asked the Minister for Finance the present rate of interest in this country on bank deposits and overdrafts; and how this compares with the rates in other EEC countries and the USA.
Ceisteann—Questions. Oral Answers. - Bank Interest Rates.
39.
As the reply is in the form of a tabular statement, I propose, with your permission, a Cheann Comhairle, to circulate it with the Official Report.
Following is the statement:
Statement showing the Associated Banks' Interest Rates on Deposits and Overdrafts and comparable interest rates in the other Member States of the EEC and in the USA.
|
Country |
Interest Rates |
|
|
Deposits |
Overdraft (a) |
|
|
Ireland |
8 per cent, 10.50 per cent, 12 per cent (b) |
12.50 per cent |
|
Britain |
9.50 per cent, 11.50 per cent (c) |
14.00 per cent |
|
Belgium |
Comparable data not available |
11.00 per cent |
|
Denmark |
12.00 per cent |
|
|
France |
12.00 per cent |
|
|
Germany |
14.50 per cent |
|
|
Italy |
10.00 per cent |
|
|
Luxembourg |
7.00 per cent |
|
|
Netherlands |
11.00 per cent |
|
|
United States |
9.75 per cent |
(a) These are prime lending rates, i.e. the lowest rate of interest charged on short-term advances to prime borrowers. Higher rates are charged depending on the term of the loan and the status of the borrower and in Ireland these range up to 16.75 per cent and in Britain up to 18 per cent.
(b) 8 per cent on deposits of less than £5,000
10.50 per cent on deposits of £5,000 and less than £25,000
12 per cent on deposits of £25,000 and over.
(c) 9.50 per cent on deposits of less than £10,000
11.50 per cent on deposits of £10,000 and less than £25,000.
The minimum rate paid on deposits of £25,000 and over is 11.50 per cent as the rates paid on such deposits are related to London Interbank Market rates.