AIB and its subsidiary EBS have increased interest rates for deposit holders, doubling the return for regular savers.
The bank said the 2% rate will apply to its regular online saver, its AIB Junior and Student saver, and the EBS Family saver accounts.
However, it will only be valid for the first €1,000 every month for a whole year.After then, a rate of 0.1% will be in effect.
Meanwhile, the rate on AIB’s one year fixed term offering for personal and business customers with deposit balances over €15,000 will increase to 1.5%, an increase of 1% on the previous rate.
This week, the modifications take effect. Irish savers will now get 2% interest for the first time in almost ten years.
The decision is probably going to put pressure on the other Irish banks to do the same.
“AIB is delighted to announce significant increases on the returns we are offering to both AIB and EBS savers, including an Irish bank market leading 2 per cent for regular savers,” said AIB managing director of retail banking Jim O’Keeffe.
“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. We will continue to keep our deposit rates and product offering under review.”