Help and guidance on negative interest for personal customers

We’ve made changes to our terms and conditions so that we may apply negative interest rates in the future, to the accounts of all personal customers who hold current and deposit accounts with us. These changes come into effect from 15 February 2022.
We currently apply negative interest to the accounts of personal customers that have combined balances of €3 million or more across their current and deposit accounts. From April 2022 we will start to apply negative interest to personal customers’ accounts with a combined balance of €1 million or more across their current and deposit accounts. When we apply negative interest we apply it to all balances. If the combined balance amount which brings a customer in scope for negative interest application change, then we will write to personal customers impacted by this change. 
If you’re a business customer you can visit our negative interest page for business customers here.

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 (credit) 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.

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

Talk to your Relationship Manager

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

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.