Keep your savings up as the rates go down
May 6, 2025
Interest rates have been declining in recent months. This is good news if you are looking for a mortgage or a loan, but not if you have money in the bank.
Inflation has slowed, which means that prices aren’t increasing as quickly as before. But prices continue to go up, even if it’s less sharply than before. The only thing that everyone seems to agree on is that the outlook is uncertain.
When interest rates fall and inflation goes up, your money starts to lose some of its spending power. But there are some actions you can take to try to stay one step ahead and keep your savings growing.
Consider a fixed term deposit
If you have money that you don’t need to access in the short term, you should think about opening a fixed term account.
You can lodge a lump sum into a fixed term account, where it will be locked away gathering interest until the end of the term. Usually, the interest is paid out at the end of the term. But the rate that you are offered now is the rate that will be paid out, giving you protection against falling interest rates.
Of course, if rates increase in the meantime, you won’t benefit.
Use our money tools to compare lump sum deposits.
Shop around for better rates
If you prefer to have access to your savings, you might still benefit from shopping around.
If you are putting money away regularly, there are a variety of regular saver accounts to choose from.
We have all the rates for you to compare. Just enter how much you plan to save and see which financial institution comes out on top.
Check if you are DIRT exempt
Deposit Interest Retention Tax (DIRT) is deducted from the interest you earn in any Irish account.
If you are 65 or older, you can claim a DIRT exemption if your overall income is below €18,000 if you are single or widowed, or €36,000 if you are married.
You can read more about DIRT exemptions on the Revenue website.
Get financial advice
If you aren’t sure what type of investment is right for you, you should consider getting independent financial advice.
You can read advice on finding the right financial adviser.
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