Interest Paying Current Accounts

Feb 2008
In Ireland it hasn’t been that long since all the main Banks charged us for the privelige of looking after out hard earned money. Some of them still do! Last year a trend was started by Halifax of paying fairly good interest rates on current accounts.
Halifax are still the highest interest on current accounts – they are paying 10% on balances up to €2,000. This could be worth worth up to €160 a year after DIRT is deducted if someone kept at least 2000 in the account. You must use the account to pay in your salary or other regular monthly deposit. You can’t just deposit 2000 euro and leave it there!
AIB have intriduced a temporary rate of 12% on their current account – to try and get some press attention and customers. AIB have many more branches than Halifax – and so will probably be more attractive to many potential customers for that reason.
The 12% rate is just for 3 months (from March 2 to June 2) It is only on the first 1500 euro – so is only worth a maximum of 36 euro after DIRT over those 3 months. The normal rate kicks in from June – 4% on the first 1500.
You must deposit a min of 1500 euro a month.
The 4% rate on current accounts is matched by BOI and PTSB’s current account interest rates.
Four percent on 1500 euro would earn you a maximum of 48 euro a year after tax. Better than nothing .
Ulster Bank don’t pay interest on their current account but they will credit €150 to you if you switch your current account before the end of March. This is more than 3 years interest on the other accounts mentioned above.

National Irish Bank’s Easy Plus account pays 1.75pc.