Bank of Ireland is cutting the interest rates on its 12- and 18-month fixed-term deposits by around 0.25 percentage points from tomorrow.

The 12-month deal currently pays 2% and the 18-month account rate is 2.48% a year, adding up to 3.73% for the term.

After the cuts, the year-long account will pay 1.75% and the 18-month account will be down to an annual rate of 2.24%, which is 3.36% for the term.

There are no changes to any other savings accounts, including Super-Saver, which continues to offer 3% for a year.

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

A BoI spokesman said: “Existing fixed-term deposit account customers will continue to earn interest at their original rate until the end of their term.”

A quarter of savings can be withdrawn during the term of an Advantage Fixed-Term Deposit Account.

Finance expert Brendan Burgess, of askaboutmoney.com, said of the move: “It’s not really that relevant because they’ve got so much in non-interest-bearing accounts, in current accounts, that’s the big thing.

“So why they’re cutting these I just don’t know.

“They’re charging some of the highest mortgage rates in the Eurozone and paying very little interest, which is why Irish banks, Bank of Ireland and AIB, are so profitable.

“And in a sense we’ve only got ourselves to blame, as customers we won’t shop around.”