Bank of Ireland Cuts Demand Deposit Rate to Zero

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Bank of Ireland are cutting their Demand Deposit product rate to 0.00% AER variable from 20 March 2017.

BoI, PTSB, AIB, Ulster Bank all currently pay 0.01% AER variable on their basic demand accounts.

BoI join Rabo (some term deposits), Investec (a notice account) and Ulster Bank (a legacy savings product) by having a rate of zero.

Bar a small number of exceptions, zero has remained the floor for consumer deposit rates in Europe.

Corporate deposit rates are now frequently negative. BoI have a negative rate of -0.10% AER variable on large deposits with one of the corporate deposit demand.

More from Charlie Weston in the Indo here. The press notice with the change is not yet on the BoI website.
 
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Hardly much of a story in this though, its a 0.01% drop after all! Indo making it a big headline of dropping to zero, as if it had dropped from 10% to 0% overnight!
 
The rate drop is obviously negligible. What is interesting is a main Irish bank now has a deposit product that pays no interest whatsoever. It sets precedent.
 
Wait until the rates go negative...my sense is that it's systems issues that are the only real barrier to that.
 
A headline "Bank of Ireland cuts deposit rate by .01%" would be ridiculous.

But it is interesting that some deposit accounts pay no interest at all.

If BoI charged 0.01% for deposits would that be worth a headline?

Brendan
 
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