AIB launched a new 31 day business notice deposit account at a variable rate of 1.5 per cent on Friday.
The bank said the new product was being introduced to meet an “important need” of business customers seeking a higher return with the flexibility to access funds by providing 31 days’ notice to withdraw.
Research undertaken by AIB early this year among business customers highlighted that 90 per cent have yet to open a deposit account that will give them a better return on their money.
A key barrier identified was the need to access their cash-flow and not lock money away for longer terms.
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However, 73 per cent of businesses said they would consider depositing funds at one month’s notice if there was a clear benefit, indicating an interest among business customers for a 31 day notice offering.
The new savings product is available in 170 AIB branches around the country, with deposit specialists available to engage with customers, or where an existing customer has a relationship manager.
The product is available to both new and existing AIB customers. There is no minimum or maximum balances for the account, and customers can add funds as many times as they wish.
AIB managing director of retail banking Geraldine Casey said: “We have launched this product to provide increased optionality for our business customers to earn a return on their surplus cash-flow.
“This 31 day notice deposit gives customers the option to earn a higher return on their funds, with a rate of 1.5 per cent, but maintains flexibility to access funds with 31 days’ notice which is key in an uncertain operating environment.”
AIB on Thursday cut the interest rate it offers on its fixed rate green mortgage products by a quarter of a per cent, along with its four-year fixed rate mortgage for loans of more than €250,000.
The cut, which followed the decision by the ECB to cut rates earlier this month, brings the interest rate on the green mortgage to 3.2 per cent, and the four-year fixed rate to 3.7 per cent.
Green mortgages can be applied to properties that have a BER rating of A1 to B3, and can also be applied to self-build properties with more than five years left on the mortgage term.
Rates will be available from September 27th to new and existing customers.
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