MoCo, the Irish unit of Austrian bank Bawag, is launching a new easy-access savings account with an initial annual interest rate of 2 per cent as it seeks to widen its product base beyond mortgages.
While the mainstream banks currently offer rates of as much as 3 per cent for certain instant-access savings accounts, there are restrictions in how much a customer can put in such accounts every month.
The new MoCo EasySaver account will not have such limits, a spokeswoman for the lender said.
Meanwhile, about 85 per cent of household savings are held in current or on-demand accounts where they are receiving just 0.13 per cent on average in July, according to the latest Central Bank figures.
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“Irish consumers deserve more choice and better value when it comes to their savings,” said Aidan Sherry, managing director of MoCo. “With the MoCo EasySaver account we’re combining security, easy access and a competitive rate to make saving simple and rewarding.”
MoCo, which operates a branch of Bawag in Austria, started mortgage lending early last year through the broker market after a soft launch in late 2023. The spokeswoman declined to give the value of the home loans business it has written to date. The launch of a deposits offering in Ireland opens up a new funding avenue for the business as it continues to grow.
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“We cannot disclose these details, but we are very happy with the growth we’ve seen,” she said. “We’re partnered with multiple brokers in the market and continue to expand, and still look at Ireland as a growth opportunity.”
She added: “The long-term plans are to leverage Irish deposits in Ireland as we want to continue growing in Ireland and doing more business.” The rate on the savings account is subject to change.
All eligible deposits are protected under the European Union harmonised deposit guarantee scheme, up to €100,000 per depositor.
Spanish banking group Bankinter’s Irish branch, Avant Money, is also planning to launch a deposits offering in the near term. It had a €3 billion mortgage portfolio and €1 billion personal loans book as of the end of June.
Bawag, based in Vienna, took over the company behind MoCo in March 2023 for a nominal amount of €35.
The deal came as Dutch merchant bank NIBC, which was a key backer of the company behind MoCo, decided earlier that year against providing more equity finance to the start-up. MoCo is a trading name for the Irish branch of Bawag. Its registered name is Bawag PSK.
