Irish deposit rates still the worst in Europe

Irish savers continue to earn the lowest return on their fixed rate deposits across 18 European countries, figures from the European Central Bank show.

The typical rate on a fixed rate household deposit in Ireland was just 0.14 per cent in August, compared with a euro zone average of 0.54 per cent. The Irish rate has fallen from 0.18 per cent in March.

Savers in the Netherlands are enjoying an average return of 1.8 per cent, or an annual return of €180 on a deposit of €10,000, compared with just €14 in Ireland.

Over 12 months the best rate on the Irish market is KBC Bank’s 1.15 per cent but this is restricted to the bank’s current account customers. Otherwise the best rate is the bank’s 0.9 per cent rate.

Worst of the bunch are AIB and Bank of Ireland, which both have rates of 0.25 per cent on offer.

Cypriot savers are enjoying better than average returns of 1.55 per cent, followed by Slovakia (1.33%); Italy (1.13%); and Malta (1.11%).

Joining Ireland at the bottom of the heap are Spain (0.17%); Lithuania (0.24%); and Luxembourg (0.29 per cent).