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The Investment Account is a new Government initiative that aims to make investing simpler for eligible adults in Ireland.

Main features

• Available to Irish tax-resident adults with a PPSN
• One account per person
• A tax-free threshold of €50,000 applies
• If the average value of your account is above the threshold, a flat rate of 1% tax will apply to the amount above that
• No deemed disposal
• No minimum contribution or holding period
• There will be a €12,000 limit on the amount you can contribute annually
• Access to eligible investments such as listed shares, bonds and certain investment funds

The Government plans for providers to begin offering the new investment accounts from 1 July 2027. High risk investments like derivatives and crypto assets will not be eligible.

While both are Government initiatives, the Investment Account will work very differently from the Special Savings Incentive Account (SSIA) of 2001/2002.

The new Investment Account is not a Government savings scheme. The new Investment Account will allow you to hold a range of investments in one place but:

• Will have no Government contribution
• Returns will not be guaranteed

As with all investments, values can rise or fall, and you could get back less than you invest.

The main difference between saving and investing is risk, access and potential return.

Savings are generally low risk and easy to access. Your money is protected up to €100,000 per person by authorised financial institutions under the Deposit Guarantee Scheme (DGS), but returns are typically lower. The interest you earn can be fixed or variable but is guaranteed.

Investing means putting money into assets such as shares, bonds, funds or property with the aim of growing your money over the longer term. Investments can increase in value or generate income, but their value can also fall. Investment returns are not guaranteed.

The best savings account for you depends on your savings goals and how you want to access your money.

• When comparing accounts you should consider:
• The interest rate (AER)
• How easily you can withdraw your savings
• The length of time for savings 
• Taxes, any fees or specific conditions
  

Comparing different providers and reviewing the terms can help you choose an account that suits your needs.

The Deposit Guarantee Scheme (DGS) protects savings held in banks, building societies or credit unions authorised by the Central Bank of Ireland are protected. The scheme protects:

• Savings at authorised banks, building societies, and credit unions
• Eligible deposits up to €100,000 per person per institution
• Current accounts, deposit accounts and share accounts

If you are saving with a financial institution outside of Ireland but in the EU make sure to check that your savings are protected by their own deposit guarantee scheme. For more information visit Saving in other EU countries.

Investments held within the Investment Account will not be subject to existing investment tax regimes, including deemed disposal. Instead, a tax-free threshold will apply.

The new Investment Account will have a simplified tax structure. A tax-free threshold of €50,000 will apply. If the average value of your account is below the tax-free threshold during the relevant tax period, you will not pay tax on the account. If the average value is above the threshold, a flat rate of 1% tax will apply to the amount above it.

Yes. The tax you pay depends on the type of savings or investment product you have.

Savings

• Interest earned on savings in Ireland is generally subject to Deposit Interest Retention Tax (DIRT) at 33%.
• DIRT is usually deducted automatically by the financial institution.
• If you earn interest from a bank in another EU Member State, you must declare that interest to Revenue.

Investments

The tax you pay on investments will depend on the type of product you invest in. Tax on investments can be complex but, investments are typically subject to one or more of the following:

• Capital Gains Tax (CGT) at 31%
• Income Tax at 20% or 40%
• Exit tax at 38% on certain investment funds

Some investment funds are also subject to the deemed disposal rule, which can trigger tax at 38% on any gains every eight years, even if the investment has not been sold.

The Government has announced a new Investment Account to make investing simpler and more accessible for people in Ireland. It will have a simplified tax structure. A tax-free threshold of €50,000 will apply. If the value of your account is below the tax-free threshold during the relevant tax period, you will not pay tax on the account. If the average value of your account is above the threshold, a flat rate of 1% tax will apply to the amount above it.

The Government plans for providers to begin offering the new investment accounts from 1 July 2027.

Fees and charges

Investment fees and charges can reduce your returns, so it is important to consider them alongside any tax you may pay. Some fees and charges may include:

• One-off charges: Usually a percentage of the amount you invest.
  • Ongoing charges: Regular fees for managing and administering the fund
  • Fund management/administration charges: Annual fees for record-keeping, fund valuation & ongoing advice.
• Performance fees: Charged if the investment makes a profit, usually as a percentage of the profit.
• Commission:  Payment to a financial adviser from the business on whose behalf they sell products.

Learn more about how much financial advice can cost.

If you are risk adverse, you should consider depositing your money in institutions covered by the Deposit Guarantee Scheme.

Amounts up to €100,000 are covered per institution. If you have more than €100,000 you should consider depositing across multiple providers in Ireland or the EU as they are all covered by their own deposit guarantee scheme to ensure all of your funds are covered.

A fixed-term savings account usually means your money is locked away for a set period. In some cases, providers may allow access to some of the savings during that period. Fixed-term accounts often require a minimum deposit and typically offer higher interest rates because access to your savings is restricted.

An easy access (or demand deposit) account allows you to lodge and withdraw savings at any time, usually without penalty. Interest rates on easy access accounts are generally lower; due to the flexibility they offer.