Anglo Irish Bank reduces Interest Rates

Anglo Irish Bank yesterday had an interesting press release – which appeared to be launching a new product – but in fact it is just announcing  drop in the existing rates on the 6 and 12 month fixed rate deposits.
The  1 year fixed term deposit account will get a rate of 5.25% (was 6%) . The new rate for  6 month fixed term deposit accounts is  4.5%  (previously 5.35%) .
The lower rates are effective  from next Tuesday January 20th 2009. (even though the web site statement says 2008 !)

Commenting on the new offer, Derek Keogh – Head of Personal Savings at Anglo Irish Bank in Ireland, said: “Yet again, we are leading the competition when it comes to value for money for savings and consistently delivering simple competitive products. There are billions of savings out there earning little or no interest and we have always been there to provide an alternative.”

No mention of dodgy loans to directors!

The sudden announcement from the government late yesterday – that Anglo Irish was being nationalised – may mean more changes to rates in the near future. Investors may well be wary of depositing cash with Anlo Irish – even though thay are covered by the Irish government guarantee.