Average interest rates for savings accounts with an agreed maturity date were at their highest level since the start of 2009 in October, rising to 2.59 per cent. This was still substantially below the euro zone average.
Figures released by the Central Bank on Wednesday also noted that the average interest rate for new mortgages agreed in October was 4.27 per cent, down slightly from September, but still far above the average interest rate of 2.57 per cent in October last year.
The volume of new term deposits in October reached €1.34 billion, a 44 per cent increase on September and an 800 per cent increase on October 2022, although the Central Bank noted that term deposits are still “well below” historic levels seen pre-2021.
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The average rate of 2.59 per cent for fixed term savings accounts in October was lower than the euro zone average of 3.27 per cent.
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The average rate for overnight deposits also rose in October, to 0.12 per cent, the highest level since November 2016.
Daragh Cassidy, head of communications at price comparison website Bonkers.ie, said it is “encouraging” to see fixed deposit rates creep up, but noted that the vast majority of Irish savers have their money resting in lower interest demand deposit accounts.
“Collectively Irish savers are missing out on up to €3.5 billion in interest a year. And this is one of the main reasons Irish banks are so profitable right now,” he said, urging people to ensure they are availing of the best savings account for their money.
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The total volume of new mortgage agreements in October was €843 million, an 18 per cent increase on September, but a decrease of 23 per cent compared to October 2022.
The average mortgage interest rate of 4.27 per cent in the Republic in October was 20 basis points higher than the euro zone average of 4.07 per cent.
Fixed-rate mortgages, which make up 83 per cent of the new home loan market at the moment, had an average rate of 4.23 per cent in October, while variable-rate mortgages had an average interest rate of 4.46 per cent.
Mr Cassidy said that although it seems the European Central Bank has ended its rate hiking cycle, he doesn’t see Irish mortgage rates falling “any time soon”, apart from tracker mortgages.
He urged those with a fixed rate due to expire in the next 12 months to contact a broker to assess their options, adding that “any mortgage holder who’s rolling off a fixed rate soon should be preparing for higher repayments”.
In terms of other consumer loans, new loans totalling €203 million were agreed in October, with an average interest rate of 7.64 per cent.
Loan agreements involving non-financial corporations increased slightly to €1.14 billion in October, but the total was down 14 per cent on October 2022.
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