Bank of Ireland is set to increase deposit rates on a number of its accounts from 8 September.
Banks are coming under growing pressure to funnel through the benefits of European Central Bank interest rate increases over recent months to those with savings.
Last week, the Minister for Finance said he expects deposit rates to rise in the weeks ahead.
Today, Bank of Ireland announced changes to a number of accounts, including its SuperSaver, MortageSaver and Regular Saver.
Interest rates on SuperSaver accounts will increase from 2% to 3% for the first 12 months. After that, a rate of 2% will apply, up from 1%, on balances up to €30,000.
On MortageSaver accounts, interest rates will increase from 1% to 2% on balances up to €15,000. A rate of 0.5% will apply on balances over €15,000, up from 0.01%.
These rates will be available for new and existing customers. The bank said existing customers do not need to take any action, with the new rate set to be applied automatically.
Interest rates on Regular Saver accounts will also increase from 1% to 2%, on balances up to €12,000. A rate of 0.5% will apply on balances above 12,000, up from 0.01%. Again, the bank said these changes will be applied automatically for existing customers.
"Since the ECB started to increase rates last year, we have made a number of improvements to our savings products," said Susan Russell, CEO Retail Ireland, Bank of Ireland.
"These latest changes will increase our SuperSaver to a market leading 3%," she added.
The bank also announced the addition of a new '10% Access' feature to six month, one year and two year term deposit accounts, allowing access of up to 10% of the initial balance.
A rate of 1.5% will apply to the six month term deposit, while a rate of 2% will apply to one and two year term deposits - available to both personal and business customers.
Meanwhile, the 31 day notice interest rate is set to be increased to 1%, from 0.5%.
"Customers are telling us that they want a term account, but also the security of some access to cash in the event of an unexpected expense," Ms Russell said.
"The addition of the 10% access feature to our Term Deposit accounts and our improved rate for 31 Day Notice Accounts provides access to savings and competitive rates," she added.
For Demand Deposits, interest rates will be increased to 0.10%, from 0%.
"I would encourage customers to switch their money from their current account to a savings or deposit account where they will benefit from interest payments," Ms Russell said.
"The market has gone from eight years of negative rates and, now that savers can benefit from better rates, we are encouraging customers to take action, start a savings habit or move money into interest earning products or accounts," she added.
