Another bank is bowing to political pressure and hiking its interest rates for savers.

AIB has become the latest financial institution to raise its savings rates on certain products, as well as EBS saving accounts.

The Finance Minister and opposition politicians had been calling for banks to pass on ECB rate increases to customers.

AIB says it'll increase deposit rates up to 3 per cent for Regular Savers and AIB Fixed Term accounts from the middle of this month.