Savings bonds to suit your needs
Take advantage of high interest rates for fixed-term bonds
Deposit guarantee scheme
Up to €100,000 per person per bank is protected
Free savings bonds with no hidden costs
Keep track at a glance
Manage your savings entirely online
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 overnight or easy-access accounts, as they know in advance how long they’ll have your money.
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.
Under Ireland State Savings, 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 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.
What’s the catch?
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.
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.
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 €1000 into a savings bond for ten years, you would get back €1160. This €1160 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). Currently, the top AER offered by Ireland State Savings is 1.5% for a 10-year National Solidarity Bond. While the products are 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
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. 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
Yes. Please bear in mind that we do not send any information documents by post. All information is available at www.raisin.ie. Your product selections need to be made online. You will then receive the contractual documents to print out and sign – if required.
At Raisin.ie, you can choose attractive deposit offers from European banks – online and from the comfort of your home. This is how it works:
- Open a Raisin Account with Raisin Bank via www.raisin.ie. To successfully open the account please complete the registration process online. Additionally, we will ask you to provide a copy of your Passport and complete the Videoident process. You will then receive your personal login details by post and will be able to transfer funds to your Raisin Account.
- You will then be able to choose a deposit product from one of our partner banks in Raisin.ie’s Online Banking System and submit the required documents. The opening of the deposit account as well as the transfer of funds to the partner bank occurs automatically. All important documents will be posted to your electronic mailbox in the Online Banking System.
- At the end of the agreed term, the partner bank will transfer the funds including accrued interest (less withholding tax) back to your Raisin Account unless you choose to prolong your term deposit, which you can easily arrange in the Raisin.ie Online Banking System. Please note that you will only be able to prolong your term deposit.
Please note that it usually takes around 5 business days to open the term deposit account after we have received the necessary documents along with the funds.
The security of your data is of paramount importance to us. Therefore, we strive to use the latest security standards and technology to ensure you feel protected. Our firewall prevents unauthorized external access to your data in our system and our multi-step encryption and identification system ensures that unauthorized persons can neither intercept your data nor make it readable.
If you are a resident of Ireland and are at least 18 years of age and acting on your own behalf, we will be able to open a Raisin Account for you as a single account.
In addition, it is necessary that you accept the Terms & Conditions of Raisin Bank.
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.
Raisin Bank AG receives a commission from the partner banks. These commissions enable Raisin Bank to provide their services free of charge to you while continuously improving the quality of these services. We are not able to disclose details about these commissions.
The reference account, the bank account you specified during registration, is your normal current account (such as your salary account) held at a bank in your home country. This reference account is the only account that you can use in combination with your Raisin Account (both for incoming and outgoing payments). Transfers made from other accounts than the reference account will be rejected and automatically after 30 days send back to the originating account.
The Raisin Account is a current account accruing no interest at Raisin Bank, serving as your central online transaction account. When you select a deposit we will debit your Raisin Account and credit the respective amount to your Deposit Account.
Deposit Accounts are accounts which accrue interest held with one of our partner banks. For each deposit product you choose, a new Deposit Account is opened with the respective partner bank. After creating the Deposit Account, the amount you wish to deposit will automatically be transferred from your Raisin Account. At maturity, you then have three options: you may either prolong the deposit, select an alternative deposit product, or the money will be automatically transferred back to your Raisin Account. Please note, that if you take no action, upon maturity, the amount deposited including interest (less withholding taxes if applicable) will be returned to your Raisin Account. There is no automatic rollover.