Business

PTSB raises deposit rates for some personal and business accounts

The seventh such hike by PTSB since November 2022 comes as banks remain under pressure to pass on European Central Bank rate increases

PTSB has said that the interest rate on its six-month fixed term deposit account for personal customers will rise from 1% to 1.75%. Photograph: Alan Betson

Ellen O’Regan
Fri Feb 23 2024 - 15:27

PTSB has announced it is hiking deposit interest rates for certain personal and business deposit accounts as banks remain under pressure to pass on European Central Bank (ECB) rate hikes to customers.

PTSB has said that the interest rate on its six-month fixed term deposit account for personal customers will rise from 1 per cent to 1.75 per cent, making it the highest rate in the market for an account of its kind.

For business customers the bank is also increasing the rate for demand deposits to 1 per cent, and launching a new 32-day notice deposit account with an interest rate of 2 per cent.

The ECB has lifted its deposit rate from minus 0.5 per cent to 4 per cent since July 2022, while its main lending rate has increased at the same pace to now stand at 4.5 per cent.

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PTSB pointed out that the increase to personal deposit rates announced on Friday is the seventh the bank has made since November 2022. “The bank will continue to keep deposit rates under review,” PTSB said, noting that it is now offering rates of up to 3 per cent on certain deposit products.

The new rates announced on Friday will take effect from Tuesday, March 5th, and are available to new and existing customers.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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