The competition for bank deposits has intensified as Halifax has become the latest bank to offer higher interest rates to try to attract savers from its rivals.

The bank has introduced a savings account, Halifax Flexi Saver, that offers a rate of 5.15 per cent for 12 months on balances up to €9,999 and allows customers unrestricted access to their savings.

The account offers savers a rate of 4 per cent after 12 months or on balances of €10,000 and over.

Halifax said its new account paid up to 10 times more than AIB and five times more than Bank of Ireland. Citing Moneymate, the bank said AIB offered savers a 0.55 per cent rate on demand accounts up to €63,399, while Bank of Ireland offers a rate of 0.9 per cent up to €100,000 on demand deposit accounts.

Postbank, a joint venture between An Post and Belgian bank Fortis, has launched a new deposit account, Premium Saver, which offers customers a rate of 4 per cent on balances over €10,000, rising in stages to 4.3 per cent for deposits of between €250,000 and €1 million.

The bank is offering customers a bonus rate of 4 per cent on its demand Solid Saver account until Friday [January 11th], after which the rate reverts to 3.3 per cent.

Other banks have been offering competitive rates.

First Active has a rate of 5.22 per cent on an internet only account on balances up to €15,000 and 4.33 per cent on balances over €15,000.

AIB offers an internet account paying a rate of 5 per cent up to €10,000 and 3.5 per cent over that amount. National Irish Bank offers a rate of 4.5 per cent on balances up to €50,000.

Ulster Bank has relaunched its €150 cash offer to customers who switch their current account. The offer, which was open last year, will run again until March 21st.

The bank said 100,000 customers opened a current account with the bank in 2007.