Permanent TSB is increasing the interest rate on deposits by between a quarter and a half per cent across all its fixed term accounts, the fourth time the lender has raised rates since November last.
It mean rates of up to 2 per cent will now available on some accounts, for example, the bank’s three and five-year fixed term accounts.
The lender said on Thursday evening that its latest hike will come into effect from August 9th.
Darragh Cassidy, head of communications at price comparison website Bonkers.ie, said the decision is good news for savers but that the returns will be minimal.
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“While it’s great to see savings rates begin to creep up, the returns on offer are still well below the rate of inflation,” he said. “And of course you’ll pay DIRT (Deposit interest retention tax) of 33 per cent on any gains you make. Also, deposit rates of over 3.50 per cent are now available in many countries throughout Europe. So the new rates from PTSB still pale in comparison.”
PTSB’s latest move is a response to the current cycle of European Central Bank (ECB) interest rate hikes, which saw Frankfurt raise its main refinancing rate to a 22-year high of 3.5 per cent last month. Another increase is expected after ECB policymakers meet next week.
