Corresponding NFC term deposit rates for the euro area stood at -0.30 per cent. Interest rates on new NFC term deposits in Ireland stood at -0.42 per cent in July. The equivalent euro area rate was 0.23 per cent. Irish banks have lagged many European peers in raising mortgage rates since the ECB started hiking rates last summer, as they are more reliant on cheap household deposits to fund loans.Īlmost 95 per cent of Irish household deposits are sitting in on-demand accounts, which are earning little or nothing by way of interest. Key Developments in Deposits Chart 5: Interest rates on new household term deposits stood at 0.10 per cent in July.
Minister for Finance Michael McGrath said last week he expected to see rate rises for depositors in the next few weeks, while the Oireachtas finance committee is preparing to grill the banks next month over their interest rate policies. Term Deposits Fixed Rates Name 365 Fixed Term 365 12 Month Fixed Term Term 12 Months Min 145,000 Max 141,000,000 Fixed Term Return (based on fixed interest paid at maturity) 0.04 Fixed AER Fixed 0. The European Central Bank has increased the deposit facility rate paid to banks on surplus deposits lodged with the Central Bank from minus 0.5 to 3.75 per cent since July of last year. The highest rate on offer there will also be 3 per cent – for customers with regular savings accounts where money is lodged on a monthly basis. Bank of Ireland was the first of the banks to raise deposit rates earlier this week.
