Bank of Ireland and PTSB raise interest rates on products for first time since June ECB hike

Bank of Ireland and PTSB have raised the interest rates on some of their fixed-rate products on Thursday, making them the first mainstream domestic Irish banks to do so since the European Central Bank (ECB) began raising rates in recent months.

Bank of Ireland increased the interest rate on some of its fixed-term savings deposit accounts, while PTSB has raised fixed mortgage rates. The changes are effective from today, the banks said.

They follow recent moves by non-bank lenders, such as Nua Money, the newest mortgage lender to establish itself in the State, as well as ICS Mortgages, recently acquired by Pepper Advantage.

It comes weeks after the European Central Bank (ECB) increased its interest rates by 0.25 per cent in early September. The second time it has done so since June, it is expected by many economists to increase its rates again in December.

Bank of Ireland said it has increased its six and 12-month advantage fixed-term deposit savings rate by 0.25 per cent each and its 18-month offer by 0.5 per cent, the bank announced Wednesday morning.

Customers of any scheme can access “up to 25 per cent of their deposited funds during the term, providing flexibility should they need access to some of their savings”, it added.

“Existing fixed-term deposit customers will continue to earn interest at their existing rate until the end of their current term,” the company said in a statement.

Meanwhile, PTSB has raised its four-year fixed rate mortgage 0.2 per cent – the lowest of all its increases. The bank increased its seven-year fixed rate, three-year higher value mortgage, and three-year green mortgage by 0.25 per cent each, and its five and three-year fixed rate mortgage rates by 0.3 per cent, respectively.

Among PTSB’s largest increases on Thursday were its five-year higher value mortgage, five-year green mortgage and five-year green mortgage of more than €250,000 – all by 0.35 per cent.

Bank of Ireland’s director of everyday banking, Carol Meehan, said: “These increases strengthen the returns available across our fixed-term savings range, while giving customers a choice of 6, 12 and 18-month terms and the option of accessing up to 25% of their money during the term.”