THE BANK OF Ireland (BOI) is reducing interest rates on 12 and 18-month fixed-term deposits by 0.25% from this Thursday.

The bank’s advantage 12-month fixed term savings account, which is currently offered at 2.00% AER will be cut to 1.75%, and its advantage 19-month fixed term savings account will go from 2.48% AER to 2.24%. 

Customers who are in the process of opening new 12 or 18 month fixed-term deposit accounts can still avail of the current rates if they open their account by the close of business on 4 June. 

Existing fixed-term deposit account customers will earn interest at their original rate until the end of their term. 

BOI is not making changes to the interest rates of other account types at this time, including its SuperSaver account, which offers 3.00% AER for 12 months. 

A BOI spokesperson said that the European Central Bank “has lowered interest rates by the cumulative 1.75%”. 

“In the same period, Bank of Ireland has reduced its 12 and 18-month term deposit rates by a total of 0.75% including the changes announced today,” they added.