Money glossary

49 money words you'll meet in Ireland, in plain English.

A

AER: Annual equivalent rate: what a savings account really pays in a year, including interest on your interest. Compare savings accounts by AER.; Read: Irish banking basics: current accounts, savings and DIRT
Annuity: A product you buy with your savings, usually at retirement, that pays you an income for life or for a set time.
APR: Annual percentage rate: the yearly cost of borrowing, including the interest and, for most loans, the main fees. The fairest way to compare loans and cards.
Auto-enrolment: My Future Fund: Ireland’s new workplace pension scheme. Employees without a pension are signed up automatically, and their employer and the State pay in too.; Read: Auto-enrolment explained: My Future Fund (2026)

B

Bond: A loan you make to a government or company, which pays you interest and gives your money back at the end. Usually steadier than shares, with lower long-run returns.; Read: Investing basics in Ireland: pensions, funds and tax
Budget: A plan for your money: what comes in, what has to go out, and what’s left to save or spend.; Read: How to make a budget in Ireland (the 50/30/20 rule)
Buy now, pay later (BNPL): Splitting a purchase into instalments, often 4 payments over 6 weeks, usually with no interest if you pay on time. Missed payments can bring fees and harm your credit.; Read: Buy now, pay later in Ireland: costs, credit and the rules

C

Capital gain: The profit when you sell something, such as shares or a property, for more than you paid. It may be taxed.; Read: Irish capital gains tax: the 33% rate and €1,270 exemption
Central bank: For Ireland, the European Central Bank. It sets the interest rates for the euro area, raising them to slow inflation and cutting them to support the economy.; Read: Inflation and interest rates in Ireland, explained
Central Credit Register: The Central Bank of Ireland’s record of loans of €500 or more. Lenders must check it before lending, and you can ask for your own report for free.; Read: Credit scores in Ireland and the Central Credit Register
Compound interest: Interest on your interest as well as on the money you put in. Over many years it makes savings grow faster, and unpaid debts too.; Read: Inflation and interest rates in Ireland, explained
Credit report: The record of your loans, cards and repayments that lenders check before lending. You can see your own report for free.; Read: Credit scores in Ireland and the Central Credit Register
Credit score: Irish lenders don’t use a single credit score. They look at your credit report from the Central Credit Register, plus your income and bank statements.; Read: Credit scores in Ireland and the Central Credit Register

D

Debt avalanche: Paying off debts with the highest interest rate first, while making the minimum payments on the rest. It costs the least in interest.; Read: How to pay off debt in Ireland: avalanche or snowball?
Debt snowball: Paying off your smallest debts first, while making the minimum payments on the rest. Quick wins keep you going, though it can cost more in interest.; Read: How to pay off debt in Ireland: avalanche or snowball?
Debt-to-income ratio: Your debts, or your monthly debt payments, compared with your income. Lenders use it to judge how much more you can afford to borrow.
Deemed disposal: The rule that taxes funds and ETFs every 8 years as if you’d sold them, even if you haven’t.; Read: Where to invest in Ireland: pension, funds or shares?
Deposit Guarantee Scheme: Protection for money in Irish banks, building societies and credit unions: if one fails, deposits are paid back up to a limit per person, per institution.; Read: Irish banking basics: current accounts, savings and DIRT
Diversification: Spreading your money across many investments, so one doing badly doesn’t sink the lot.; Read: Investing basics in Ireland: pensions, funds and tax
Dividend: A share of a company’s profit, paid to the people who own its shares.; Read: Investing basics in Ireland: pensions, funds and tax

E

Effective tax rate: Your total tax as a share of your total income. It’s lower than your top rate, because the lower slices of your income are taxed less.
Emergency fund: Money set aside for surprises, such as losing your job or a big repair, so you don’t have to borrow. A common goal is three to six months of essential spending.; Read: Emergency fund in Ireland: how much and where to keep it
Emergency tax: Extra tax taken from your pay when your employer doesn’t have your tax details yet. You get it back once they do.; Read: Tax credits and emergency tax explained (2026)
ETF: Exchange-traded fund: a fund you buy and sell on the stock market like a share. Many ETFs are low-cost index funds.; Read: Investing basics in Ireland: pensions, funds and tax
Exit tax: The tax on gains and income from Irish and EU funds and ETFs, charged instead of capital gains tax, and every 8 years even if you don’t sell.; Read: Where to invest in Ireland: pension, funds or shares?

F

Fixed rate: An interest rate that stays the same for a set time, so your payments don’t change.
Fund fees: The yearly charge a fund takes, as a percentage of what you have in it. Small differences add up to a lot over decades.; Read: Investing basics in Ireland: pensions, funds and tax

G

Gross pay: Your pay before tax and anything else is taken off.

H

Home equity: The part of your home you own outright: its value minus what you still owe on it.
House deposit: The part of a home’s price you pay upfront. The rest is borrowed with a mortgage.

I

Identity theft: When someone uses your personal details to borrow money, open accounts or claim refunds in your name.; Read: How to spot and report money scams in Ireland
Index fund: A fund that buys every company in a market index, such as a country’s biggest companies, instead of picking a few. It spreads your risk and usually has low fees.; Read: Index funds vs picking stocks in Ireland: why go passive
Inflation: The rise in prices over time. With inflation at 3%, what cost 100 a year ago costs 103 now, so the same money buys a little less.; Read: Inflation and interest rates in Ireland, explained
Interest rate: The price of borrowing money, or the reward for saving it, as a percentage of the amount each year.; Read: Inflation and interest rates in Ireland, explained

L

Loan-to-value (LTV): Your mortgage as a share of the home’s value. A lower LTV, from a bigger deposit, usually gets a lower interest rate.

M

Marginal tax rate: The tax rate on the next bit of income you earn: your top bracket’s rate. It’s what matters when you get a raise or a bonus.
Minimum payment: The smallest amount you must pay on a credit card each month. Paying only this keeps you in debt for years and costs a lot in interest.

N

Net worth: Everything you own (savings, investments, your home) minus everything you owe (mortgage, loans, cards).

O

Overdraft: Spending more than you have in your bank account. The bank covers the gap, usually for a fee or a high rate of interest.; Read: Irish banking basics: current accounts, savings and DIRT

P

PAYE: Pay As You Earn: income tax taken from your pay by your employer before you’re paid.
Pension: Savings for retirement with tax relief on what you pay in. Workplace pensions get money from your employer too.; Read: How much should I save into a pension?
Phishing: Emails, texts or calls pretending to be from your bank, the tax office or a delivery firm, trying to get your passwords, codes or card details.; Read: How to spot and report money scams in Ireland
PRSI: Pay Related Social Insurance: a charge on earnings that pays for the State Pension, jobseeker’s benefit and other social welfare.; Read: PRSI explained: what it is and how much you pay

R

Real return: What your money earns after inflation. A 5% return when prices rise 3% is a real return of about 2%.; Read: Inflation and interest rates in Ireland, explained

T

Take-home pay: What you actually receive after tax and other deductions. Also called net pay.
Tax bracket: A slice of income taxed at one rate. Only the income inside each slice is taxed at that slice’s rate, so moving into a higher bracket never lowers your take-home pay.
Tax credit: An amount taken straight off your tax bill. A credit of 100 cuts your tax by 100, so it’s worth more than a deduction of the same size.

U

USC: Universal Social Charge: a tax on income on top of income tax, charged in bands. Low incomes are exempt.; Read: USC explained: the Universal Social Charge in plain English

V

Variable rate: An interest rate that can go up or down, usually following the central bank’s rate, so your payments can change.