Interest rates on Deposit Accounts in Ireland have been dropping over the past year or two – and the recent 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 (Aug 24th 2013)
If you are willing to lock your money away for a five years you can get better rates in state savings products.
The 5 year savings certificate pays 2.11% Tax Free (A normal deposit account would need to be paying about 3.35% to match this) .
Or you could go for the 10 year Solidarity Bond which pays 2.79% after taxes – which is the equivalent of about 4.1% 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 €75 extra interest in a year after the 33% DIRT.
See more of our Money Saving Tips.