Irish savers to get imminent bank deposit rate boost – Finance Minister Michael McGrath

Mr McGrath – speaking as he opened a new €22 million 30-bed, two theatre development at Mercy University Hospital Cork (MUHC) – said he “expected and anticipated” that Irish banks would move imminently to increase deposit saving rates.

Irish banks currently offer amongst the worst returns for savers in Europe – with Public Expenditure Minister Paschal Donohoe warning last week that it was not “unpatriotic” for Irish savers to look elsewhere than Ireland for better returns on their money.

Mr McGrath said he anticipated long-awaited good news for Irish savers very soon.

“Members of the public are absolutely entitled to make financial decisions in their own best interests,” he said.

“(But) I do anticipate that we will see increases in the weeks ahead in the rates of interest being paid by banks on certain savings and deposit accounts.

“I think the market conditions are such that such increases are justified, they are commercial decisions for the banks but I certainly expect and anticipate that we will see improvements in the rates being paid over the weeks ahead.

“While the banks have not fully passed on the increases in interest rates to mortgage holders, they have passed on even less of the increase in the European Central Bank (ECB) interest rate to savers and depositors.

“I do think that mismatch will now be addressed. We will see progress on that over the coming weeks.”

Mr McGrath also said State agencies are set to lead the way by offering better returns for Irish savers and investors.

“I have also had discussions with the National Treasury Management Agency (NTMA) who of course are responsible for the various State savings products.

“I know that they intend to bring a proposal to their own board next week which will then make its way ultimately to me for sanction – that will involve an improvement in the rates of return being paid on some of the State savings products being offered by the NTMA.

“I do think we will see progress in the future in the coming weeks on both of those fronts.”

Mr McGrath’s Cabinet colleague, Paschal Donohoe, said people were entitled to pursue the best returns for their savings no matter where that might be.

“It is up to people who have money they are going to put on deposit to get the rate of return that they think is best for them,” he said.

“Looking to put money in other parts of Europe, and other banks elsewhere in Europe, is not an unpatriotic act. It is the way the EU Single Market functions.

“We want European banks to provide services here in Ireland and if Irish households want to avail of those services and put their deposits elsewhere, that is the way the Single Market functions.”

Mr McGrath – speaking as he opened a new €22 million 30-bed, two theatre development at Mercy University Hospital Cork (MUHC) – said he “expected and anticipated” that Irish banks would move imminently to increase deposit saving rates.

Irish banks currently offer amongst the worst returns for savers in Europe – with Public Expenditure Minister Paschal Donohoe warning last week that it was not “unpatriotic” for Irish savers to look elsewhere than Ireland for better returns on their money.

Mr McGrath said he anticipated long-awaited good news for Irish savers very soon.

“Members of the public are absolutely entitled to make financial decisions in their own best interests,” he said.

“(But) I do anticipate that we will see increases in the weeks ahead in the rates of interest being paid by banks on certain savings and deposit accounts.

“I think the market conditions are such that such increases are justified, they are commercial decisions for the banks but I certainly expect and anticipate that we will see improvements in the rates being paid over the weeks ahead.

“While the banks have not fully passed on the increases in interest rates to mortgage holders, they have passed on even less of the increase in the European Central Bank (ECB) interest rate to savers and depositors.

“I do think that mismatch will now be addressed. We will see progress on that over the coming weeks.”

Mr McGrath also said State agencies are set to lead the way by offering better returns for Irish savers and investors.

“I have also had discussions with the National Treasury Management Agency (NTMA) who of course are responsible for the various State savings products.

“I know that they intend to bring a proposal to their own board next week which will then make its way ultimately to me for sanction – that will involve an improvement in the rates of return being paid on some of the State savings products being offered by the NTMA.

“I do think we will see progress in the future in the coming weeks on both of those fronts.”

Mr McGrath’s Cabinet colleague, Paschal Donohoe, said people were entitled to pursue the best returns for their savings no matter where that might be.

“It is up to people who have money they are going to put on deposit to get the rate of return that they think is best for them,” he said.

“Looking to put money in other parts of Europe, and other banks elsewhere in Europe, is not an unpatriotic act. It is the way the EU Single Market functions.

“We want European banks to provide services here in Ireland and if Irish households want to avail of those services and put their deposits elsewhere, that is the way the Single Market functions.”