Demand deposit accounts

Demand deposit accounts are one of the most simple types of account, offering both flexibility and competitive rates of interest for Irish savers. You can typically open a demand deposit account with as little as €1, top it up whenever you like and withdraw your money at your own convenience. Entirely deposit-protected up to €100,000 per depositor and bank and free to open online.

A demand deposit account allows you to earn interest on your savings while offering the flexibility of accessing your cash whenever you need to. Suitable for both lump sum amounts and regular monthly savings, you can save as little as you need or as much as you want to, all on a timescale that suits you.

Demand deposit accounts usually have no minimum term and may also be offered as a joint account (however, note that it isn’t possible to open a joint demand deposit account with Raisin). To be eligible to open a demand deposit, you’ll need to be at least 18 years of age, and you might need to have an existing account with your chosen provider. It’s important to note that the interest you earn on your savings is subject to Deposit Interest Retention Tax (DIRT).

Demand deposit accounts pay interest annually, usually on a set date or on the anniversary of the opening of your account, but you may also find deposit accounts that pay interest monthly or quarterly (for example, Raisin Bank demand deposit accounts pay interest quarterly). Depending on the account you chose, you might also be asked to nominate another bank account for the interest to be paid into.

Whether or not a demand deposit account is right for you will depend on your financial circumstances, your financial goals, and whether the terms of the account suit you and your lifestyle.

To help you decide, consider the pros and cons of demand deposit accounts (more on those below), and compare different types of savings accounts.

Finding the best demand deposit account for you will depend on two things: what requirements you have and how much research you conduct. To make this process easier, it’s best to make a note of the following:

• Do your own research
• Make sure to read the small print
• Have a clear understanding of what your savings priorities are. These could be things like which demand deposit account offers the best interest rate, whether the account offers online banking services, when and how often you can make withdrawals, etc.

When opening a demand deposit account, consider the following questions:

• Does this account suit my savings style?
• Will this account help me meet my savings goals?
• Can I access this account when and wherever I need to?
• Will the interest rate help me meet my target savings number?

An important factor in choosing the right account for you is assessing your savings style. If you tend to be an impulse buyer and struggle to save, you might want to look for a savings account with restrictions that will prevent you from easily withdrawing your cash, such as a fixed term deposit account, which locks your money away for a set period of time.

Alternatively, if you want the flexibility of being able to access your savings as and when you need them, a demand deposit account may be a better option for you.

Ultimately, keeping your money safe and earning interest at the same time is never a bad decision, but experts recommend that you conduct your own research before settling on an account.

Most demand deposit accounts can be opened with as little as €1, but you should keep in mind that you’ll only earn more interest the more money you can deposit.

Yes, you will have to pay tax as the interest you earn on your savings is subject to Deposit Interest Retention Tax (DIRT). In 2024, DIRT is charged at 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 Raisin demand deposit accounts, 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

Yes. The Deposit Guarantee Scheme protects your money in the event that your bank, building society or credit union authorised by the Central Bank of Ireland collapses. Deposits up to €100,000 per person, per financial institution are protected under the scheme, and your money is usually paid to you within 15 working days of your institution failing.

If you have a demand deposit account with a Raisin partner bank outside of Ireland, your account will be protected by the Deposit Guarantee Scheme in your bank’s country, in accordance with EU law.

The most important thing to consider when comparing demand deposit accounts is what you want to get out of your savings. This is likely to differ from person to person, but knowing what your financial priorities are will help you compare accounts and narrow down your search. Your priorities could include:

• Highest interest rates
• Easy access to your money, wherever you are
• Perks and benefits, such as insurance and offers

Raisin Bank partners with banks across Europe which typically offer more competitive rates of interest than Irish banks. Interest compounds quarterly, which means you’ll benefit from the effect of this compounding. You can also partially withdraw funds whenever you need them.

And don’t forget that your deposits will be protected under the Deposit Guarantee Scheme in your bank’s country up to €100,000 per depositor and bank.