AIB increases interest rate on current accounts from 4% AER to 11% (AER 5.81%)

Irish
AIB increases interest rate on current accounts from 4% AER to 11% (AER 5.81%)
By Finfacts Team
Mar 13, 2007, 17:28

Printer-friendly page from Finfacts Ireland Business News - Click for the News Main Page - A service of the Finfacts Ireland Business and Finance Portal

Eugene Sheehy, CEO AIB Bank

AIB today announced today that it has increased the rate on its high interest current account from 4% AER* to 11% (AER 5.81%). The new rate is available to new as well as existing customers.

The offer is available from close of business 14^th March until 14^th June 2007, when the rate will revert to 4%.

The high interest account pays interest on balances up to €1,500 to customers with monthly lodgements of €1,500 or more.

Earlier on Tuesday, PermanentTSB announced that it will pay interest of 10% on account balances for new current accounts opened at the bank before the 4^th of May.

Hugh O’Keeffe, Head of Resources Strategy and Products at AIB Bank, said: “AIB led the market with the introduction of our 4% high interest current account in February 2007. The response from our customers both new and existing has been emphatic in that they clearly welcome this development. To further underpin the strength of our commitment to this market, we have increased our rate today to a market leading 11% for all customers of this account for a period of three months”

*AER = Annual Equivalent Rate - A notional rate which demonstrates what the interest return would be if the interest was compounded and paid annually.