Permanent TSB to increase deposit account rates

The rise comes after the European Central Bank increased its main deposit and refinancing rates seven times since the summer, placing pressure on banks to raise rates for those with savings.

While banks have not fully passed on the increase in deposit rates, they have also refrained from imposing the full impact of interest rate increases on mortgage borrowers.

PTSB reported that this is the third increase in savings and deposit products that the bank has introduced since November of last year.

This latest rise will come into effect from June 20.

For demand deposit accounts, the rate paid on the bank’s online regular saver account for amounts up to €50,000 will rise by 0.25pc to 1pc.

The rate paid on the 21-day regular saver account for amounts up to €50,000 will also increase by the same amount, while the rate paid on children’s savings accounts for amounts up to €20,000 will also grow by 0.99pc to 1pc.

For fixed term deposit accounts, rates are set to rise by 0.25pc on deposits for terms of 6, 12 and 18 months.

Bank of Ireland also announced an increase on a range of its savings rates yesterday following a similar move in January.

It is now set to introduce a new ‘SuperSaver’ deposit account from June, which pays a 1.5pc rate for the first year.