PTSB has announced a 0.5% reduction in interest rates for savers on new personal and business fixed-term deposit accounts, with the changes set to take effect from April 2.
The rate cuts will apply to a range of fixed-term products, including six-month, one-year, 18-month, three-year, and five-year fixed-rate deposits. Interest First and Online fixed-term deposit accounts will also be affected. The existing interest rates, which currently range between 2% and 2.75%, will drop to a range of 1.5% to 2.25%.
Additionally, several notice accounts will see interest reductions. The 21-Day Regular Saver will decrease from 2.5% to 2%, the 40-Day Notice account will drop from 1% to 0.5%, and the Business 32-Day Notice account will move from 2% to 1.5%. Regular Saver and Business Demand accounts will also be impacted, with their rates declining from 2.5% to 2% and 1% to 0.5%, respectively, effective from June 4.
PTSB confirmed that customers who hold existing fixed-term deposit products will retain their current interest rates until the end of their fixed term.
This marks the first deposit rate change by PTSB since May 2024. The bank had previously increased its deposit rates eight times between November 2022 and May 2024.
The decision follows a broader trend of falling interest rates across the European banking sector, driven by the European Central Bank’s (ECB) monetary policy adjustments. Earlier this month, the ECB reduced its deposit rate to 2.5%, marking the sixth consecutive rate cut since June 2024. The move was aimed at addressing slowing inflation and weakening economic growth across the eurozone.
PTSB is not the only lender making adjustments in response to changing market conditions. Last month, Bank of Ireland reduced its interest rate on 12- and 18-month fixed-term deposits by 0.25%. AIB also lowered rates on two of its fixed-term deposit accounts by the same margin. Meanwhile, international digital banks have followed suit, with German online bank N26 cutting rates twice this year and Dutch bank Bunq reducing its top savings rate from 3.36% to 2.67%.
As interest rates continue to shift, savers are likely to seek out the most competitive options available, with financial institutions adjusting their deposit products accordingly.
