Permanent TSB focuses on deposits

Permanent TSB is to offer customers a new fixed-term deposit account that pays the interest at the beginning of the term.

The 12-month fixed "Interest First" savings account pays the interest within a month of opening the account. It has a minimum deposit of €10,000 and will pay out interest at 3.35 per cent gross or 3.46 per cent AER.

Permanent TSB expects customers to invest up to €1 billion in the product over the next year, costing it a total of €33.5 million before DIRT in interest.

Permanent TSB's head of business strategy Niall O'Grady said the bank was seeking to bring innovation to the market.

"Retail deposits is the priority growth area for us at the moment," he said. "We can't be coming to customers with the same standard product all the time."

Permanent TSB's research had revealed that the average deposit customers held was €60,000.