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Savings Interest Calculator

See the interest on a demand deposit or fixed-term account, and what you keep after DIRT at 33%.

€
%

The yearly rate the bank quotes

€

Interest you keep

€167.50

After 1 year at 2.5% AER

Balance at the end
€10,168
Tax on the interest
€82.50
Your balance at the end
  • Money you put in€10,000
  • Interest you keep€168
  • Tax€83

What this means

After tax, your savings earn about 1.67% a year. With prices rising around 2.5% a year, that’s about 0.8% a year less than inflation, so the money loses buying power.

Shopping around pays: a rate just 0.5% higher would earn you €33.50 more after tax over 1 year.

Banks deduct DIRT at 33% from interest before paying it. State Savings products from An Post are tax-free.

Next step

Breakdown

PeriodInterestTaxBalance
1 year€250.00€82.50€10,168

What a better rate is worth

  • 1.5%€100.50 after tax
  • 2%€134.00 after tax
  • 2.5%€167.50 after tax
  • 3%€201.00 after tax
  • 3.5%€234.50 after tax
Assumptions in this estimate
  • The rate stays the same for the whole period. Savings account rates can change at any time; fixed-term rates are set when you open the account.
  • Savings accounts add interest monthly. A fixed-term deposit adds it at the end of the term, or each year on terms over a year.
  • Tax is worked out on each year’s interest and taken from the balance, as when tax is deducted at source.
  • Money added each month goes in at the end of the month.
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How the calculator works

  1. Amount and rate: what you put in, and the AER.
  2. Type of account: a savings account adds interest monthly, and you can add money each month. A fixed-term deposit fixes the rate for the term.
  3. Tax: DIRT at 33%, or tax-free for State Savings or if you’re exempt.

Example

€10,000 at 2.5% AER for a year:

Bank deposit State Savings
Interest €250.00 €250.00
DIRT (33%) €82.50 €0
Interest you keep €167.50 €250.00

With DIRT, a bank account paying 2.5% leaves you about 1.68%. A tax-free State Savings product paying more than that comes out ahead.

Getting a better rate

  • Compare after DIRT: multiply a bank’s rate by 0.67 to compare it with tax-free State Savings.
  • Check your current account: many pay nothing, and a demand deposit account at the same bank may pay more.
  • Match the account to the goal: keep your emergency fund where you can reach it, and fix money you won’t need for a while.

For longer-term growth, try the compound interest calculator.

Last updated

Frequently asked questions

How much interest will €10,000 earn?

At 2.5% AER, €250 in a year. Your bank takes off DIRT of €82.50, so you keep €167.50.

What is DIRT?

Deposit Interest Retention Tax: 33% of the interest, which your bank takes off and pays to Revenue before paying you. For most people it’s the only tax on deposit interest. If you file a tax return, you include the interest there.

Who doesn’t pay DIRT?

People aged 65 or over (or whose spouse or civil partner is) with an income under €18,000 (€36,000 for a couple), and people who are permanently incapacitated. You can claim it back from Revenue, or ask your bank to pay interest without DIRT.

Are State Savings tax-free?

Yes. Savings Bonds, Savings Certificates, National Solidarity Bonds and Prize Bonds from An Post State Savings are tax-free and backed by the State. Rates are often lower than the best bank rates, but with no DIRT they can still leave you with more.

Is my money protected?

The Deposit Guarantee Scheme covers up to €100,000 per person, per bank, building society or credit union.