Saturday March 26 2011
BANK of Ireland has launched a two-year deposit account paying 6pc interest, as banks continue to outdo each other in the battle to attract savings.
This is the highest fixed-term interest rate in the market regardless of term, savings expert Simon Moynihan of Bonkers.ie said. If the money is left on deposit for one year, the bank will pay 3pc.
But if the money is left in the bank for two years, the rate paid is 6pc, which works out at an annualised equivalent rate (AER) of 4.5pc, Mr Moynihan said. The minimum lodgment to the account is €20,000. Bank of Ireland says it has more than one million savers.
The next best term account rate on offer in the market is 4.4pc for 10 years from RaboDirect. Earlier this month, EBS launched a new 10-month term account paying 3.71pc.
British building society Nationwide UK (Ireland) has just launched a 12-month savings account paying 3.65pc.
The Nationwide UK account has a minimum balance of €3,000, while EBS's minimum deposit is €20,000.
Permanent TSB's Interest First account pays 3.62pc for amounts over €10,000.