Interest rates on Deposit Accounts in Ireland have been dropping over the past year or two – and repeated cuts to the State Savings Rates will probably encourage the banks to drop their interest rates even more.
On our page of the Best Savings Rates in Ireland – you will see that the best available instant access interest rate in the banks is 2.3% - this is available at KBC (Jan 25th 2013)
If you are willing to lock your money away for a five years you can get slightly better rates in state savings products.
The 5.5 year savings certificate pays 1.75% Tax Free (A normal deposit account would need to be paying about 2.97% to match this) .
Or you could go for the 10 year Solidarity Bond which pays 2.66% after taxes – which is the equivalent of about 4.2% before DIRT. But you have to keep the money locked away for 10 years to get that rate.
If you are lucky enough to have some savings – then you should check if you are getting the best interest rate. Some deposit accounts pay as little as 0.1% a year ! If you had €5000 and moved it to an account paying 2.3% – you could get about €66 extra interest in a year after the 41% DIRT which is the rate from Jan 2014
See more of our Money Saving Tips.