Comparing savings accounts is easy with bonkers.ie. Just use our savings account comparison service to quickly compare the different account features and interest rates from all of Ireland’s providers and find the best return for your savings in seconds.
This will depend on what you’re saving for and how much you earn. As a general rule, financial experts recommend saving up to 20% of your net income each month, though this won’t be feasible for everyone. It often helps to have a savings goal or financial plan so that you have something to aim for.
Before you start saving, it’s also useful to pay off any outstanding loans or debt that you owe first. This is because the interest you’re charged on your debt will usually be far higher than any interest you’d earn on your savings. Paying extra off your debt also means you’ll clear off your debts faster.
The best savings account for you will depend on several factors such as how much money you want to save each month, whether you have a lump sum to put on deposit, or whether you want to have instant access to your savings if required. Use our handy savings account comparison service to compare the different accounts from all of Ireland’s providers to find the one that’s right for you.
The interest you earn on your savings is subject to deposit interest retention tax or DIRT. The rate is currently 37%. It was announced in Budget 2017 that the DIRT rate would decrease by 2% each year from 2018 to 2020 until it reaches 33%.
The tax will be deducted by your savings account provider before the interest is paid to you. In certain circumstances, people might be exempt from paying DIRT.
A fixed-interest savings account is an account where the rate of interest on your savings will be fixed for a predetermined amount of time and will not rise or fall during that period.
Fixed rates offer certainty, meaning that you’ll know exactly how much interest you’ll earn on your lump sum over a fixed term. Access to your savings is usually restricted on fixed savings accounts.
A variable-interest savings account is an account where the rate of interest on your savings can rise or fall. The rate usually fluctuates in accordance with the European Central Bank’s (ECB) rate, but is ultimately at the discretion of your bank.
Variable rates are unpredictable and mean that you could benefit from rising rates, but equally could be at a disadvantage should they fall.