CASH ALERT
Major money savings boost for thousands of Bank of Ireland customers amid price war hopes after Revolut shake-up
An expert has warned that the rates may not stick around
BANK of Ireland has announced the introduction of two new deposit rates that will pay up to three per cent to savers.
The major move comes amid hopes of a price war on savings rates being sparked between banks.
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Bank of Ireland confirmed the new interest rates comes less than a week after fast-growing digital bank Revolut, which has over 2.7m users in Ireland, introduced savings accounts with rates of up to 3.49 per cent.
The money app claimed at the time that the major move "shakes up the savings market entirely".
Bank of Ireland will introduce their new two-year fixed-term deposit rate for personal business customers of three per cent APR in just a few days.
There will also be a new one-year fixed-term deposit rate for personal and business customers of 2.5 per cent.
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The announcement comes as the European Central Bank looks set to begin reducing its interest rates from next week - with banks here expected to cut rates.
Bank of Ireland confirmed that the new rates will be available from June 6 and there will be no upward limit on funds that can be deposited or on funds that will attract interest.
The major bank also confirmed that up to 25 per cent of the funds can still be withdrawn during the term.
Bank of Ireland director, retail Ireland, Susan Russell said: “Our new one and two-year fixed-term accounts offer better rates along with flexible features like being able to access some of your cash if needed and easy account opening in-branch or online.
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“There is no requirement to open a current account and no fees or subscriptions to access these rates.”
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Daragh Cassidy, from bonkers.ie, said the new savings account appears to be a "clear response" to the new features launched by N26 and Revolut.
He told how the new Bank of Ireland rates are "competitive" and boasts the "nice feature" of allowing customers to withdraw up to 25 per cent of their money during the term.
He added: "That isn't common in the Irish savings market.
"The fact that there’s no maximum deposit limit will also appeal to the lucky few with very big savings.
"Irish savers are collectively missing out on billions of euro in interest a year by not putting their money into the best yielding savings accounts.
"Instead, they're leaving it in accounts that pay little to no interest. And this apathy is also helping the banks make record profits.
"But with the ECB expected to start cutting interest rates from next week, now really is the time for savers to do something with their money before savings rates start to fall too."
Earlier this week, when Revolut introduced their new Instant Access Savings Account Daragh Cassidy from explained that the feature raised the stakes for Ireland's three main banks.
The money expert said: "With every new product launch, Revolut is becoming an ever bigger threat to the dominance of the three main Irish banks, which is to be welcomed given the recent exits of Ulster Bank and KBC."
Mr Cassidy told how the fresh feature will hopefully encourage more savers to do something with their money - whether it's through Revolut or another savings provider.