Bank of Ireland increase interest rates

Bank of Ireland have announced that they will be increasing the interest rate on their standard variable mortgage's by 0.5%. They did not increase their rates after the ECB rate hikes in April and July but have announced that they can no longer afford to absorb the cost of providing the lending facilities. Tracker mortgage customers rate would have automatically risen in line with the ECB rate. A increase of 0.5% adds €31 to the monthly repayment for every €100,000 owed.

Interest rates on overdraft facilities, personal and business loans will also increase by the end of the month.

In what could be positive news for mortgage holders, experts are now not only expecting the ECB to keep interest rates steady well into 2012, they are actually tipping that there could be a rate reduction on the cards. This is due to the fact that sluggish growth rates have meant that the risk of high inflation in the Eurozone has abated somewhat.

FS

BOI Customers to receive new 'contactless' Visa Debit Card

Further to my recent post about Debit cards, Bank of Ireland have announced that all of its current laser cards will be replaced in the coming months with a new Visa Debit card. The card will offer all the services you normally receive with your laser but with one small difference, this will have 'contactless' payment capabilities.

Rather than putting your card in the chip and pin device and punching in your pin, this card will allow you to pay for small purchases (under €15) by simply pressing your card against the scanner and going about your business. For security reasons you will be obliged to use the current pin system after a certain number of contactless transactions.

Apart from this (for Ireland) innovation, Visa Debit offers further benefits, it is accepted anywhere a normal Visa credit card can be used. This means it should make spending abroad and buying online should be less painful.

FS

Debit cards more popular than ever

The Irish Payments Services Organisation (IPOS) announced during the week that the popularity of the Debit card is growing and for the first time ever there are twice as many Debit cards as Credit cards.

This reflects the fact that people are more interested in paying down their debt then getting out there shopping with money they don't have!

Two Debit card types are available in Ireland. Laser cards are supported by BOI/AIB/NIB and the relatively new Visa Debit card has been picked up by Ulster Bank/PTSB. Expect Laser to be phased out over the next three years or so as Visa Debit is far more widely acceptable online/overseas.

As you can only spend what you have in your current account with debit card, this is a form of self imposed austerity that is being practised by the masses....perhaps as penance for our credit card sins during the 'Tiger era'.

FS