Bank of Ireland has announced reductions in two of its savings rates, a move that could trigger further cuts from competitors.
The decision follows the European Central Bank’s (ECB) recent series of rate cuts, with more reductions anticipated this year. Last month marked the fourth time the ECB decreased its key rates, impacting banks across the eurozone.
The changes, set to take effect from Thursday, will see the interest rate on the Bank of Ireland’s 12 and 18-month fixed-term deposit accounts drop by 0.25 percentage points.
The Advantage 12-month fixed-term deposit account’s return will fall from 2.5 per cent to 2.25 per cent annual equivalent rate (AER). Similarly, the Advantage 18-month fixed-rate deposit product will see its rate decline from 2.98 per cent AER to 2.73 per cent.
These changes come as a blow to savers seeking competitive returns on fixed-term products.
For customers already in the process of opening these accounts, there’s a window of opportunity to secure the current higher rates. The bank confirmed that savers who finalise their accounts by Wednesday, January 8, will still be eligible for the existing rates.
Meanwhile, the interest rate for the Advantage 6-month fixed-term deposit account will remain unchanged.