Digital banks N26 and Revolut up the pressure in marketA savings interest rates war has broken out after a move that reverses fears that deposit rates were about to fall. Bank of Ireland surprised the market by introducing two new deposit accounts paying up to 3pc. It comes as new figures show Irish consumers are starting to shift their savings out of demand deposit and overnight accounts that pay little or nothing in interest into higher-yielding term deposit accounts. Households have been consistently putting money into term deposits for the past 14 months. The savings rates war comes at a time when banks here were expected to cut rates, as the European Central Bank is due to start reducing its interest rates from next week.

Source: Irish Independent May 30, 2024 07:01 UTC