PTSB is adjusting interest rates on new personal and business fixed-term variable deposit accounts, reducing rates by 0.5%.

These changes will take effect from April 2, with two specific products seeing adjustments from June 4.

Existing fixed-term deposit holders will retain their current rates until the end of their fixed term.

The revised rates will apply to 6-month, 1-year, 18-month, 3-year, and 5-year fixed-rate deposits, including Interest First and Online fixed-term deposit accounts.

Current rates, which range from 2% to 2.75%, will be reduced to a range of 1.5% to 2.25%.

Additionally, adjustments will be made to the following Notice accounts:

• 21-Day Regular Saver: Reduced from 2.5% to 2%
• 40-Day Notice: Reduced from 1% to 0.5%
• Business 32-Day Notice: Reduced from 2% to 1.5%

Further changes, effective June 4, include:

• Regular Saver: Reduced from 2.5% to 2%
• Business Demand: Reduced from 1% to 0.5%

These adjustments mark the first deposit rate changes by PTSB since May 2024.

The bank had previously increased rates eight times between November 2022 and May 2024.

The current reduction aligns with recent European Central Bank (ECB) rate cuts, with the ECB having lowered its deposit rate to 2.5% in response to slowing inflation and economic growth.

PTSB’s decision follows similar moves by other financial institutions.

Bank of Ireland recently decreased interest rates on 12 and 18-month fixed-term deposits by 0.25%, while AIB reduced rates on two fixed-term deposit accounts by 0.25 percentage points.

European banks, including N26 and Bunq, have also implemented rate cuts in 2024.