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Savings bonds to suit your needs
Take advantage of high interest rates for fixed-term bonds
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Interest rates up to 3.50% AER
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Full transparency
Free savings bonds with no hidden costs
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Keep track at a glance
Manage your savings entirely online
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What is a savings bond?
A savings bond is essentially the same as a fixed-term savings account. You deposit a lump sum for a fixed period of time and receive a fixed interest rate. You cannot access your savings during the agreed duration. However, banks often offer higher interest rates on savings bonds than demand deposit or easy-access accounts, as they know in advance how long they’ll have your money.
In Ireland, Post Office (An Post) savings bonds are available as a form of state saving, but this isn’t your only option.
Savings bonds, savings certificates, National Solidarity Bonds: What is the difference?
In Ireland, the term “savings bond” often refers specifically to fixed-term savings accounts offered by the state, operating under the brand name Ireland State Savings. The savings bonds are offered by the Minister for Finance in Ireland, who acts through the National Treasury Management Agency. This is the agency responsible for managing the Irish national debt. The Irish government uses the money you save with them to fund government expenditure.
Savings bonds
Under Ireland State Savings (also known as Ireland Post Office savings bonds, or An Post savings bonds), a savings bond is a three-year fixed rate savings account. State savings bonds are considered a very safe investment, as the government is legally obliged to repay the money. Savings placed in an Ireland State Savings Bond or Savings Certificate are also tax-free, including DIRT, income tax, universal social charge and social insurance (PRSI). The minimum investment is €50, while the maximum is €120,000. This increases to €240,000 for jointly held savings bonds.
Savings certificates
Savings certificates last 5.5 years and offer a slightly higher rate due to the longer duration. These are also tax-free. As with savings bonds, the minimum investment for savings certificates is €50, while the maximum is €120,000 for individuals and €240,000 for joint holdings.
National Solidarity Bonds
Available for a duration of either 4 or 10 years, these are considered a mid to long-term investment. As the market interest rates can alter a lot in ten years, signing up to a ten-year bond could mean that the agreed rate ceases to be competitive by the end of the term. The same maximum investment amount applies as for savings bonds and certificates.
Are saving bonds in Ireland a good investment?
While there are periods when Irish State Savings products boast impressive rates for bonds, the state isn’t always able to offer competitive rates. When the government has greater liquidity, it can afford to reduce interest rates.
As with most fixed term savings products, if you attempt to access your money before the end of the fixed period, you are likely to lose any potential returns.
It’s worth doing your research to make sure you are getting the best interest rate, as often you will be able to find higher rates than An Post savings bonds.
Broadening your banking horizons: High-interest savings bonds abroad
Raisin Bank enables savers to access higher interest rates than those available in Ireland. We’re keen to break down the barriers in European banking. And the best bit? It’s completely free. No hidden costs, no introductory rates, no ongoing costs. Just simple fixed-term savings accounts you can manage entirely online and in your language.
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How do I find the best savings bond for me?
Be wary of “total return” – concentrate on the AER
Often, the “total return” is highlighted for Irish State Savings products. This is a calculation which takes into account how much you would make over the course of, say, a ten year deposit, factored into the initial investment amount. However, it is stipulated in the Irish Consumer Protection Code of 2012 that the percentage AER must always be shown, as this is a much more meaningful figure.
For example, if you were to put €1,000 into a savings bond for ten years, you would get back €1,160. This €1,160 is a 16% increase from the original amount, but it is misleading as you might think based on the advertised 16% return that you would get 16% interest per year. However, this is in fact an AER (annual equivalent rate) of 1.5%, which you then earn 10 times (once per year).
The key figure to look at when selecting a savings bond is therefore the AER (annual equivalent rate). As of February 2024, the top AER offered by Ireland State Savings is 2.01% for a 10-year National Solidarity Bond. While this is not subject to DIRT, the interest rates are lower than similar fixed-term accounts in mainland Europe with shorter durations.
A selection of our top offers
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Raisin Bank: Greater flexibility with transparent rates
The minimum duration for an Ireland State Savings bond is three years, while our current minimum savings duration is just three months. Savers still benefit from the security of a guaranteed interest rate, but with a wider choice of savings terms to choose from than with Post Office savings bonds. Simply compare the offers in the table above and find your perfect match.
With Raisin Bank, you can open as many savings bonds with different banks as you like, and our handy online banking system enables you to keep track of all your savings in one place.
And it’s never been easier to save within Europe. Your savings are protected under the European deposit guarantee scheme (EDIS). This scheme protects up to €100,000 per person and per banking institution, anywhere in Europe. This amount of course includes any interest you make on your deposit.
How it works: All about Raisin Bank
It’s very easy, here’s how:
1. Open your Raisin Bank Account
Register online from your computer and access your client area to verify your identity and address. Once verified, we will open your Raisin Bank Account, free of charge. The Raisin Bank Account allows you to contract and manage all the products you want.
2. Choose the product that best suits you
Choose the products that best suit your needs, the amount to invest and send your application, all the process is done fully online.
3. Transfer the funds
Send the funds you want to invest to your Raisin Bank Account and we will take care of the rest.
At Raisin Bank we work with banks based in the European Union, which implies that they are members of their respective national Deposit Guarantee Scheme (DGS). This means that your savings are protected by the Deposit Guarantee Scheme of the country in which you are contracting the product, up to 100,000€ maximum, per depositor and bank.
Following European regulations, the Deposit Guarantee Schemes have been harmonised in order to offer the same standards within the EU in the event of bank insolvency.
No, the services offered by Raisin Bank are provided free of charge. This includes opening and maintaining your Raisin Account, managing your international bank transfers (in euros), confirming your balance, sending statements, as well as our Customer Service in English. The opening and maintaining of term deposit accounts with our partner banks are also provided free of charge.
Raisin Bank receives a commission from its partner banks for the savings intermediated. This income enables Raisin Bank to offer you their services completely free of charge.
One of the main advantages is that you can access deposits and savings accounts with a wider range of returns without having to change banks or open several accounts across banks, and thus you can benefit from more competitive rates offered in several European banks. This is a common practice for savers from other European countries, who are used to invest outside their home country to get more out of their savings.
There are several possible reasons for these differences:
- Banks’ liquidity needs. All banks need to have a solid liquidity base. One way to achieve this is by offering higher interest rates and thus raising sufficient funds.
- Liquidity diversification. It can be in a bank’s interest to capture liquidity from multiple different sources and countries. Ireland has one of the lowest average interest rates on deposits with maturities up to 1 year in the Eurozone, giving other European banks plenty of room to achieve this diversification at a good price.
- Banks’ business models. Unlike larger banks, whose growth has slowed down in recent years, other sectors, such as technology or e-commerce, have seen considerable dynamism. Specialised banks participating in this growth increasingly need the liquidity which is predominantly sitting in larger banks. The former’s margins allow them to compete by offering higher interest rates to attract this required liquidity.
- Banks’ current situations. A bank may require additional funds as a result of various possible situations, such as being in a period of growth or preparing to take on new projects.
- Industry competition. The larger the number of banks in a country, the greater the competition and, generally speaking, the higher the interest rates they pay on deposits. This way, they can attract a larger number of customers, thus ensuring a greater market share.
- Interest rate differential. There are also differences between the interest rates banks charge their customers when they take out loans or mortgages and what they pay for their deposits. Higher interest rates on mortgages and loans also make it possible to offer higher rates on deposits.
As a resident of Ireland, you will have to declare the interest earned on the deposits you sign up for through Raisin Bank when filing your income tax return.
Depending on the product’s country of origin, it is possible this country will apply a withholding tax to the interest generated. However, in most European countries, you will be able to claim back this withholding tax by sending us a certificate of tax residence in Ireland. For countries where the withholding tax cannot be claimed back, you will be able to compensate for the amount when filing your annual tax return in Ireland. You will therefore never be taxed twice on the interest earned through Raisin Bank’s products.
To find out more about how the products you take out with Raisin Bank are taxed, please consult our tax guide.
No. We would like to emphasize that at no point will Raisin.ie make recommendations concerning specific products or partner banks. We do not know your personal and individual asset position nor the investment goals you are pursuing, and therefore we are in no position to provide such advice. We appreciate your understanding in this regard.