Irish savers ‘missing out’ on up to €3.5bn in interest each year

Irish savers are failing to capitalise on increased interest rates for their savings, missing out on up to €3.5 billion in interest a year, according to Bonkers.ie.

The comparison website said Irish savers who are slow to move their cash to higher yield accounts are helping to boost banks’ record profits.

Rates of 4 per cent or more are available through certain financial institutions in the Republic and continental Europe, compared to the Irish average rate on current and demand deposit accounts of 0.12 per cent and the average rate here for fixed-term accounts of 2.59 per cent.

Central Bank data shows Irish households held more than €141 billion in those accounts in October, leading to savers missing out on billions in interest.

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PTSB offers a three-year fixed rate deposit account with 3 per cent interest, similar to AIB’s two-ear fixed term deposit account. A 10-year State Savings bond will give savers 2.01 per cent tax free.

Outside Ireland, savers can access rates of 4.25 per cent for a one-year fixed term account through Raisin.ie.

“For some reason, Irish people have been slow at moving their money into the best yielding savings accounts. Perhaps they don’t realise the rates that are now on offer, or perhaps they think they’re getting the higher rates already. Or maybe they think their bank is going to do it for them. Either way people are missing out and I’d encourage everyone to make it one of their New Year’s resolutions to check out the best savings accounts for their money,” said Daragh Cassidy of Bonkers.ie.

“There was huge uproar and media attention not so long ago over the poor savings rates on offer. Now that we have half-decent rates it’s kind of bizarre that so few people are availing of them.