Irish savers missing out on up to €3.5 billion in interest a year
Daragh Cassidy
Head Writer

By being slow to move their money into higher yielding accounts, our research shows Irish savers are collectively missing out on billions of euro in interest a year.

At the moment Irish households have a staggering €153 billion on deposit. 

However most of this money is earning little to no interest as the vast majority of it hasn't been moved into accounts that are paying the best rates.

According to the European Central Bank for October, the average interest rate on a savings account with a fixed maturity in Ireland, or an account where savings are locked away for a specified time, is now 2.59%.

​​While this is the sixth lowest in the Eurozone, the rate has risen steadily in recent months. And rates of up to 3% are now easily available from the likes of PTSB and AIB.  

However the interest rate on so-called overnight deposit accounts, which includes current accounts and demand deposit accounts where people have almost instant access to their money, is much lower at just 0.12%. And according to the Central Bank, Irish households had just over €141 billion in these accounts in October. 

This means Irish savers are collectively missing out on up to almost €3.5 billion in interest a year.

In recent weeks both the Central Bank and AIB have commented that Irish savers have been slow at moving their money into higher-yielding savings accounts with many leaving their money in accounts which pay little or no interest.

Indeed, this is one of the reasons why Irish banks are making record profits rights now! 

So what rates are on offer and what should savers be doing?

The best savings rates in Ireland

The rates on offer to savers in Ireland have improved steadily in recent months. 

Fixed-term rates of up to 3% are now available from the main Irish banks and rates of 4% and above are available from other providers such as Raisin and Trade Republic.

However if you haven't done anything with your savings in recent months or proactively sought out the best rate, the return you're getting is likely to be much lower, at around 0.12%.

And the difference is huge. 

If you had €20,000 in savings you’d get almost €1,900 in interest before tax if you put it into PTSB’s three-year fixed account that pays 3% AER. And you would get almost €2,500 in interest if you saved through Raisin and got 4% AER. 

By contrast, if you kept your money in an easy-access demand deposit account or current account, and were getting the average rate of 0.12%, you’d get only around €72 in interest before tax after the three years.

It’s a huge difference. 

Here are some of the best lump sum savings accounts available right now. 


Account description   

Savings rate 


1-Year Fixed Term Account (Banco Português De Gestão)



3-Year Fixed Term Account (Banco Português De Gestão)


Trade Republic

Amounts up to €50,000


Permanent TSB

3-Year Fixed Rate Deposit Account (min deposit amount €5,000 - no max limit)



2-Year Fixed Term Deposit (min deposit amount €15,000)


Permanent TSB

18-Month Fixed Rate Deposit Account (min deposit amount €5,000 - no max limit)


State Savings

10-Year National Solidarity Bond


Bank of Ireland

365 12-Month Fixed Term Deposit (min deposit amount €5,000)


 *tax-free returns.

Why aren't savers moving their money?

Well, that's a good question. 

Perhaps savers don’t realise the better rates that are now on offer. Or perhaps they think they’re getting the higher rates already. Or maybe they think their bank is going to do it for them.

Either way people are missing out and would encourage everyone to make it one of their New Year’s resolutions to check out the best savings accounts for their money as your bank isn't going to do it for you.

There was huge uproar and media attention earlier in the year over the poor savings rates on offer. So now that we have half-decent rates, it’s kind of bizarre that so few people are availing of them.

Get advice before moving your money

Before signing up to a new savings account, make sure you check out the terms and conditions.

While the best rates are usually reserved for those who are happy to lock their money away for a specified time, between one and five years usually, this may not be suitable for you if you think you'll need access to your money.    

And in most cases you'll pay DIRT at 33% on any gains that you make. 

And if you save with a European bank through Raisin, there may be extra paperwork involved to make sure you're not taxed twice.

But one thing you shouldn't do is leave money lying around where it's earning you little to no interest. However the good news is that you can easily compare the best interest rates from all the main providers in Ireland on

You might also like this article which discusses various different options for your money.