Radio

AIB and EBS increase their rates for savers - Drivetime

Tue 13th Jun 2023

Returns on savings accounts have been incredibly low in Ireland for many years. However, with interest rates rising for mortgage and other loan holders, calls for better savings returns have grown louder.

In response, AIB and EBS have decided to increase their interest rates on selected savings products.

Daragh Cassidy, Head of Communications at bonkers.ie, appeared on RTÉ’s Drivetime, to discuss the announcement, and the options out there for savers.

Listen to the interview above or look at the main points discussed below.

Main points from the interview:

AIB is doubling the rate on some of its savings accounts to 2%. Rates at AIB’s subsidiary, EBS, are also going up.
AIB is increasing the rate on its Regular Online Saver account from 1% to 2%. However this only applies to the first €1,000 per month for 12 months. A rate of just 0.10% applies after this.
AIB is also upping the rate on its Junior and Student Saver accounts from 1% to 2%. However this only applies to the first €1,000 in total. If you build up savings of more than €1,000, a rate of just 0.10% will apply to the balance.
The bank is also hiking the rate on its one-year fixed-term deposit account from 0.50% to 1.50% for personal and business customers. However you must have a balance of at least €15,000 to avail of this rate.
EBS is hiking the rate on its Family Saver account from 1% to 2%. This applies to savings between €100 and €1,000 per month for the first year - a rate of 0.10% applies after this.
EBS is also upping the rate on its Children's and Teen Savings Account from 1% to 1.50%, but this rate only applies on balances of up to €5,000.
However, these rates are nothing compared to offerings in Europe, where rates are over 3.5% in some cases.
Trade Republic which is an online investment platform recently opened in Ireland and offers 2% on amounts up to £50,000, for example.
People don’t tend to shop around for savings products, even though they are very easy to set up. Oftentimes you can open them simply within an app.
If you are looking to open up a savings account, you should shop around as your main bank may not be offering the best rates.
Raisin Bank, which is a marketplace for European savings accounts, is another option. It allows you to save in accounts around Europe. The best on offer at the moment is 3.6% in a Portuguese bank.
Raisin is regulated in the same way as any other bank, so you don’t need to worry about the safety and security of your deposits.
Remember, when using Raisin to declare any earned interest, as this will be liable to DIRT.
State Savings remains a good option, as you don’t have to worry about paying DIRT on any returns, meaning even though they offer lower rates than some banks, it can work out the same after tax.
Another good option, instead of just having your deposits sitting, earning very little, is to invest in your pension or a home retrofit.

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