In response to increasing competition in the savings space, Bank of Ireland is upping the rate on two of its fixed-term deposit accounts.
Over the past few weeks there have been lots of positive developments in the savings sector.
First, N26, the German online-only bank launched an instant-access savings account offering Irish customers up to 4% interest. Then Revolut, which now has over 2.7 million users in Ireland, launched its own savings account offering up to 3.49% interest. And PTSB also increased the rate on some of its shorter-term deposit accounts.
Now, in somewhat of a surprise move, Bank of Ireland has increased the rate on two of its main fixed-rate deposit products.
Get up to 3% interest
Bank of Ireland has increased the rate on its two-year fixed-term Advantage account to 3% (giving a pre-tax return of 5.98% over the full two years). This is up from 2% at present.
It’s also increased the rate on its one-year account to 2.50%.
The new rates will be available from 6th June.
A minimum deposit of €5,000 is required. There’s no maximum limit to the amount you can deposit and all funds up to €100,000 are covered by the Central Bank of Ireland Deposit Guarantee Scheme. However you can only make one single lodgement. After the initial lodgement you cannot make further deposits to the account.
You don’t need to be an existing customer of Bank of Ireland to open a deposit account or even have a current account with the bank.
And in a clear dig at some of its rivals like N26 and Revolut, Bank of Ireland points out that no fees or subscriptions are required to access these rates. While Revolut offers a rate of up to 3.49% as outlined above, for example, this is only available to those with an Ultra account, which costs €55 a month! Its standard, free account only offers 2% interest.
| Product name | New rate | Previous rate | Change |
| Advantage 6-month fixed-term deposit account | 1.50% | 1.50% | n/a |
| Advantage 1-year fixed-term deposit account | 2.50% | 2.00% | +0.50% |
| Advantage 2-year fixed-term deposit account | 3.00% | 2.00% | +1.00% |
Flexibility with your money
Some savers are hesitant to lock their money away for long periods of time, preferring to keep their money in demand deposit or 'easy-access' accounts, even if it means they’ll miss out on higher rates of interest.
However, Bank of Ireland fixed deposit accounts allow customers to access up to 25% of their funds during the term without any penalty, meaning you get to avail of some of the best rates of interest in the market right now while also retaining an element of flexibility with your money.
How do I open an account?
Accounts can be opened online, via the Bank of Ireland mobile app, or in person at any Bank of Ireland branch nationwide.
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. There is no requirement to open a current account and no fees or subscriptions to access these rates. And, like all our products, they’re backed by our customer service offering including a nationwide branch network and our contact centres.
Susan Russell, Director of Retail, Bank of Ireland
A surprise move
Next week the European Central Bank is likely to start cutting interest rates. And in advance of the move, many mortgage lenders have begun lowering some of their rates. And it was expected that this would also lead to lower savings rates.
However Bank of Ireland is clearly responding to increased competition in the savings space from the likes of N26 and Revolut, and in recent times Raisin.
So for now at least, we seem to have the best of both worlds: mortgage rates creeping down and savings rates creeping up. But it's unlikely to last very long.
Review all your options
Bank of Ireland isn’t the only provider offering good rates of interest right now. So it’s important to review all the options that are available out there.
You can easily find the best return for your money on bonkers.ie.
Use our savings comparison tool to compare rates from the likes of AIB, Bank of Ireland, PTSB, Trade Republic, Raisin, Bunq, N26 and more in just minutes.
