PTSB offers savers interest of 2.75% up front as banks vie for deposits

PTSB is offering savers a rate of 2.75 per cent on one-year fixed-term savings with the option to receive interest up front.

The European Central Bank (ECB) recently cut the main savings rate to 3.75 per cent, which will impact on variable savings rates. Recent months have seen a number of offerings for savers in the Irish market in response.

PTSB, which launched its new product on Friday, said customers can receive their interest upfront as a lump sum within the first month of opening the account.

“Customers can then earn interest on their interest by reinvesting it in another savings account, if they wish to do so,” it said.

“They also have the option of withdrawing the money by transferring it to a current account (or a bank account that can receive inbound transfers) or receiving a cheque payment.”

PTSB head of retail distribution Eddie Kearney said the product was “the only of its kind in the Irish market”.

A minimum balance of €5,000 applies and the product is only available to personal customers.