PTSB is reducing the interest rates for savers on new personal and business fixed-term variable deposit accounts by 0.5%.
The changes will come into effect from 2 April, with the exception of two products where the change will take effect from 4 June.
The bank says that holders of existing fixed-term deposit products will keep their existing fixed rate until their current fixed term comes to an end.
The changes will apply to 6-month, 1-year, 18-month, 3-year, and 5-year fixed-rate deposits, including Interest First and Online fixed-term deposit accounts.
The current rates on these products range from 2% to 2.75% and will reduce by 0.5% to a range between 1.5% and 2.25%.
The changes will apply to the following Notice accounts; 21-Day Regular Saver (moving from 2.5% to 2%), 40-Day Notice (moving from 1% to 0.5%) and Business 32-Day Notice (moving from 2% to 1.5%).
Regular Saver (2.5% to 2%) and Business Demand (1% to 0.5%) accounts will also change, with effect from 4 June.
These are the first changes to PTSB’s deposit rates since last May.
The lender says it increased deposit rates eight times between November 2022 and May 2024.
The reduction in rates for savers comes amid falling European Central Bank interest rates.
Earlier this month the ECB lowered its rates for the sixth time since June 2024, lowering its deposit rate to 2.5% in a nod to slowing inflation and faltering growth, and said that rates were still restricting growth, even if less so than in the past.
The move by PTSB follows similar moves by other lenders.
Last month Bank of Ireland reduced the interest rate on its 12 and 18-month fixed-term deposits by 0.25%.
AIB has also reduced the rate on two of its fixed-term deposit accounts by 0.25 percentage points.
While German online-only bank N26 has cut rates twice this year, and Dutch bank Bunq has cut its top savings rate from 3.36% to 2.67%.
