Savers get boost after PTSB launches new account and allows more funds to be put into regular saver account

PTSB introduced a new 32 Day Notice Account with a variable interest rate of 1.25% on the full balance. The account can be opened online or in branches with no minimum balance and no maximum balance limit. Withdrawals are allowed at any time, but 32 days’ notice is required to avoid early withdrawal fees. PTSB also removed its existing 40 Day Notice Accounts. In addition, PTSB enhanced its Regular Saver by increasing the maximum monthly lodgement to €2,500 and raising the higher-rate balance threshold to €75,000. The changes follow Bank of Ireland’s increase to a 12-month fixed-term deposit rate and reflect competitive pressure from neobanks and Raisin, alongside expectations of higher ECB rates.

"PTSB has introduced a 32 Day Notice Account with a variable rate of 1.25pc on the full balance. Available to open online and in branches, the new 32 Day Notice Account product offers a variable interest rate of 1.25pc on the full balance held in the account. There is no minimum balance, meaning the account can be opened with any amount. And there is no maximum balance limit. Withdrawals can be made at any time, but 32 days' notice is required to avoid an early withdrawal fee."

"At the same time the bank has removed its existing 40 Day Notice Accounts. Existing customer arrangements will continue in line with applicable terms and conditions, PTSB said. The bank has also announced enhancements to its Regular Saver. The changes include increases to the thresholds applied to these savings accounts at the variable interest rate of 2pc. The maximum monthly lodge"

"Both the Bank of Ireland and PTSB are said to be responding to the increasing competitive pressure from neobanks, and savings platform Raisin which allows people to access savings accounts across Europe. The European Central Bank is expected to hike the interest rates it charges banks next month, in a move that will likely lead to calls for higher savings rates here. Households have around €170bn in current and savings accounts in banks."

"Bank of Ireland raised the interest rate on its 12-month fixed-term deposit by 0.40 percentage points. This means the rate has gone from 1.75pc (annual equivalent rate) to 2.14pc. The moves come a month after Bank of Ireland hiked one of its savings rates last month."

Read at Irish Independent