Bank of Ireland will be writing to customers next week to inform them it is changing the terms and conditions on its deposit accounts, paving the way for it to start charging negative rates on high-net-worth individuals’ accounts holding more than €1 million. AIB said on Thursday that the volume of customer deposits that are being charged negative rates has increased from €4.7 billion at the end of 2020 to €10 billion. Banks in the Republic and across Europe have, for some time, been widening the net of customers being charged what are known as negative rates on deposits. This is because the European Central Bank (ECB) has imposed such charges for the past six years on surplus cash banks deposit with it. The ECB deposit rate stands at minus 0.5 per cent.

Source: The Irish Times May 08, 2021 06:00 UTC