Bank of Ireland has launched a two-year term deposit product with a 2 per cent annual rate for personal business customers, as banks come under increasing pressure to pass on some of the recent central bank rate increases to savers.
The moves come ahead of the bank’s interim results next week, when the bank is expected to face questioning from analysts and media organisations on deposit and mortgage pricing.
Bank of Ireland has also moved to increase rates on new fixed-rate home loans by 0.25 of a percentage point, bringing cumulative increases since last late year to 1.75 points.
The latest mortgage increases will, for example, see the bank’s five-year rate for loans of less than 80 per cent of the value of a home rise to 4.25 per cent.
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The new rates will also apply to existing customers who are coming to the end of their fixed-rate period and are seeking to re-fix their mortgage, and tracker rate or variable rate customers who wish to move to a fixed rate.
The European Central Bank (ECB) has increased its main lending rate from zero to 4 per cent in the past 12 months and is expected by analysts to add another 0.25 of a point to official rates when its governing council meets on Thursday.
“Mortgage applicants who already have a credit approval and who draw down their mortgage by 24 August 2023, can still avail of the previous fixed rates,” the bank said.
Bank of Ireland has increased the rate on its one-year term product by quarter of a point to 1.5 per cent and move the 12-month introductory rate on a so-called SmartSaver product launched in may by half a point to 2 per cent.
