German online neobank, N26, has begun offering users in Ireland access to a higher yielding instant access savings account.
The Instant Savings feature will enable Irish based customers to earn up to 4% interest a year on their savings.
Based in the N26 app, the service will allow users to move their money between their main account and their savings account at any time, the company said.
Interest is calculated daily and paid the following month.
"Thanks to our pan-European business model, we are able to bridge the gap between fragmented interest rate offers that may vary significantly across multiple markets," said Valentin Stalf, CEO at N26.
"We're pleased to be able to now offer customers in these markets highly competitive interest rates on their savings alongside our everyday banking and investing products."
However, the interest rate available is dependent on what tier of service the customer is signed up to.
N26 Metal customers will get up to 4% interest, but N26 Smart, You or free standard account holders will only receive 2.8%.
There is no maximum amount on what can be put into the account and the rates will be open to new and existing customers.
Money held in the accounts will be covered by the €100,000 per customer German Deposit Protection Scheme.
N26 is the latest of a number of neobanks and fintechs, such as Bunq and Raisin, that have started offering customers in Ireland access to higher yielding savings accounts elsewhere in Europe.
Latest data released by the Central Bank today showed that rates on new overnight deposits by households in Ireland rose to 0.13% in January, the highest level since December 2016.
But the average rate on new household term deposits actually fell 0.22% to 2.51% during the month.
This compares to 3.2% in the euro area.
€1.19bn was moved by households into Irish based term deposit products during the month, a 24% increase on December – a sign that the inertia among savers is starting to decline as they go in search of higher yielding products.
Most household deposits in Ireland are held in low-yield instant access accounts.
