The financial crisis in Ireland has had far reaching consequences including notably for its banking sector. Beleaguered Irish banks have had to refocus on core markets in expense of expats saving abroad.
AIB is one such bank that is withdrawing from major expat markets including the Isle of Man and Jersey. This withdrawal will not be complete until the back end of 2013 but expats need to act now to avoid missing out on potential earnings.
To entice savers to part with the bank ahead of withdrawal, AIB are slashing interest rates. In fact, by 20 August, these offshore savings accounts will pay no interest at all.
While savers on a fixed rate deal will not have their interest rates cut, once the term expires the proceeds will be paid into an Instant Savers account. In addition savers with this type of account can move without incurring a penalty if they wish to do so.
AIB’s Privilege Demand, will drop from 2.5 percent on sterling deposits to 2 percent on 1 June and 1.25 percent on 2 July before falling to zero on 20 August.
The Instant saver account will drop from 2.5 percent to 2 percent and then finally to zero on similar dates.