Calls for banks to pass savings on to consumers

Irish banks should pass on savings as a result of higher interests to their consumers, says Senator Robbie Gallagher, who says as rates rise so to should incomes for those with deposits.

“Higher interest rates should also mean higher interest income for people with deposits. When the ECB raised interest rates last year, the banks were quick to raise borrowing costs for borrowers. Irish banks are also receiving 2.5% interest for their deposits at the ECB. Figures released by the banks show that net interest income at Irish banks is rising,” he said.

He says that the Central Bank should ensure that this happens.

“The ECB is expected to raise interest again this year, contributing further to bank profits. However, the speed at which Irish banks are increasing interest on savings has not kept up with interest on borrowings. 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 Central bank needs to step in, and insist on a fairer deal for savers, particularly small savers without further delay,” he concluded.