AIB and EBS raised the interest rate on several deposit accounts to 2%.
The 2% rate will apply to Regular Online Saver, AIB Junior and Student Saver and EBS Family Saver accounts, reports RTE.
However, this only applies to the first €1,000 per month for 12 months.
After this period, the rate of 0.1% will apply.
Meanwhile, the interest rate on AIB’s 1-year term offer for individual and business customers with a deposit balance of over EUR 15,000 will increase to 1.5%, compared to the previous rate of 1%.
The rate change will take effect from today, reports RTE.
Irish banks have been criticized for the slow pace of interest rate hikes by the ECB since July last year.
At its most recent annual general meeting, AIB was put under scrutiny by shareholders to find out why it had not passed on to its depositors the full benefits of an interest rate hike.
Today’s move could put pressure on other lenders to raise rates for savers.
“We are pleased to make both our Savings and Fixed Term offerings readily accessible via the AIB Mobile App for the first time. Customers can also avail of the new increased saver rates through our AIB and EBS branch network,” AIB Managing Director of Retail Banking Jim O’Keeffe said, reports RTE.
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