AIB announces cuts in lending, deposit rates
Monday, 17 November 2008 18:16AIB has announced drops in its lending and deposit rates following the European Central Bank's decision on November 6 to cut its main lending rate by 0.5%.
The cut is good news for mortgage and loan holders, who will pay less in interest fees; but on the flip side, savers will not be earning as much interest on their deposits.
In mortgages, as already announced, the standard variable rate for owner occupier mortgages will decrease by 0.50% to 4.50% and for buy-to-let customers by 0.50% to 4.70%. ECB tracker related mortgages decrease by 0.50%.
Overdraft rates for personal and business customers will decrease by 0.50%, in tandem with the new ECB rate. The bank's standard variable 'AA' loan rate for business loans also decreases by 0.50%. The bank's standard variable 'A' loan rate remains unchanged.
On the deposit side, rates will also decrease, meaning savers won't earn as much interest on their money. The Regular Saver rate decreases from 7.00% (AER) to 6.50%. Special Term Account rates are also reduced - in the case of the three-year account to 3.85% and in the case of the five-year account to 4.25%. The rate on the Parent Saver Account at 9.50% is down 0.50%. The Online Notice 7 Account rate on balances up to €10,000 is reduced by 0.48% to 4.50%.
AIB's cuts will come into effect from close of business on 18 November 2008.
