BoI New Negative Deposit Rate T&Cs for Business Current & Demand Accounts

[Lightning]

Bank of Ireland have published new T&C's for their business current accounts and business demand accounts. The new T&C's allow Bank of Ireland to apply negative rates. The new T&C's apply from 20 March 2017.

BoI have rewritten the T&C's for a deposit contract from where the bank pays you to one where the bank may pay you or you may pay the bank or neither pay each other (zero rate).

Bank of Ireland already apply negative rates to corporate accounts over very large balances but not to normal business current accounts.

The new T&C's are here.

An extract is here ...

1. Positive, Negative and 0% Interest; Changing rates 1.1. We may at our discretion apply a negative rate of interest or a positive rate of interest to the Account at a rate or rates we determine. We may apply an interest rate of 0% per annum to the Account. 1.2. We may change our interest rate to 0% per annum. We may change a positive interest rate to a negative interest rate or vice versa. We may change a positive rate of interest to a rate that is more positive or less positive. We may change a negative rate of interest to a rate that is more negative or less negative. 1.3. We will tell you of changes in interest rates in a way which complies with law. We will choose the way that we tell you: we can do it by letter, electronic means, telephone (including recorded message) or place an advertisement in an Irish daily or weekly newspaper. If a change is to your benefit we may decide to make the change immediately and tell you afterwards. 2. About negative interest 2.1. If negative interest applies to the Account the effect will be that we will calculate and you will be obliged to pay us negative interest in full and on time. Any amount of negative interest that becomes due by you to us on the Account is called a “Negative Interest Amount”. 2.2. For so long as negative interest applies to the Account or part of it, negative interest will be due from you to us on a monthly basis. We will deduct a Negative Interest Amount from the Account when it becomes due. 2.3. You permit us to pay to us from money available in your Account any Negative Interest Amount. 2.4. For so long as negative interest applies to your Account, you agree to keep enough money available in your Account to pay each Negative Interest Amount in full and on time. We can stop you withdrawing money from your Account where we reasonably anticipate that will cause a breach of this clause.