Central Bank should insist on a fairer deal for savers – Burke

The Central Bank should ensure that Irish banks pass on savings as a result of higher interests to their consumers, according to a Fine Gael TD.

Cork North Central TD, Colm Burke said: “Higher interest rates should also mean higher interest income for savers.

“When the ECB raised interest rates last year, the banks were quick out of the traps to raise borrowing costs for mortgage holders and other borrowers. Irish banks are also receiving 2.5% interest for their deposits at the ECB.

“Figures released by the banks indicate that net interest income at Irish banks is rising rapidly.

“The ECB is expected to raise interest again this year, contributing further to banks’ profits. However, while interest rates on borrowings will improve the income for banks, the speed at which Irish banks are increasing interest on savings has not kept up with interest on borrowings.

“When it comes to raising interest rates for savers the banks are moving at a snail’s pace.

“The bank’s treatment of savers needs to be highlighted. Banks are not passing on to savers higher interest rates on their own deposits at the ECB.

“The Irish Central bank needs to step in, and insist on a fairer deal for savers, particularly small savers and I would urge them to do this without further delay,” Deputy Burke concluded.