AIB and EBS have increased their interest rates on a number of deposit accounts to 2%.
The 2% rate will apply to its regular online saver, its AIB Junior and Student saver and the EBS Family saver accounts.
But it will only apply to the first €1,000 per month for 12 months.
After this period, a rate of 0.1% will apply.
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.
The rate changes come into effect from today.
Irish banks have been criticised for the slow pace at which they are passing on the interest rate increases that the ECB has introduced since last July.
At its recent annual general meeting, AIB came under questioning from shareholders about why it had not passed on the full benefit of the rate increases to its depositors.
Today’s move is likely to put pressure on Bank of Ireland and Permanent TSB to raise their rates for savers.
Read the full report on www.rte.ie
