Halifax, Bank of Scotland Ireland's retail banking division, has introduced a current account product which will pay interest of 10 per cent on balances up to €2,000.
The No-Catch current account will continue to pay this rate of interest as long as a minimum of €1,500 is paid into the account each month.
An overdraft rate of 9.5 per cent will apply and there are no charges for a range of transactions, including ATM withdrawals, using debit cards, standing orders, direct debits and setting up an overdraft. Halifax claims that the account, which will be available from May 21st next, will save AIB and Bank of Ireland customers who switch to it an average of €132 annually.
Mark Duffy, chief executive of Bank of Scotland Ireland, said that the new product marked the transformation of Halifax into a full-service retail bank. Although he would not reveal how many customers he expected to take up the new account, he was "confident" that it would be a success.
He said that the bank would be able to make money on the new accounts because it had entered the retail banking market at a fraction of the cost of its competitors through its purchase of the ESB's retail shops.
Halifax will aggressively target the 2.4 million customers of AIB and Bank of Ireland in the coming months, according to Mr Duffy, and it is offering an interest-free €1,500 overdraft for three months to new customers.
In a statement, NIB said that its current account products do not require any minimum or maximum lodgments each month.
