Irish banks set to make up to €1 billion from ECB rate increases

It’s thought Irish banks could make up to €1 billion from rate increases from the European Central Bank.

Irish banks can benefit from deposit interest rates of 1.5% from the ECB, but are only giving Irish savers an average return of less than 0.5%.

A study carried out by the Irish Independent shows rates on deposit accounts here are four times lower than the EU average.

Personal Finance Editor with the newspaper, Charlie Weston, says the banks should be giving back more on their savings accounts:

“You know, before the summer they were actually getting negative interest rates so that we’re being charged for putting money into the European Central Bank, but they’re now the Irish banks are now getting about one and a half percent, which means that this year they’re likely to earn about a billion euros from depositing us with the European Central Bank. So you think they would pay a bit more to savers in this country as a result of that?”


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