Rabobank's Irish savings operation has reviewed its four year fixed-term deposits offering, noting on its website that it could not offer "competitive rates suitable for the Irish market".
It also said its own strong credit rating and current market volatility were factors.
Banking sources say Rabodirect has taken the step because it does not want to compete with Irish banks which have been winning customers with high-interest accounts in an effort to rebuilt their balance sheets.
People are still able to put money on fixed term deposit with Rabodirect, but the bank advises them to put money into a demand account instead.
Banking sources have told RTE News that Irish banks have been under significant pressure to win deposits from consumers in the wake of the banking crisis.
As a result they have offered relatively high rates to customers, with banks such as AIB paying 3.95% on a one-year fixed term deposit account.
In a statement to RTE News this afternoon Rabobank said: "Unlike other banks in Ireland, our primary business is in the on-demand space and we only have a relatively small amount of business in our term deposit book. Our prudent banking practices mean we offer sustainable rates to our customers who can rest assured their money is on deposit with one of the world's safest banks."
