Interest rates rise at Bank of Ireland and PTSB

What it all means, explained

From Thursday, 22 October, Bank of Ireland and PTSB raised interest rates on fixed-rate products.

Since the European Central Bank's increase in June, this is the first move by a mainstream, domestically owned Irish bank.

As Bank of Ireland lifted rates on several fixed-term savings accounts, on the same day, PTSB raised a range of its fixed mortgage rates.

Why interest rates are rising at Irish banks now

The latest comes after the ECB's quarter-point rate increase in early September, making it the second rise since June.

According to economists, another hike is expected in December, which will add further pressure on borrowers while rewarding savers who lock in fixed terms.

Even as smaller, non-bank lenders moved first, both lenders had held off raising their own rates.

In recent weeks, Nua Money and ICS Mortgages, now owned by Pepper Advantage, had already increased their rates.

According to Carol Meehan, Bank of Ireland's director of everyday banking, the increases "strengthen the returns available across our fixed-term savings range."

What the increases mean for savers and mortgage holders

When it comes household budgets, the increases add to pressure more broadly.

As per a recent poll, many young adults are considering leaving Ireland, as they seek a better quality of life.

Earlier, Fine Gael had signalled during Budget 2027 negotiations that the fuel excise cut would stay.

Meanwhile, mortgage and savings rates are now moving upward too.

How much have Bank of Ireland's savings rates gone up?

Bank of Ireland has raised its six and 12-month fixed-term savings rates by 0.25 percentage points.

At the same time, its 18-month rate has risen by 0.5 points.

During the term, customers can access up to 25% of their deposit, while anyone already locked into a fixed term keeps their old rate until it expires.

Which PTSB mortgage rates have increased?

PTSB has raised several fixed mortgage rates. The smallest increase was 0.2 points on its four-year fixed rate.