Bank of Ireland introducing new deposit products/ ptsb raises rates

Brendan Burgess

Brendan Burgess

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Bank of Ireland launches new savings account with 1.5% interest rate​



  • SuperSaver deposit account offers 1.5% rate for first 12 months and €100 off home or car insurance
  • Range of other deposit enhancements also announced including rate increase to 1% on regular saver products (MortgageSaver, GoalSaver, Childsave)
  • New 1-year Advantage Fixed Term Deposit Account also introduced offering 0.75% rate with no upward cap on savings


Wednesday 17th May – Bank of Ireland has today unveiled a range of measures to reward savers. This includes the introduction of a new savings account – SuperSaver – with a 1.5% rate for the first 12 months and a €100 discount on home or car insurance. The Bank has also announced a 0.25% increase to its 1-year term deposit rates and removed the cap for new 1-year term deposits.



Susan Russell, Director, Retail Ireland, said: “I’m pleased to announce this enhancement to Bank of Ireland’s deposit offering which we see as an important component of our overall focus on customer financial wellbeing. With a 1.5% rate, combined with a €100 discount on home or car insurance, we’re doing more to reward regular savers. We also want to encourage those who don’t save to start that habit, even with a small amount each month.”



New SuperSaver account offering 1.5% for first 12 months and €100 insurance discount

The new SuperSaver account will offer a special rate of 1.5% for the first 12 months, capped at €30k, after which it will default to the standard Regular Saver rate. As a further incentive, customers will receive a discount of €100 on home or car insurance. To encourage younger savers there will be no minimum monthly lodgement required. SuperSaver will be available in June 2023.



Regular Saver personal deposit account rates increase by 0.25%

Following a 0.25% increase in January, the Bank is increasing rates by a further 0.25%, allowing customers to earn 1% on its MortgageSaver, GoalSaver, and Childsave accounts, capped at up to €15k. The new rate is effective from 19 May 2023.


New 1-year Advantage Fixed Term Deposit Account offering 0.75% and no maximum limit

The Bank is also introducing two new 1-year Advantage Fixed Term Deposit Accounts, one for personal and one for business customers. Each will offer a 0.75%, rate, which is an increase of 0.25% on current 1-year fixed term deposit rates.



In addition, the new 1-year Advantage Fixed Term Deposit accounts are not subject to a maximum limit whereas the current 1-year term deposits are capped at €100k for personal customers and €250k for business customers. The new Advantage Fixed Term Deposit accounts are available from 19 May 2023.



Ends/



Note to Editors:



The European Central Bank (ECB) has increased the Euro refinance rate by a cumulative 3.75% since July 2022.



Mortgages



To date, Bank of Ireland has:

  • Increased fixed-rates for new mortgage customers by 1.50%;
  • Increased fixed-rates for existing mortgage customers by 1.00%;
  • Made no changes to variable rates;
  • Increased tracker rates in line with ECB rates.


The composition of the Bank of Ireland mortgage book in Ireland is:

  • 68% fixed rate;
  • 21% tracker rate;
  • 10% variable rate.


Deposits



To date, Bank of Ireland has:

  • Ended the application of negative interest rates to customer accounts (August 2022);
  • Increased the rate on Regular Savings accounts to 0.75% (January 2023);
  • Launched a new 1-year term deposit account for personal customers at 0.50% (January 2023) capped at €100k;
  • Announced a new 1-year term deposit account for business customers at 0.50% (March 2023) capped at €250k;


The changes announced today will see the rate on Regular Savings accounts rising to 1%. There will also be new 1-year term deposit accounts with a rate of 0.75% and no maximum limit.
 
Thanks Brendan.

Pity we have to wait until June to see the details on the SuperSaver product.

I have updated the regular saver best buys.

I will update the term deposit best buys once the full detail is on the BoI website.

BoI have failed to pass on the vast majority of the ECB rate increases to their customers and profited significantly as a result. Todays announcement is a small step in the right direction but BoI still has poor deposit rates compared to what is available.

Will be interesting to see how/if AIB and PTSB respond (they are the only bank now paying under 1% for a regular saver). AIB have said that they are "looking into" deposit rates.
 
Lightning said:
Thanks Brendan.

Pity we have to wait until June to see the details on the SuperSaver product.

I have updated the regular saver best buys.

I will update the term deposit best buys once the full detail is on the BoI website.

BoI have failed to pass on the vast majority of the ECB rate increases to their customers and profited significantly as a result. Todays announcement is a small step in the right direction but BoI still has poor deposit rates compared to what is available.

Will be interesting to see how/if AIB and PTSB respond (they are the only bank now paying under 1% for a regular saver). AIB have said that they are "looking into" deposit rates.
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Irish banks are disgusting. Anyone who still has money sitting in them is bonkers.
 
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Thanks Brendan.

The Irish Times article is slightly misleading at the start, it implies that PTSB are adding 0.25% to all deposit rates but the reality is that it will be selected products.

I have updated the regular saver best buys. First time ever that PTSB, EBS, AIB and BOI have the same regular saver rates. PTSB have the best of these because they have the highest cap (50k) but some distance.

I will update the term deposit best buys when PTSB launch the new rates in June and put the full detail on their website.
 
The Bank of Ireland Supersaver product paying 1.50%:
- Is capped at 30k.
- Only applies for the first year.
- Rate is variable.
- Seems to be a regular saver product.
 
Definitely looks like window-dressing to me. Giving the impression that they are raising deposit rates across the board whereas the reality is full of ifs-and-buts, caps (which are not very high amounts) and favouring regular savings rather than term lump sums - the actual amount of interest paid out due to these caveats will still be quite small compared to the interest earned by the banks from mortgages.
 
redstar said:
Definitely looks like window-dressing to me. Giving the impression that they are raising deposit rates across the board whereas the reality is full of ifs-and-buts, caps (which are not very high amounts) and favouring regular savings rather than term lump sums - the actual amount of interest paid out due to these caveats will still be quite small compared to the interest earned by the banks from mortgages.
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Window dressing is right.

ECB have increased their deposit rate by 3.75%. But ...

BoI and PTSB and AIB continue to pay zero on current account deposits which make up about 50% of where deposits are held.

BoI and PTSB and AIB continue to pay zero or very close to zero on lump sum deposits and notice accounts which is where the next largest amount of deposits are held.

There have been some small modest increases in term deposit rates but only about 1% of deposits are held in term deposit accounts based on CBI stats.

There have been some small modest increases in regular saver rates but nothing like what the ECB has increased rates by and the products contain heavy conditions (esp with AIB and BOI) and complexity (AIB - I bet the average depositor fails to understand the annual 12k cycle where the rate drops back to 1k after a year) that are designed to ensure that not everyone gets the headline rate.

Nutshell is the vast majority of Irish depositors are being screwed but the banks are releasing press releases that they have increased rates which is not presenting an honest reflection of the situation because it is highly selective in terms of products and highly selective in terms of when they choose to pass on increases.
 
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Agree. If the above named banks were interested in giving to existing savers they would just up rates on all accounts. Instead they are creating new and complex products for customers to take up. They are well aware of customer inertia in terms of moving, knowing many will do nothing to avail of higher returns.
 
Irish banks now effectively form an oligopoly and they should be regulated like one, with imposed ceilings on what they can charge for loans and mortgages and floors on interest they pay on deposits.
 
jim said:
And this is why i dislike irish banks. Not only is their customer service poor but their products are too.
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Very true. I wish a few European banks had come here and given some proper competition but instead the only non-Irish banks just left.
 
Still no launch for the BoI Super Saver that was announced in May. BoI said it would go-live in June.

I wonder if BoI is considering a 2.00% rate given the AIB rate change.
 
I wonder, though I suspect that most Irish people aren't depositing with the likes of Bunq, Raisin and Advanzia, if people en masse started to deposit in other EU banks, how quickly the Irish banks would have to react/panic.
 
RiskAverseGuy said:
RTE news : Bank of Ireland increases one year term deposit rates

www.rte.ie

Bank of Ireland increases one year term deposit rates

Bank of Ireland said it is increasing its one year term deposit account rates by a further 0.5% from today.
www.rte.ie www.rte.ie

Finally some movement in term deposits from BOI
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1.25% for a term deposit is still less than half what best buys (Raisin) pay and is an awful return given current ECB rates.

The Super Saver product requires one to open a current account. 1.5% rate only applies for first year. The year two rate is unpublished.

I don't know why most people would bother with the BoI Super Saver product when you can get up to 3.25% elsewhere without any regular saver rules hassle.
 
podgerodge said:
I wonder, though I suspect that most Irish people aren't depositing with the likes of Bunq, Raisin and Advanzia, if people en masse started to deposit in other EU banks, how quickly the Irish banks would have to react/panic.
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The vast majority of people are not depositing money with European banks sadly. Deposits at Irish banks have actually grown by a lot.

Irish banks would have to react if outflows started due to their poor rates. But there is no indication that an exodus of depositors is about to happen.
 
People would presumably prefer a bricks and mortar bank rather than sending it to a bank they have never heard of. Hence the Irish banks are in no hurry to increase rates.
 
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