AIB is to increase its surcharge interest rate from 9% to 12% a year for branch loans and overdrafts. The increase will take effect from June 16.
Surcharge interest applies to what the bank calls 'unscheduled or unauthorised' borrowings by customers on their accounts. The rate was last changed in 1995.
AIB says it is upping the rate as a result of the increased costs connected to funding these unauthorised debit balances and the associated credit management activities.
