What’s the difference between a high yield savings account and a traditional savings account?
One of the main differences between a high yield savings account and a traditional savings account is the rate of return you could get. Regular savings accounts often pay very little interest, particularly in the current economic climate, whereas, as you might imagine, high interest savings accounts tend to offer much higher returns.
However, in exchange for a better interest rate, many high yield savings accounts, such as fixed term deposits, require you to lock away your money for a set period. This is typically between one and five years, with lengthier terms often paying the highest rates.
Once you’ve made your initial deposit, you won’t normally be able to top up or withdraw your savings until the account matures at the agreed end date. Some fixed term deposit accounts may also require a minimum deposit.
As a result, high yield savings accounts generally aren’t as flexible as many traditional savings accounts, which allow you to access your savings whenever you like – but you will get more return on your investments.
FAQs
What's the Best Instant Access Saving Account Ireland 2024?
| Instant Access | APR | Principal |
|---|
| Average Rate Ireland | 0.11% | €10,000 |
| Bunq | 3.36% | €10,000 |
| AIB (Best Ireland Rate) | 0.25% | €10,000 |
| Bunq | 3.36% | €10,000 |
The Best Savings Accounts in Ireland
- Bunq. Best Flexible Mobile Banking. ...
- Raisin.ie. Comprehensive Savings Account. ...
- Lightyear. ...
- Ulster Bank — Special Interest Deposit Account. ...
- Ulster Bank — Home Saver. ...
- Bank of Ireland — GoalSaver. ...
- Ulster Bank — urFirst Account. ...
- Ireland State Savings — Instalment Savings.
Current rates effective 12 June 2024
- Deposit Facility: 3.75% The rate banks can use for overnight deposits with the Eurosystem.
- Fixed Rate Tender: 4.25% The rate that provides the bulk of liquidity to the banking system.
- Marginal Lending: 4.50% The rate that offers overnight credit to banks from the Eurosystem.
No fees and tax free savings product options
At State Savings we believe trust is built on transparency. Therefore there are no fees, hidden or otherwise. That includes no transaction charges when you lodge or withdraw your money. We offer attractive tax free savings products.
Where is the best place to invest money in Ireland? ›
What is the best thing to invest in in Ireland? Consider investing in stocks and shares for a better return on investment, as opposed to savings accounts, if you are willing to take a risk and have a long-term approach. This can provide higher potential returns.
What is a good amount of savings Ireland? ›
Saving 3 months' salary is a good starting goal to help cover life's unexpected expenses.
Where is the highest ROI in Ireland? ›
Rental yields in Dublin are considered some of the best Ireland offers. In Dublin 1, Dublin 3, Dublin 6W and Dublin 7 & 8, investors enjoy gross average rental yields between 6.19 – 7.96%. Smaller properties, such as one-bedroom apartments, often generate the best rental yields in the capital.
Where to deposit money in Ireland? ›
AIB and Bank of Ireland customers can lodge or withdraw money, pay your bills, and transfer money at any of our 900 post offices nationwide, six days a week. Thats right, your bank is in your post office.
How to save money in Ireland? ›
Aim to spend 50% of your pay on basic needs - such as bills, food, housing, and travel to work, then set aside 30% for having fun - eating out, drinking with friends, going to the cinema and days out. Put the final 20% towards savings, investing and your credit balances.
What is the 8 year tax rule in Ireland? ›
Tax on Investments: Exit Tax & CGT
This rate of 41% is chargeable on the profits on the sale of the fund or after 8 years, whichever comes first. Domestic Funds (such as those available on Insurance Company platforms) are obliged to deduct the 41% at source on behalf of the Investor(s) after 8 years.
The double Irish with a Dutch sandwich is a tax avoidance technique employed by certain large corporations. The scheme involves sending profits first through one Irish company, then to a Dutch company and finally to a second Irish company headquartered in a tax haven.
Is Ireland still a tax haven? ›
Ireland is currently one of the world's major tax haven economies. The Irish legal system allowed companies to pay their taxes overseas if their central decisions were made abroad.
Which bank has the best high yielding savings account? ›
Best High-Yield Savings Account Rates for September 2024
- Pibank – 5.50% APY.
- Poppy Bank – 5.50% APY.
- Western Alliance Bank – 5.31% APY.
- Forbright Bank – 5.30% APY.
- Vio Bank – 5.30% APY.
- BrioDirect – 5.30% APY.
- Ivy Bank – 5.30% APY.
- TotalBank – 5.26% APY.
AU Small Finance Bank offers interest up to 7 percent on savings accounts, Equitas Small Finance Bank offers 7% interest in saving account for balances above Rs 5 lakh and up to Rs 50 crores.
How to get compound interest in Ireland? ›
The formula for calculating compound interest for long-term comparisons looks complicated, but you really only need to remember how it works, as in the simplified example above. The compound interest formula is A = P(1 + R/N)^NT, where: A is the total Amount you'll earn at the end of your term.
Why does Ireland have such a high savings rate? ›
One factor at play may be the boost from Budget 2024,the tax cuts effective from January 1st worth 2% of disposable incomes close to the average wage. Elevated savings are also evident in the €1.8bn of bank deposits Irish households have accumulated in the first four months of 2024, rising to a fresh high of €154.5bn.
