AIB to end negative interest rates following ECB rate hike
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AIB will no longer apply so-called negative interest rates to accounts with holding balances of over €1 million following the European Central Bank’s decision to raise interest rates to tackle inflation.
Solicitor client accounts were among those affected by the introduction of negative interest rates by AIB and Bank of Ireland last year, which the Law Society described at the time as an “injustice” which would increase costs for home buyers.
In a statement online, the bank said: “AIB will cease applying negative interest rates to all affected accounts in August. All impacted customers will be communicated with confirming the effective date.”
Keith Walsh, a family lawyer and managing partner, told Irish Legal News: “Negative interest rates were a curse for clients and solicitors since their introduction in February 2021 and their abolition by AIB is good news for solicitors and their clients.”
He added that he hoped Bank of Ireland would now “immediately abolish” their own negative interest charges.
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