Irish banking basics: current accounts, savings and DIRT

Last reviewed October 23, 2026

Current account vs savings

	Current account	Savings account
What it’s for	Bills, your debit card, your wages	Money you’re not spending yet
Interest	Usually none	Some: compare the AER
Getting at it	Any time	Demand, notice or fixed term

Have your wages paid into your current account, then set up a standing order to savings for the day after payday. Saving first, before you spend, is the easiest way to make it happen.

What to look for

Low or no fees. Compare maintenance fees and charges per transaction.
A good savings rate (AER). Demand accounts let you take money out any time; notice and fixed-term accounts pay more for locking it away.
Switching is straightforward. Banks follow a switching code, so your new bank moves your direct debits and standing orders for you.
A basic bank account must be offered to people who need one, with low or no fees.

Tax on savings interest

Banks and credit unions take DIRT (Deposit Interest Retention Tax) at 33% from your interest before paying it, so a 3% rate is worth about 2% to you.

A year's interest on €10,000 at 3% In a bank or credit union account, with DIRT at 33%

Part	Amount
You keep	€201.00
DIRT, taken by your bank	€99.00
Interest before tax	€300.00

After DIRT, 3% is worth about 2.01%. A tax-free product, such as State Savings, needs to pay only that much to match it.

Interest on State Savings products from An Post, which are guaranteed by the State, is tax-free. So when you compare, a State Savings product paying 2% a year is about as good as a bank account paying 3%. Use our savings interest calculator to compare accounts after tax.

Is my money safe?

The Deposit Guarantee Scheme protects up to €100,000 per person, per institution if a bank, building society or credit union authorised by the Central Bank of Ireland fails. Joint accounts are split equally between the holders.

Some banks run several brands under one licence, so the limit covers them together. Investments and crypto aren’t deposits and aren’t covered.

Overdrafts

An overdraft lets you go below zero, but it costs interest, often with fees and extra “surcharge” interest if you go over your limit. Keep a buffer, turn on balance alerts, and treat a permanent overdraft as debt to pay off.

Lenders look at your bank statements when you apply for a mortgage or loan, so a current account that’s always overdrawn can count against you. See credit scores explained.

What next

Work out where your money goes with a budget, then start an emergency fund.

Frequently asked questions

How much DIRT do I pay on savings interest?

33% of the interest. Your bank or credit union takes it before paying the interest to you, so on €300 of interest you get €201. For most people there’s nothing more to do.

Is my money safe if my bank fails?

The Deposit Guarantee Scheme protects up to €100,000 per person, per bank, building society or credit union authorised by the Central Bank of Ireland. A joint account is split equally between the holders, so two people are covered up to €200,000 between them.

Are credit union savings covered by the Deposit Guarantee Scheme?

Yes. Credit unions authorised by the Central Bank are covered in the same way as banks, up to €100,000 per person.

How do I switch my current account?

Open the new account and ask the new bank to switch you. Under the switching code, it moves your direct debits and standing orders for you, so you don’t have to contact everyone who takes payments.

Can I get DIRT back?

Only in some cases: if you or your spouse are over 65 on a low income, or you’re permanently incapacitated, you can claim back DIRT or have interest paid without it.