Bank of Ireland Announce Interest Rate Increases

Protocol said:
Some movement:

www.independent.ie

Bank of Ireland to increase interest rate paid on savings

Bank of Ireland has become the first bank to react to sustained Government pressure for an increase in deposit rates.
www.independent.ie www.independent.ie
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Why do they make it so complicated?

"SuperSaver deposit product from 2pc to 3pc for the initial 12-month period. After the initial 12 months, a rate of 2pc will apply on balances up to €30,000."

Can a customer refix at the end of the 12 months to get 3pc again?
 
That Super Saver rate

3% for year one, max contribution 2,500 per month. Comes to 492 interest before DIRT after 12 months
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DublinHead54 said:
Why do they make it so complicated?
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skrooge said:
In short a headline grabbing rate but enough restrictions that it won't materially impact banks cost of funding or satisfy any saver to any great extent.
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It's lip service to dampen down any negative
PR on deposit rates.

They simply have no need to pay extra because the Irish depositor for all their bluster won't actually move their deposits.

It's actually more generous than I expected.
 
Thoughts:
- No change to current account rates. This is where about 60% of deposits are.
- Pathetic change to demand deposit rate of 0.10%. This is the next most popular product.
- 1% for notice accounts. Movement in the right direction but still an awful rate.
- 1 of the regular saver products has an increase but it is a new product so customers won't have large balances accumulated yet. BoI can reduce the rate later when average balances accumulate. The product depends on you paying for a current account in most cases and it is a gimmicky product as a whole with a gotcha after 1 year.
- No big change to term deposit rates. Still maxing out at 2%. Less than half of what European banks offer.

i.e.
- Majority of depositors will not benefit from this change.
- Still awful rates for most products.
- Some slight improvements but largely window dressing.

Ball is now with AIB, PTSB and NTMA's court to act next.
 
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Freelance said:
Because it’s actually nothing other than a marketing ploy. These “regular saver” accounts are just a convoluted gimmick to allow the banks to proudly claim they offer 2% or 3%. In reality, these claimed rates can be ignored. The demand deposit and term deposit rates are the key measures.
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I wouldn't say they can be ignored, regular saver accounts do have their place but yeah in this case it is pretty much being done just so they can say they have passed on the rate increases to savers without it actually costing them much. The demand account going to a whopping 0.1% just highlights this. The worst part is it will likely work. The press here won't highlight that BOI demand rates are over 20 times lower than similar offerings in Europe that are probably easier to open than the BOI account any way.
 
Connard said:
I wouldn't say they can be ignored, regular saver accounts do have their place but yeah in this case it is pretty much being done just so they can say they have passed on the rate increases to savers without it actually costing them much. The demand account going to a whopping 0.1% just highlights this. The worst part is it will likely work. The press here won't highlight that BOI demand rates are over 20 times lower than similar offerings in Europe that are probably easier to open than the BOI account any way.
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Speaking of "the Press" I heard BOI's move yesterday been described on RTE Radio as a "hike" hardly a hike a small increase yes and as pointed out above pretty meaningless for those with funds in current and demand accounts. Moral of the story as ever is don't expect your bank to do anything for you unless there is something worthwhile in it for themselves.
 
Small update. I see The Irish Times are reporting that BoI will actually increase the Mortgage Saver rate to 2%. Not clear if the Goal Saver rate is changing too or not - their press release does not directly mention the Goal Saver product.
 
The 31 day notice account even at 1% might be interesting if someone has some funds sitting in their BOI current account while they consider other options. Also BOI is a bank where some people are reasonably happy to have more 100k so that could be another attraction.

Most of the savings accounts can be opened online but the 31 day notice seems to require an appointment and visit to the bank.

"It’s never been easier to apply for a Bank of Ireland Savings Account. You can book an appointment in a Bank of Ireland branch to apply for a Savings Account."

They don't want to make it easy, that 31 day notice would be reasonably popular if it was as easy to setup as the demand deposit which you can do in the app I think.
 
ashambles said:
The 31 day notice account even at 1% might be interesting if someone has some funds sitting in their BOI current account while they consider other options. Also BOI is a bank where some people are reasonably happy to have more 100k so that could be another attraction.

Most of the savings accounts can be opened online but the 31 day notice seems to require an appointment and visit to the bank.

"It’s never been easier to apply for a Bank of Ireland Savings Account. You can book an appointment in a Bank of Ireland branch to apply for a Savings Account."

They don't want to make it easy, that 31 day notice would be reasonably popular if it was as easy to setup as the demand deposit which you can do in the app I think.
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Same as PTSB so.
Somebody mentioned elsewhere that their "high" rate accounts can only be opened in person too.
Ridiculous. :rolleyes:
 
PTSB....
"How to Apply
You can only open this account by attending one of our branches. It cannot be opened online or in-app.
You can make an appointment in any of our branches and submit your application with one of our team."
 
redstar said:
PTSB....
"How to Apply
You can only open this account by attending one of our branches. It cannot be opened online or in-app.
You can make an appointment in any of our branches and submit your application with one of our team."
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AKA 'we are going to try and sell you a load of stuff'. Banks version of a timeshare presentation....
 
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