Permanent TSB is set to increase interest rates, including fixed-term mortgage rates and deposit rates, from Friday (18 November).

The bank will join AIB and Bank of Ireland in increasing fixed rates following the latest of three separate rate increases by the European Central Bank (ECB) since July.

PTSB blamed the ECB hikes for the decision, and said there would be no changes for customers on existing fixed rates and no changes to variable rates for new or existing customers.

The lender will increase its home loan fixed rate products by an average of 0.45%, with increases ranging from 0.05% to 0.9% depending on the length of the fixed-term, the sizes of the loan, and the loan-to-value ratio.

Customers who have received an offer letter from PTSB will have up until 15 February to complete the drawdown of their loans at the existing rate of until their current loan offer expiration, whichever date is earliest.

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Existing customers will also be able to access the same fixed rates as new customers with the exception of one introductory offer.

PTSB will raise interest rates on certain deposit accounts from 0.2% on its Regular Saver Online/21-day Regular Saver to 1.15% on its five-year fixed term account.

Patrick Farrell, retail banking director at PTSB, said that any customer applying for a mortgage over €250,000 will see increases from 0.05% to 0.45%.

"We are seeking to balance the reality of the increased interest rate environment with the need to provide a competitive offering to our mortgage customers and to provide certainty, in particular, to those customers who are already advanced on their mortgage journey," Farrell said.

"We also recognise the need to re-commence increasing deposit rates for savers and we are pleased to start this today by introducing increases to our Regular Saver and Fixed term deposit accounts."

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