Bank of Ireland is reducing the interest rate on its 12 and 18-month fixed-term deposits by 0.25 per cent.
It will take the interest earned for the bank’s advantage 12 month fixed term account to 1.74 per cent (annual equivalent rate of 1.75 per cent), while the interest on the advantage 18 month fixed term account will be 3.36 per cent (annual equivalent rate of 2.24 per cent).
The changes will take effect on Thursday, but customers who are in the process of opening new 12- or 18-month fixed-term deposit accounts can still avail of the current rates if they open their account by the close of business on Wednesday.
There are no changes to the bank’s other savings accounts, including SuperSaver, which is its most popular choice for new regular savings, and which continues to offer a 3 per cent annualised rate for 12 months.
Existing fixed-term deposit account customers will continue to earn interest at their original rate until the end of their term.
Up to 25 per cent of funds can be accessed during the term of an advantage fixed-term deposit account.
Bank of Ireland pointed out the European Central Bank has lowered interest rates by a cumulative 1.75 per cent in recent months.
Bank of Ireland has, over the same period, reduced its 12 and 18-month term deposit rates by a total of 0.75 per cent, including the changes announced on Tuesday.
