Bank of Ireland to Charge for Placing Cash on Deposit

Bank which is 14% owned by State to impose unprecedented levy on larger customers

by Ciarán Hancock
Irish Times

Bank of Ireland is set to become the first domestic financial institution to charge customers for placing their money on deposit with the bank.

This unprecedented move comes months after the European Central Bank began charging financial institutions for depositing money with it by charging them 0.4 per cent to hold their cash overnight.

The Irish Times has learned that Bank of Ireland, which is 14 per cent owned by the State, has informed its large corporate and institutional customers that it plans to charge them for deposits of €10 million or more from October.

It is understood that a negative interest rate of 0.1 per cent will be applied to such deposits by Ireland’s biggest bank.

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