If you’ve felt a pang of frustration comparing your Irish savings account interest to what friends in other European countries earn, you’re not alone. Irish bank deposit rates have consistently trailed the Eurozone average, but a closer look reveals competitive options if you know where to search — from high-rate fixed-term deposits to government-backed State Savings.
Average Irish savings rate (Mar 2023): 1.14% ·
Average Eurozone savings rate: 2.11% ·
Bank of Ireland 2-year fixed term deposit: 3.00% ·
Lump sum accounts on CCPC: 20+
| Key fact | Value | Source |
|---|---|---|
| Average savings rate in Ireland (Mar 2023) | 1.14% | Central Bank of Ireland (regulator) |
| Eurozone average savings rate | 2.11% | Central Bank of Ireland (regulator) |
| Bank of Ireland 2-year fixed term deposit | 3.00% AER | Bank of Ireland (Ireland’s largest retail bank) |
| Lump sum accounts compared by CCPC | 20+ | CCPC (state consumer protection body) |
| DIRT rate on bank interest | 33% | Revenue Commissioners (Irish tax authority) |
Quick snapshot
- Bank of Ireland offers 3.00% on 2-year fixed term deposit (Bank of Ireland (Ireland’s largest retail bank))
- Average savings rate in Ireland: 1.14% (March 2023) (Central Bank of Ireland (regulator))
- CCPC tool compares over 20 lump sum deposit accounts (CCPC (state consumer protection body))
- DIRT charged at 33% on interest earned (Revenue Commissioners (Irish tax authority))
- Future ECB rate changes and impact on Irish bank savings rates
- Whether promotional 6% rates will return to the Irish market
- Specific savings products for over-60s not widely published by banks
- Whether Irish banks will fully pass on future ECB rate cuts to savers
- Irish savings rates have been below Eurozone average for years, with 1.14% vs 2.11% gap in March 2023 (Central Bank of Ireland (regulator))
- Recent ECB rate hikes have led some Irish banks to slowly raise deposit rates in 2024-2025 (Central Bank of Ireland (regulator))
- ECB policy decisions will continue to influence Irish savings rates
- More consumers may turn to EU-based platforms like Raisin for higher returns
- State Savings products remain a stable but low-return alternative
What bank is paying the highest interest rate for savings?
Current top rates from Irish banks
Irish savers face a split market: domestic banks offer modest rates, while EU-linked platforms like Raisin push yields above 3% — but with different deposit guarantee arrangements.
For Irish savers chasing the best interest rate on savings Ireland provides, the highest standard rates currently come from fixed-term deposits. AIB (Ireland’s largest bank by assets) offers 4.55% AER on 2-year personal fixed-term deposits with a minimum of €5,000. Bank of Ireland offers 2.50% AER on 1-year fixed-term deposits for personal customers. PTSB (one of Ireland’s major retail banks) stands out with 6.13% AER on 3-year fixed-term deposits with a minimum of €5,000, and 2.98% AER on 18-month fixed-term deposits.
Beyond traditional banks, the Raisin platform (EU savings marketplace for Irish customers) offers up to 2.81% AER on 1-year deposits and up to 2.83% AER on 3-year deposits. Their wider product range includes rates up to 3.30% AER with terms from 1 month to 10 years.
How to interpret advertised rates vs. actual returns
Advertised rates rarely equal what lands in your pocket. Revenue Commissioners confirm that DIRT at 33% is deducted at source from bank interest. On a 4.55% AER rate, that means your effective return drops to roughly 3.05%. Additionally, fixed-term deposits lock your money away; early withdrawal typically incurs penalties of 60-90 days’ interest.
Comparison of demand deposit vs. fixed term rates
The gap between easy access and fixed-term rates reflects the trade-off between liquidity and yield for Irish savers.
| Account type | Typical rate range | Access | DIRT impact |
|---|---|---|---|
| Demand deposit / easy access | 0.01% – 1.00% | Instant | 33% deducted |
| 1-year fixed term deposit | 2.00% – 4.55% | Locked for 1 year | 33% deducted |
| 2-year fixed term deposit | 2.50% – 4.55% | Locked for 2 years | 33% deducted |
| 3-year fixed term deposit | 2.83% – 6.13% | Locked for 3 years | 33% deducted |
Five rates across four term lengths, one clear pattern: longer commitments from PTSB and AIB reward patience with higher headline rates, but DIRT and liquidity penalties narrow the real advantage over shorter terms.
PTSB’s eye-catching 6.13% 3-year fixed rate looks like a win on paper, but a saver locking in €5,000 must weigh early exit penalties against the risk of ECB cuts during the term.
The implication: fixed-term deposits beat demand accounts for rate-hungry savers, but never lock money you might need within the term.
Where to put a lump sum of money in Ireland?
Overview of lump sum options: fixed deposit, state savings, demand accounts
If you’ve got a lump sum to park — say from an inheritance, bonus, or maturing bond — three main paths exist. CCPC provides an independent comparison tool that lists over 20 lump sum deposit accounts. Fixed deposits with AIB and Bank of Ireland offer rates from 2.00% to 4.55%, while Money Guide Ireland (independent Irish personal finance site) notes that State Savings Certificates (18th issue) provide 1.74% tax-free returns, though with lower liquidity.
Key factors: access, term, interest rate, deposit protection
- Access: Demand accounts offer instant withdrawals; fixed deposits lock funds; State Savings has fixed terms of 3-10 years.
- Term: 1-year, 2-year, 3-year, 5-year, and 10-year options exist across bank and State Savings products.
- Interest rate: Bank fixed rates range 2-6.13% AER; State Savings returns are tax-free but lower at 1.74%.
- Deposit protection: Bank accounts covered up to €100,000 under the Deposit Guarantee Scheme; State Savings backed by Irish government guarantee.
Using the CCPC lump sum comparison tool
The CCPC’s comparison tool (state-run, non-commercial) is the most impartial resource. It filters by deposit amount and term, ranks accounts by AER, and includes all major Irish banks and credit unions. It does not cover State Savings products or EU-based platforms like Raisin, so you may need to cross-reference.
What this means: for a lump sum saver, the CCPC tool is the best starting point, but combining it with Raisin and State Savings checks gives the full picture.
Where can I get 6% on my savings in Ireland?
Are 6% rates available in Ireland?
As of mid-2025, no standard savings account in Ireland offers a 6% rate on demand deposits. However, PTSB offers 6.13% AER on 3-year fixed-term deposits with a minimum of €5,000. This is the closest you’ll get to a 6% return without taking investment risk. Historical promotional rates from some banks have reached near 6% for limited periods, but they were typically capped at small balances or short durations.
Why promotional rates often differ from standard rates
Banks use promotional rates to attract new customers or deposits during specific campaigns. These may be 2-3% above their standard rates but usually last 6-12 months and revert to a much lower variable rate. Central Bank of Ireland data shows that standard demand deposit rates remain below 1% at most Irish banks, making promotional windows the only chance at double-digit basis points.
Alternatives: investing vs. saving for higher returns
For returns above 6%, you typically need to accept investment risk. Stocks, investment funds, or bonds can yield more, but principal is not guaranteed. Savings accounts in Ireland offer capital protection up to €100,000 via the Deposit Guarantee Scheme. Money Guide Ireland cautions that chasing high rates through non-deposit products may expose your lump sum to market volatility.
The catch: 6% on savings exists in Ireland today only through PTSB’s 3-year fixed term — a specific, time-limited product with a penalty for early exit.
What are the best fixed term deposit rates in Ireland?
Current fixed term deposit rates from major banks
Four leading providers shape the current landscape. AIB leads with 4.55% AER on 2-year fixed deposits. PTSB offers 6.13% on 3-year, 2.98% on 18-month, and 2% on standard fixed deposits. Bank of Ireland offers 2.50% on 1-year fixed and 3.00% on 2-year fixed. Raisin provides fixed rates up to 2.83% AER on 3-year deposits through partner banks.
Comparison: 1-year vs. 2-year vs. 5-year terms
Each term length targets a different savings horizon, with the best rates concentrated at the 2- and 3-year marks.
| Term | Best rate available | Provider | Minimum deposit |
|---|---|---|---|
| 1-year fixed | 2.50% AER | Bank of Ireland | €5,000 |
| 2-year fixed | 4.55% AER | AIB | €5,000 |
| 3-year fixed | 6.13% AER | PTSB | €5,000 |
| 5-year fixed | Up to 3.30% AER | Raisin | €1,000 |
Four terms, four distinct rate peaks: the longer you commit, the higher the headline rate — but PTSB’s 3-year offer is an outlier worth scrutinising for early exit terms.
How to choose the right term for your savings goals
If you expect to need the money within 12 months, stick to demand accounts. For a lump sum you won’t touch for 2-3 years, AIB’s 4.55% or PTSB’s 6.13% are compelling. Money Guide Ireland also highlights options via Raisin from Achmea Bank at 2.91% AER and Aareal Bank at 2.9% AER, both with minimums of €1,000-€5,000 — useful for smaller lump sums.
Why this matters: a 2-year fix at AIB currently beats most other Irish savings options, but only if you can spare the deposit for the full term without needing emergency access.
How do Irish bank savings rates compare to State Savings?
State Savings products: Prize Bonds, Savings Bonds, National Solidarity Bonds
State Savings (Irish government-backed savings schemes) offer three main products. Prize Bonds have no guaranteed interest but monthly cash prizes. Savings Certificates (18th issue) provide a fixed 1.74% tax-free return over 3 years. National Solidarity Bonds offer tiered returns over 10 years. All State Savings products are guaranteed by the Irish government.
Bank deposit rates vs. State Savings returns
The trade-off is clear: bank fixed deposits offer higher headline rates (up to 6.13% AER) but incur 33% DIRT tax. State Savings returns are tax-free, but rates are lower. A 1.74% tax-free return from Savings Certificates is equivalent to roughly 2.60% gross from a bank deposit for a standard-rate taxpayer. Bank deposits offer better gross returns for those willing to pay DIRT.
Tax implications: DIRT on bank interest vs. tax-free State Savings prizes
Revenue Commissioners confirms DIRT is deducted at 33% on all bank deposit interest. State Savings interest and prizes are exempt from DIRT and income tax. Prize Bonds winnings are also tax-free. For higher-rate taxpayers, this makes the after-tax comparison tilt further toward State Savings, despite lower headline returns. If you are looking for ways to Claim Tax Back Ireland, this tax treatment difference matters for your overall savings strategy.
The highest headline savings rate in Ireland — PTSB’s 6.13% — loses its shine after DIRT, netting around 4.11%. That still beats State Savings’ 1.74% tax-free, but the latter offers zero administrative hassle and government guarantee.
The pattern: for tax-savvy savers, State Savings wins on simplicity and net return for standard-term deposits under 3 years; for aggressive rate chasers, fixed-term bank deposits still lead after DIRT.
Summary
Irish savings rates lag the Eurozone average, but targeted products from AIB, PTSB, and Bank of Ireland plus the Raisin platform give savers real options above 3% AER. The best interest rate on savings Ireland offers today sits with PTSB’s 6.13% 3-year fixed deposit — but that return is taxable and requires a 3-year commitment. State Savings provide tax-free stability at lower rates. For the Irish saver with a lump sum, the choice is clear: lock in a fixed-term bank deposit for maximum return, or accept lower tax-free yields from State Savings for peace of mind — but never leave cash earning under 1% in a demand account.
ccpc.ie, bonkers.ie, ebs.ie, personalbanking.bankofireland.com
Frequently asked questions
What is the minimum deposit to open a savings account in Ireland?
Minimum deposits vary by product. AIB and Bank of Ireland require at least €5,000 for fixed-term deposits. Raisin accepts deposits from €1,000. Demand accounts often have no minimum or as low as €100.
Are savings in Irish banks guaranteed?
Yes. The Deposit Guarantee Scheme protects deposits up to €100,000 per person per institution. State Savings products are guaranteed by the Irish government with no cap.
How is interest on savings taxed in Ireland?
DIRT (Deposit Interest Retention Tax) is deducted at source at 33%. Banks deduct it automatically. Interest from State Savings is tax-free.
What happens if I withdraw from a fixed term deposit early?
You’ll typically lose some interest — often 60-90 days’ worth — as a penalty. Some banks may also apply a lower rate. Check terms before locking funds.
Can I hold multiple savings accounts with different banks?
Yes. There is no limit on how many savings accounts you can hold across different institutions in Ireland. Each is separately covered by the €100,000 deposit guarantee. For utility-related queries, you can also check Yuno Energy Contact Number for energy saving tips that complement your financial planning.
How often do banks change their savings interest rates?
Banks can change rates at any time. Fixed-term deposit rates are locked for the term, but demand account rates may change with little notice, especially after ECB policy shifts.
What is the best savings account for a child in Ireland?
Most Irish banks offer children’s savings accounts with low or zero minimum deposits. Rates are typically below 1%. Credit unions and State Savings may offer better alternatives for long-term child savings.









