Permanent TSB to increase deposit interest rate

Permanent TSB is to increase the interest rate it pays to customers using its deposit accounts, adding a quarter of a per cent to the current rates from June.

This will bring to 1 per cent the rate paid on demand, notice and children’s deposit accounts. The bank’s fixed term deposit rates will also increase by 0.25 per cent for terms covering six, 12 and 18 months.

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The increase will come into effect from June 20th.

The rate rise follows the European Central Bank’s decision to raise interest rates again earlier this month, in a bid to combat inflation. The main refinancing rate now stands at 3.75 per cent, while the ECB’s deposit interest rate is 3.25 per cent.