Bank of Ireland and PTSB raised interest rates on Thursday, becoming the first mainstream domestic Irish banks to increase rates since the European Central Bank began raising borrowing costs, while PTSB also applied broad increases to new fixed-rate mortgages.
The changes, effective immediately on Thursday, arrived weeks after the European Central Bank raised its interest rates by 0.25 per cent in early September (The Irish Times). That move marked the second rate increase by the central bank since June, and economists widely expect another hike in December (The Irish Times). While ECB rate increases typically hit tracker and variable mortgage holders first, Thursday’s announcements demonstrate how rising central bank rates eventually feed through to fixed products (Thejournal).
Bank of Ireland Savings Adjustments
Bank of Ireland increased the interest rates on fixed-term deposit savings accounts (The Irish Times). The lender raised its six-month and 12-month advantage fixed-term deposit savings rates by 0.25 per cent each, while bumping its 18-month offer by 0.5 per cent (The Irish Times).
Carol Meehan, director of everyday banking at Bank of Ireland, explained the strategy behind the new terms in a statement released Wednesday morning (The Irish Times).
These increases strengthen the returns available across our fixed-term savings range, while giving customers a choice of 6, 12 and 18-month terms and the option of accessing up to 25% of their money during the term.
Carol Meehan, Director of Everyday Banking at Bank of Ireland, via The Irish Times
Under the terms of the deposit accounts, customers can access up to 25 per cent of their deposited funds during the term, providing flexibility should they need access to some of their savings
(The Irish Times). The bank also noted that existing fixed-term deposit customers will continue earning interest at their current rate until their existing term expires (The Irish Times).
PTSB Raises Fixed Mortgage Rates for New Contracts
PTSB raised mortgage rates for new fixed-rate contracts by a weighted average of 0.3 percentage points (Thejournal). The exact adjustments, ranging from 0.2 to 0.35 percentage points, depend on the length of the new fixed term, the size of the loan, and the loan-to-value ratio (Thejournal).
Existing fixed-rate customers are unaffected by the changes, and variable rates for both new and existing customers remain untouched (Thejournal). Homebuyers who already hold an offer letter from PTSB have a 90-day window — extending up to 19 January 2027 — to draw down their loan at the previous, lower rate (Thejournal).
| Mortgage Product & Loan-to-Value | Previous Rate | New Rate |
|---|---|---|
| Five-year fixed (60-80% LTV) | 3.6% | 3.9% |
| Three-year fixed (60-80% LTV) | 3.75% | 4.05% |
| Five-year green mortgage (€250k+, >80-90% LTV) | 3.5% | 3.85% |
PTSB’s increases span several tiers. The four-year fixed rate rose by 0.2 per cent, representing the bank’s lowest increase (The Irish Times). The seven-year fixed rate, three-year higher value mortgage, and three-year green mortgage each increased by 0.25 per cent (The Irish Times). Standard five-year and three-year fixed rates went up by 0.3 per cent (The Irish Times). The largest adjustments hit five-year higher value mortgages, five-year green mortgages, and green mortgages exceeding €250,000 with an A or B energy rating, all climbing by 0.35 per cent (The Irish Times).
Broader Lending Market Context
The mainstream domestic banks’ adjustments follow similar moves by non-bank lenders operating in Ireland, including Nua Money and ICS Mortgages, which was recently acquired by Pepper Advantage (The Irish Times). PTSB advises customers to contact the bank directly to determine how the revised rate schedules will affect them (Thejournal).