Compare savings accounts in Ireland

With many different types of savings accounts available in Ireland, all with different terms, interest rates, and benefits, it can be difficult to know what type of savings account will help you maximise your money. On this page, you’ll find out more about the features and benefits of different types of savings accounts, how to compare savings accounts and how tax on savings works, giving you the information you need to decide which savings account is right for you.

Read on to understand why a savings account may be beneficial for you, and to help you choose the best savings account for your savings needs.

A savings account is an account you pay money into and earn interest from. It’s as simple as that. The critical thing to know is which type of savings account is best for you (more on that below).

A savings account works by you opening and paying into an account. In return for choosing to bank with your provider, they will pay you interest based on how much you have in your account. 

The bank will then use your money to give loans to other people, charging them interest. Essentially, a bank takes money from one person and rewards them with interest in the form of a savings account, and lends money to others and charges them interest in the form of a loan. Despite the bank using your money to provide loans, it is always available to you and is protected up to an equivalent of €100,000 per depositor and bank according to EU laws.

How interest is paid depends on your savings account, so it’s best to check the details to make sure you’re getting an account that’s right for you. It’s common to receive interest payments once a year, either on a predetermined date or on your account opening anniversary. Some accounts pay out interest monthly, and some may pay quarterly. In the case of fixed term deposits, you may only receive an interest payment when your account matures, which could be up to five years.

You’ll usually receive interest payments into a bank account you nominate, or the interest you earn can go straight back into your savings account. If you have a preference, make sure you check this when you’re initially comparing savings accounts.

No one can say with certainty when interest rates will change in Ireland, as the rates for the euro area are set by the Governing Council of the European Central Bank (ECB). When this changes, it influences financial institutions’ rates.

Here are some questions you can ask yourself to help you decide what type of savings account is right for you and your savings goals.

What are you saving for?

Deciding what your savings goals are can help you when you begin comparing savings accounts. For example, if you’re saving for something specific, such as a new car or a trip abroad, a demand deposit account may be ideal as you’ll be able to withdraw your cash as and when you need to without a penalty, as well as being able to top up your balance whenever you want. For long term savings, a fixed term deposit account may be a better option.

Do you need access to the money immediately?

Savings accounts have different rules as to when – and how often – you can withdraw your money. Demand deposit accounts usually allow you to withdraw your money whenever you like without incurring a penalty – but they do come with lower interest ratesthan fixed term deposit accounts, and the interest rate can go up and down at any point. Deposit accounts require you to lock your money away for a fixed period, with no access to your money within this time – but in return you’re likely to receive a higher interest rate.

How much would you like to save?

How much you’re looking to save will affect what type of savings account suits you best. Regular savings accounts typically require you to deposit a set amount of money every month. If you don’t make the minimum payment into your account, your account may be closed or you may be given a lower interest rate. Make sure you compare minimum payment amounts when you begin your research.

What features are most important to you?

Savings accounts in Ireland come with different features which may suit what you’re looking for. If you’re looking to get into the savings habit, a regular savings account requires you to deposit a set amount on a monthly basis. They also come with stricter rules than other savings accounts, like limited withdrawals across a period of time. If you want to be sure of how much interest you’ll earn, a fixed term deposit could be a good option over a variable savings account. Other features may also be important to you, such as having a Sharia-compliant savings account, or banking with a ‘Green’ bank or building society.

You will have to pay tax on the money you have saved, as the interest you earn on your savings is subject to Deposit Interest Retention Tax (DIRT). In 2024, DIRT is 33%, a reduction on previous years (it was 41% in 2014-2016, for example).

Any tax you need to pay on your interest is typically deducted by your bank before the interest is paid to you. If you’d like to know more about your deductions, you can request a statement of DIRT. 

In the case of demand deposit accounts offered on Raisin.ie, you’ll need to declare your own Deposit Interest Retention Tax (DIRT) as our partner banks are outside Ireland.

Deposit Interest Retention Tax does not apply to interest on demand deposit accounts that are owned by:

• Revenue-approved pension schemes
• Charities
• Companies that pay corporation tax
• People not resident for tax in Ireland

Quickly and easily compare, apply for and open savings accounts with competitive interest rates from a range of European banks by registering for a Raisin Bank Account. It’s free to open a Raisin Bank Account and savings accounts through our marketplace, and once you’ve been approved, you just need to transfer your deposit and watch your savings grow.