If you have cash sitting in a current account or a low-interest savings account, you are almost certainly leaving money on the table. That might sound blunt, but the numbers back it up. Irish households hold approximately €140 billion in savings, and a significant portion of that is sitting in instant-access or overnight accounts earning little or nothing. As we discussed recently, inflation is the biggest and nastiest theif we know!

In a world where you can now access demand deposit rates of over 2% and fixed-term rates approaching 3%, that inertia is genuinely costly.

This piece is designed to cut through the noise, point you towards some genuinely useful tools, and help you understand what the current landscape actually looks like. I've also included some of the nuances around newer platforms like Raisin that are worth knowing before you jump in.

Where Do You Even Start?....The CCPC Comparison Tool

The best starting point for any Irish saver looking to compare lump sum deposit accounts is, I believe, the Competition and Consumer Protection Commission's free comparison tool. The CCPC lump sum deposit account comparison tool lets you enter how much you want to save or deposit, and compare what different providers are offering across fixed-terms and demand accounts. It is independently run, 'for the people' and straightforward to use. It now covers the main domestic and a growing number of international options available to Irish residents.

What makes it particularly trustworthy is that it carries no commercial agenda. Unlike comparison sites that earn referral fees, the CCPC is a statutory body. That does not mean it captures every provider in the market, but it is an excellent, neutral starting point.

What Are Rates Actually Looking Like in 2026?

On 5 February 2026, the ECB kept interest rates unchanged, leaving the deposit facility rate at 2.00%.

That is important context because deposit rates across Europe tend to track the ECB's direction, even if Irish domestic banks have historically been slow to pass on movements, particularly in the upward direction!

For Irish savers, the current landscape looks roughly like this.

- Raisin's (to pick one foreign bank platform as an example) demand deposit accounts offer up to 2.07% AER with immediate access

- Fixed-term options range from 2.47% AER over one year up to 2.85% AER over five years, with some longer-term accounts offering rates approaching 3%.

- Domestic Irish banks typically sit meaningfully below these figures for instant-access products, though some fixed-term options have become more competitive in recent months.

State Savings products available through An Post and backed by the Irish government remain an option for those who value simplicity and an absolute government guarantee. Some also look to individual Irish Government Bonds for set duration fixed term sums. Crucially, State Savings and some Bonds are exempt from DIRT, which makes a real difference to the after-tax comparison and is worth factoring in when you are running the numbers.

Understanding DIRT and What It Means for Your Returns

DIRT is charged at 33% on all interest payments. It is deducted before the interest is paid to you, and you are entitled to get a statement of the DIRT deducted if you ask for it.

If you earn €1,000 in gross interest, €330 goes straight to Revenue and you receive €670. It is a meaningful haircut, and one that makes the after-tax comparison between State Savings and Bonds (DIRT-exempt) and taxable deposit accounts closer than the headline rates might suggest.

One thing worth flagging here: if you are over 65 and your total income is below €18,000 as a single person, you may qualify for a full DIRT exemption. For married couples and civil partners, only one person needs to be over 65, and the combined income threshold is €36,000. This is one of the most consistently overlooked tax reliefs in Ireland and can make a significant difference if you have meaningful savings alongside a modest retirement income. If you receive only the State Pension as income, you likely will be eligible.

Understanding Raisin & Similar: What It Is and What It Isn't

Raisin has become increasingly prominent in the Irish savings conversation over the past few years, and it is worth explaining exactly how it works. Particularly because the headline figures can occasionally be a little misleading if you don't read the small print.

Raisin is not a bank itself. Raisin Bank holds a full banking licence under the German Banking Act, is authorised in Germany, and is regulated by the Central Bank of Ireland for conduct of business rules. On its deposit marketplace, Irish savers can choose from around 90 savings accounts from different European banks. You register once, complete a video ID verification, and then select from a range of fixed-term, instant access and demand deposit accounts offered by partner banks across France, Germany, Sweden, the Netherlands, Latvia, and elsewhere.

There are apparently no fees to customers at any point. The interest rate you see advertised is the interest rate you get, and those rates are set by the banks, not by Raisin. The platform earns its revenue by charging banks a fee to be listed, not by taking a cut of your interest.

The 3% Headline Versus the 2.07% Reality

This is where it pays to read carefully. Raisin's demand deposit accounts, where you can deposit and withdraw money at any time, currently offer up to 2.07% AER variable. Fixed-term deposit accounts, where your money is committed for a set period, can offer higher rates as noted earlier.

Banks will often offer a higher interest rate for a fixed-term deposit than for a demand deposit savings account. Generally speaking, the longer the duration, the higher the rate because banks know they are guaranteed to have your money for a set period of time.

So when you see the 3.00% demand deposit rate associated with Raisin, that refers to a 3-month account for new customers only. The actual demand deposit rate currently sits around 2.07% AER. That is still genuinely competitive relative to most Irish domestic banks, but it is not 3%, and the distinction matters enormously depending on whether you actually need access to the funds.

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Why Can/Do European Banks Offer Higher Rates?

The short answer is competition, or lack thereof! Irish banks have been able to retain very low-cost deposits because of limited domestic competition and significant customer inertia/laziness on our part. Lets stop beating around the bush, we've been lazy and let them get away with offering us pittance! Almost 90% of deposits are said to be in overnight or current accounts, compared with 55% in the euro area, costing Irish households an estimated €800 million in lost interest.

Banks need deposits to allow them to lend to consumers via loans, on which there are greater profit margins. It's a numbers game. European banks on Raisin's platform are competing for deposits from savers across multiple countries. That competitive dynamic creates pressure to offer more attractive rates to win business. Raisin essentially brings that competition to your door without you having to travel or open foreign accounts directly.

A Few Practical Considerations

The deposit guarantee on Raisin accounts is provided by the national scheme of the country where each partner bank is headquartered, not the Irish scheme (www.depositguarantee.ie). Since the EU Directive in 2014, deposits are protected up to €100,000 per depositor and bank. This protection is offered across all EU member states.

In practical terms, the protection level is identical to what you get with an Irish bank but the scheme paying out in the event of a failure would be a German, Swedish, French or other scheme rather than the Central Bank of Ireland's. For most savers this is a distinction without a meaningful difference, but it is worth understanding.

On tax, Irish residents are required to declare interest earned on deposit accounts with European banks. While no DIRT is withheld at source by the foreign bank, you must include interest when filing your annual tax return. This is important, and probably missed by many. If you are a PAYE worker, you use myAccount to declare it under foreign income. Self-assessed taxpayers include it on Form 11. If you fail to declare on time, Revenue may apply a rate of 40% rather than the standard 33%, so the administrative step is important.

It is also worth noting that Raisin seemingly doesn't support joint accounts, which means couples will need to open individual accounts if they both want to participate.

For a broader understanding of how cash and savings fit within your overall retirement income picture, our piece on tax-efficient retirement income planning in Ireland is hopefully worth reading!

How Much Does It Actually Matter?

Let's put real numbers on it, because percentages can feel abstract. Take €100,000 sitting in a standard instant-access Irish bank account earning 0.25% AER. After one year, you have earned €250 in gross interest. After DIRT at 33%, you keep say €167.

The same €100,000 in a one-year fixed-term deposit at 2.47% AER earns €2,470 gross. After DIRT, you keep €1,655. That is nearly ten times more for the same money over the same period. Even at the demand deposit rate of 2.07%, you are looking at approximately €1,387 after DIRT, which is eight times the return of staying put.

Not everyone can lock money away for a year or more. Life doesn't always allow for it. But if you have a meaningful lump sum, particularly cash held outside a pension structure or investment, it is worth spending thirty minutes understanding what you could be earning rather than defaulting to the path of least resistance!

If you are already in retirement and drawing income from an ARF, the interaction between deposit interest, your overall income, and your marginal tax rate is worth thinking through carefully. You can read more about managing your ARF income tax-efficiently in retirement to see how different income sources sit alongside each other.

A Few Practical Steps

Start with the CCPC lump sum deposit comparison tool to get a clear overview of what is available from Irish bank and from foreign ones.

If a portion of your cash genuinely doesn't need to be accessed for a year or more, the fixed-term rates are where the more meaningful difference may lie for you.

Check your DIRT position. If you are over 65 with a lower income, you may be paying a tax you are not required to pay. And if you are using a European platform, make sure you are declaring the interest correctly. It is straightforward but requires attention.

Finally, keep in mind that rates are moving. With the ECB at 2.00% and further cuts and/or increases possible as 2026 progresses!! Who knows what direction the rates will go. If the conflicts and supply issues persist in the East, and fuel prices keep going up, inflation will increase and central bank rates may go up. If that happens, the rates of interest here will increase, or should! But who knows. Do what is right for you based on what you know your needs are today.

The rates available today may not be better or worst that this time next year. Don't let that stop you doing something productive. If you have been meaning to do something about your savings, now is a reasonable time to act on it.

I hope this helps.

Paddy Delaney QFA RPA APA

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