Help and guidance on negative interest for business customers

We currently apply negative interest to the accounts of business customers that have combined balances of €1 million or more across their business current and deposit accounts. If the combined balance reaches €1 million or more we write to customers to give them notice that we will apply negative interest to their accounts and let them know what it means for them. When we apply negative interest we apply it to all balances.

What is negative interest?

How have negative interest rates come about?

Since 2014, all banks in the EU have had to pay negative interest to their central bank. We’ve delayed introducing negative interest for as many of our customers for as a long as possible. However, European Central Bank negative interest, market conditions and the cost of providing current and deposit product services, now mean that some banks in the EU have had to introduce negative interest for their customers.

What are negative interest rates?

Negative interest applies to positive balances in a bank account. This means that there is an interest cost to keeping money in a bank account when balances are above a certain amount. This negative interest cost is separate to fees and charges associated with bank accounts.

For how long will interest rates be negative?

Interest rates on deposits have already been negative for much longer than expected. There are differing forecasts as to how long they will remain negative.

How is negative interest applied?

We currently apply negative interest to business customers’ accounts that have combined balances of €1 million or more across their current and deposit accounts. A monthly review process is completed and more information about this is in the notice letter we send to customers impacted by negative interest rates.
 

How much will negative interest cost? 

Negative interest rates are confirmed through our Relationship Manager engagements or in the notice letter we send to customers impacted by negative interest rates. The combined balance amount for negative interest application, currently €1 million, and the negative interest rate are variable and are subject to change.
 
For illustration only: if a customer holds a constant balance across their accounts of €1 million over a period of 30 days and if the rate was -0.50%, this would mean that they will pay €410.96 in negative interest for that same period. As balances usually fluctuate throughout the month, the amount paid may differ to the amount illustrated.
 

If negative interest is no longer applied to my accounts can it be re-applied?

We monitor customer accounts regularly. If the combined balance reaches €1 million or more at a later date we will write again to provide the customer with new notice that we will apply negative interest to their accounts.

Negative interest rates Questions & Answers

Talk to us

If you have further questions or want to discuss this with a member of our team you can contact us by
book

Call Us Now

If you have questions, you can call 0818300135 from 9:00 and 17:00 Monday to Friday (excluding Bank Holidays).
 
book

Talk to your Relationship Manager

If we have applied negative interest to your accounts, speak to your Relationship or Branch Manager for more information.
 
book

Talk to a Financial Advisor

Request a call back from a qualified financial advisor to discuss financial planning options.
 
 
Allied Irish Banks p.l.c is tied to Irish Life Assurance plc for life and pensions business. Allied Irish Banks p.l.c is regulated by Central Bank of Ireland. Irish Life Assurance plc is regulated by the Central Banks of Ireland.