I got the letter today, apart from the rate going down it also states,
“The Demand Online annual interest rate was guaranteed to be no lower than ECB Base Rate. This expired on 1st Jan 2009 and will not be renewed, however your account Terms and Conditions remain unchanged.”
This would suggest there will be further substantial reductions in the savings rate, possibly even less than the current ECB base rate of 2% and this is expected to fall further.
At 4% still (I think) second only to Anglo in terms of rates available
Anglo Irish Bank: Premium Demand
4.75% (from 29 Sep 2008) (>= ECB+0.5% until 1 Jan 2010) on €1 minimum to €100,000
4.00% (>= ECB unti 1 Jan 2010) on €100,001 to €1m maximum (rate applies to whole balance, not excess)
Interest paid annually.
Investec: One Month Notice
4.25% with 1 month's notice required for withdrawals.
Interest credited monthly. 20% of funds available instantly on one-off basis.
Northern Rock: Demand Online
4.00% on €1,000 minimum.
Online only.