ireland and now Bunq, are some of the providers that have adjusted some of their rates upwards.” But the article should highlight that they have actually increased very few rates. Readers might get the impression that the banks generally are passing on ECB rate increases – they are not.
- PTSB have failed to pass on the ECB rate increase for all of their savings products. (They launched 1 new product at a poor rate).
- BoI have failed to pass on the ECB rate increase for the vast majority of their savings products. (Just 1 exception).
- BankInter have not adjusted their 12 month rate and only slightly adjusted their 6 month rate and only for a limited period of time.
- Bunq have failed to pass on the ECB rate increase for their business customers, their standard rate customers, their term deposit rates but exceeded the pass on with their promo rate.
- Raisin partner bank instant access and notice rates have, at best, partially, in some cases, passed on the ECB increase but in all cases have failed to fully pass it on.
Not to mention the fact that AIB, EBS and State Savings have done nothing to pass on the ECB increase.
A tiny minority, of savvy people in the right products, have benefited from the ECB rate increase. The vast majority have not.
The CBI stats for May 2026 showed that Irish banks are on average paying 0.14% for instant access deposits, up a nudge from 0.13% at the start of this year. Given that there were no adjustments to Irish bank instant access rates in June 2026, 0.14% probably remains as the average payment. A far cry from the ECB Deposit Rate of 2.25%.
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Yes, Irish banks and CU are flooded with deposits that are not sensitive to interest rates.
There are thousands of people like my retired father, a simple man who doesn't spend much, with reasonably strong pensions, relative to their lifestyles, who can't help but accumulate deposits every month.
These people, and there are lots of them, will not move deposits to Bunq, Raisin, Revolut, etc.
Unless something radical happens, the three Irish pillar banks have a pool of deposit liabilities that is sticky, and for which they don't need to compete, therefore the bulk of deposits will be earning well below ECB rates for the foreseeable future.
There are thousands of people like my retired father, a simple man who doesn't spend much, with reasonably strong pensions, relative to their lifestyles, who can't help but accumulate deposits every month.
These people, and there are lots of them, will not move deposits to Bunq, Raisin, Revolut, etc.
Unless something radical happens, the three Irish pillar banks have a pool of deposit liabilities that is sticky, and for which they don't need to compete, therefore the bulk of deposits will be earning well below ECB rates for the foreseeable future.
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I think the issue is that even those competing for those who are looking to move money have so many games you need to play. It’s not just a case of oh x bank offer 1% more and word eventually gets around. You need to be willing to keep track of sometimes complex rules regarding balance and offer length.
Most people have enough to be doing and keeping on top of and I suppose are right to be wary of a bank they never heard of.
Most people have enough to be doing and keeping on top of and I suppose are right to be wary of a bank they never heard of.
People are lazy. I'm getting well in excess of that
I'm not lazy but no online bank so far has accepted my new passport due to the faded photo that it contains. I've tried several and every time the online id verification check has failed. I'm not sure what to do. Should I ask the passport office for a replacement?
Yes. Don't be lazy
Yeah, but the merits of holding deposits (deposits have a role in any portfolio) or not are a side conversation to whether ECB Deposit Rate change transmissions to the banks are working or not.
Absolutely
And if the fading is their fault surely they should replace it for free.
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People are lazy. I'm getting well in excess of that
Can i ask Fortune where your getting well excess as i have circa 40k in demand deposit atm
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Can you use Driving licence as ID? Pretty sure I used it for Monzo without a problem.
Yes, but clearly tens of thousands of people do, as there is €153-170 billion on deposit.
Crudely dividing by 2m households means €80,000 per household on deposit.
That is very skewed, as loads of people have below €5,000 on deposit, and plenty of older people have €100,000+ on deposit.
One should always be looking for the best return on their emergency fund.
All online financial service providers that I've tried only take a passport for Irish citizens.
Yes, and so and a bigger issue than a percent this way or that in deposit returns is addressing this issue of underused capital very likely losing value due to inflation.
Irish angst
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The main banks, credit unions and state savings are often the more trusted investment institutions still by older people ( regardless of the crash) So they should be encouraged to raise their very poor rates. Even the prize bonds are less advantageous than they were as even less prizes are awarded now. They must all have very healthy balances and no excuses not to increase their interest rates.
They simply have no need to do so. They have experienced generations of savers' inertia
Plus they have too much cash on deposit as it is?