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Ulster Bank encourages clients to save -- but cuts deposit rates


Photo: Getty Images

Photo: Getty Images

Photo: Getty Images

ULSTER Bank yesterday encouraged its customers to start the new year by developing a savings habit -- but cut its deposit rates.

The bank has issued six savings tips for the new year, but has cut a range of deposit rates by 0.25pc.

Rates on the Bonus Saver, Access Plus, Regular Savings, Pathway and eSavings accounts were reduced.

At the same time the head of branch banking at Ulster Bank issued a statement suggesting consumers kick-start the new year with a savings resolution.

Jim Ryan said a regular savings habit, however small, could provide a welcome cushion for the year ahead as well as forming part of a long-term future savings plan.

A spokeswoman for the bank said it was encouraging people to save with its Special Interest Deposit account, which pays 4pc, and has not had its rate cut.

Permanent TSB has also cut its savings rates, with the interest on its 21 Day Regular saver account going down by 0.25pc to 3.35pc.

The rate on its Instant Access account has been reduced by the same percentage to 2.75pc.

Banks are still paying elevated rates to savers as they struggle to get funds.

AIB has a Deposit 7 account paying 3.25pc on all balances up to €10,000. But savers must have another AIB account.

Nationwide UK (Ireland) offers 3pc, while KBC Bank offers 2.55pc.

Ulster Bank is one of a number of banks offering 4pc to monthly savers.

Others include EBS, AIB and Permanent TSB.

Ulster Bank said 35,000 people had opened new regular savings accounts in the last year.

Irish Independent