AIB offers better saving rates to Germans

The state-owned bank is hoping to attract more business in Germany...

AIB is joining 11 European counterparts to offer a one-year, fixed term deposit rate of 1.4% to German savers - this offers a return which is three times that offered to Irish savers.

It’s highest comparable deposit rate here is just 0.45% while its fully owned subsidiary, EBS offers 0.7% on 12-month deposits.

The higher deposit rate is on offer through a new German online company, Savings Global, its website says that savers must be resident in the Federal Republic of Germany.

Savers in Germany can deposit between € 10,000 and € 100,000, no withdrawals are allowed during a fixed term.

AIB linked up with Savings Global last May, this is believed to represent a small portion of its deposit rate, a premium has to be offered to encourage Germans to invest.

A spokesperson for Savings Global told The Irish Times that it’s about to launch an English language service across Europe in the coming weeks, known as Raisin.com.

The new service will allow savers across Europe, including Ireland to access deposit rates as high as 1.6% on a one-year term deposit or 2% per year for longer term fixed savings.