PERMANENT TSB has increased its variable rates for the third time this year in a move which could cripple householders already buckling under the pressure of increased taxes and pay cuts.
It will be passing on the 0.25% increase in the European Central Bank rate as it desperately tries to offset losses from its large tracker mortgage loanbook.
Permanent TSB is now seen as one of the most aggressive banks in the retail market. AIB said yesterday it was leaving its variable rates unchanged, although those with tracker mortgages will see their monthly payments go up.
Bank of Ireland said it was reviewing its variable rate; it didn't pass on the last ECB increase in April.
Permanent TSB increased its rates in April and in February when it controversially put variable rates up by 1% even though the ECB kept its rates frozen.
It means customers on variable rates will now be paying just under 6% for their mortgages - more than double the rate paid by those on tracker mortgages.
AIB is increasing the interest rate for savers with Regular Saver Account and AIB Parent Saver Plan holders earning an extra 0.25% AER.
The Online Personal Savings Plan rate and the 5-Year Special Term Account rate are increasing by 0.5% AER.
The Access Deposit 30 Account rate increases by 0.35% AER for amounts between €250,000 and €500,000, and by 0.5% AER for amounts between €500k and €2m.
Loan and overdraft rates for personal customers and 'AA' overdraft rates for business customers are increasing by 0.25%.
The 'AA' loan rate for businesses remains unchanged.
Meanwhile, AIB is to introduce VISA debit cards to replace its current Laser/Maestro card.
AIB has 1.4m debit cards in circulation.
The new cards will have all the functions of the old ones, AIB said in a statement, but will also allow people to use so-called contactless technology to pay for purchases of €15 or under by simply holding their card over a reader at participating outlets.
