Bank of Ireland increase savings rates, still way behind

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podgerodge

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Bank of Ireland have made interest rate increases, but they are pretty pathetic compared to Raisin/Bankinter etc. They must still be confident that most of their deposits are still sticky enough not to worry about the competition.

6 month - 2.01% AER
12 month - 2.40% AER
18 month - 2.48% AER

Bank of Ireland raises interest rate across fixed-term savings range - Bank of Ireland Group Website

22 October 2026 – Bank of Ireland is increasing returns for customers across its range of fixed-term savings accounts, with interest rates on its 6, 12 and 18-month Advantage Fixed Term Deposits increasing by between 0.25% and 0.50% from today. The new rates are set out below: Before rate change…
www.bankofireland.com www.bankofireland.com

Carol Meehan, Director of Everyday Banking at Bank of Ireland, said: “Customers are looking for a combination of certainty, return and flexibility when it comes to their savings. These increases strengthen the returns available across our fixed-term savings range, while giving customers a choice of 6, 12 and 18-month terms and the option of accessing up to 25% of their money during the term.” :D
 
The ECB have increased their Deposit Rate by 0.50% with the market expecting more increases.

Despite that, with this announcement, Bank of Ireland have left their instant access and notice account rates the same and approx 90% of deposits are in these account types.

Meanwhile, their term deposit rates, which are supposed to be forward looking, remain all with poor rates, paying below the current ECB Deposit Rate and don't seem to factor in what is expected to happen. Not sure why anyone would lock at these poor rates.
 
Sometimes its difficult to understand how percentages play out in reality. I've done a quick comparison, showing the returns on a €100k deposit:

1792787159561.webp


I included AIB and PTSB's current offerings as well.

In simple terms, by opting for Raisin, you are 50% better off at the end of the term for the six month offering, and 33% better off at the end of the term for the 12 and 18 month offerings.

BOI has two benefits. First they allow up to 25% to be withdrawn during the term without penalty. Though how useful this is in reality is down to the individual. And the second is that they deduct DERT at source and report same for you.

I await AIB and PTSB's response with bated breath. Or something.....

Small print: BOI, AIB and PTSB's demand deposit rates are now so pathetic it isn't worth wasting time comparing them.

EDIT: Table edited to add Bankinter per post no. 4
 
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Freelance said:
BOI has two benefits. First they allow up to 25% to be withdrawn during the term without penalty. Though how useful this is in reality is down to the individual. And the second is that they deduct DERT at source and report same for you.
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and let's not forget BankInter (I know some have had some teething issues but it worked perfectly for me) with 3.3% fixed 1 year, auto DIRT deduction and 25% access too.
 
Lightning said:
Meanwhile, their term deposit rates, which are supposed to be forward looking, remain all with poor rates, paying below the current ECB Deposit Rate and don't seem to factor in what is expected to happen. Not sure why anyone would lock at these poor rates.
Click to expand...

There is over €100 billion on deposit with Bank of Ireland.
 
Protocol said:
There is over €100 billion on deposit with Bank of Ireland.
Click to expand...
Hi Protocol where is the source for this, in the context of this discussion? as we are talking about ordinary people putting money on deposit to get a decent return. Currently, as we discussed a few months ago, there is €176bn on "household" deposits (at the time it was €170bn but you had €152bn from a different table.) The correct table, from what I gather from the media figures is at Table A.11.1 (Deposits from Irish Private Sector – Sector and Category) . Anyway, right now at €176bn, household, which, from what I gather, isn't really just households - includes other categories not relevant to the discussion at hand, I'm surprised that BOI has €100bn, at least in the context of this discussion, but even under the €176bn. But I'm no expert!

I'd like to get a handle on this as I think we need to get realistic figures here to form viewpoints.
 
A quick look at BOI’s annual accounts (Table 9, if you want to read along at home) suggests that of their €107 billion in customer deposits, about €73 billion is in 'Retail Ireland' — that' strips out (some) corporate, commercial, and UK retail.

The further breakdown is telling: €45 billion sits in current accounts, leaving only €28 billion in so called 'deposits'. From the bank’s perspective, they know they have a massive chunk of money sitting there costing them virtually nothing. Not only that, but:
1) Current account balances actually grew by €3 billion over the year.
2) They charge customers monthly maintenance fees for the privilege.

Compare that with an increase of only €1 billion in 'deposits'.

Of course, if they upped their deposit rates, they might attract even more cash. But why would they want to? A look at their balance sheet (page 34) shows that only about half of their assets are loans, while around a quarter are liquid assets—half of which (from Table 7) are parked at the Central Bank. In short: the bank has no use for extra liquidity and simply puts it on deposit, just like an individual would.

So it wouldn't make sense to chase deposits they don't need. That's even before you get into the argument that AIB and PTSB customers are probably as equally inert as BOI's.

 
The 18 month term seems interesting from our bricks and mortar banks. Sort of suits my situation. I have a 3 year fixed coming due from the PTSB and I don't wish to tie it up for another 3 years. Two years also seems a bit long and one year seems a bit short.

Is the 18 month from the BOI the best offering out there from our homegrown banks?
 
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