Deposit interest rates rising again soon?

T

TheJackal

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With the recent Central Bank rate increases, when should we expect Irish banks to start offering higher interest rates for savings?
 
I have no insight, but Irish banks are swimming in deposits

As of June BoI total customer deposits from Ireland were €68bn but BoI had €35 billion parked at the Central Bank of Ireland due to inability to lend the rest.
 
Also the gruelling lack of competition in Irish banking is showing its consequences here. On the Continent banks are now paying up to around 3% on one year fixed-term deposits. In Ireland a typical deposit rate is 0.05%.
 
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Where on the Continent of Europe is offering 3% on deposits. I know in the Rep of Cyprus you'll be given 0.5 % like Ireland. Turkey you'll get from 12% to 17.5% but you better have your Kamikaze head in place to avail of that rate. :cool:
 
noproblem said:
Where on the Continent of Europe is offering 3% on deposits. I know in the Rep of Cyprus you'll be given 0.5 % like Ireland. Turkey you'll get from 12% to 17.5% but you better have your Kamikaze head in place to avail of that rate. :cool:
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OK not quite 3% but close enough..
 

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tomdublin said:
Also the gruelling lack of competition in Irish banking is showing its consequences here. On the Continent banks are now paying up to around 3% on one year fixed-term deposits. In Ireland a typical deposit rate is 0.05%.
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Wow thats a good rate. Any link?

Highest i have seen for 1 yr is 2.55%
 
tomdublin said:
OK not quite 3% but close enough..
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Thank you for that.
Interesting indeed and looking into it. There's 3.15% over 5 years available in France with the €100k guarantee. 2.55% for 1 year, 2 years @ 2.87% and only pay the tax in your own/home country.

Jim and Lookahead, do you mind me asking which country did you guys go with?
 
noproblem said:
Thank you for that.
Interesting indeed and looking into it. There's 3.15% over 5 years available in France with the €100k guarantee. 2.55% for 1 year, 2 years @ 2.87% and only pay the tax in your own/home country.

Jim and Lookahead, do you mind me asking which country did you guys go with?
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Portuguese bank called gasto something or other.

My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.
 
jim said:
Portuguese bank called gasto something or other.

My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.
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Thanks Jim, have lump sum maturing and looking at the 5 year 3.15% with Younited Bank France. Think I'll register tomorrow and see where it takes me. Appreciate your reply.
 
jim said:
Portuguese bank called gasto something or other.

My 3rd year deposited with them. Happy with it. Just makes little since to leave money deposited in Bank here earning nout.
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Important to check the credit rating of some of those banks. You are covered with deposit guarantee but who knows how long you be waiting to get deposits back were any of them to go under.
Also be aware some of them deduct a 10% holding tax and they will require tax clearance certificate from revenue here.
 
Is there any difficulty / additional tax payable on the Irish side because the bank is not Ireland based? Or is it in effect the same as opening an account in Ireland?
 
noproblem said:
Thanks Jim, have lump sum maturing and looking at the 5 year 3.15% with Younited Bank France. Think I'll register tomorrow and see where it takes me. Appreciate your reply.
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I was with BluOr bank in Latvia, they had great rates up until this year. I didn't renew with them partly because of the onset of war in Ukraine but I'm now considering reinvesting with Raisin. I read somewhere the Portuguese bank credit rating is not great which is why the interest rate is high but if anyone can confirm that, I be grateful
 
Look ahead said:
You have to declare the interest on your tax return minnus the witholding tax already paid.

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Thanks for that.

So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
Interest received - E2550
Less Witholding Tax (28%) - E714
Less DIRT (33%) - E605.88
Net return - E1,230.12 or 1.23% (E23.65/wk)

Does my calculation look right?
 
aiddan said:
Thanks for that.

So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
Interest received - E2550
Less Witholding Tax (28%) - E714
Less DIRT (33%) - E605.88
Net return - E1,230.12 or 1.23% (E23.65/wk)

Does my calculation look right?
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I think that looks broadly correct
 
aiddan said:
Thanks for that.

So just so I am clear - interest rate for 1 year is 2.55% - return on E100k invested would be as follows:
Interest received - E2550
Less Witholding Tax (28%) - E714
Less DIRT (33%) - E605.88
Net return - E1,230.12 or 1.23% (E23.65/wk)

Does my calculation look right?
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Does not look right to me. But I not tax advisor.
Should it not be 33% of the total interest of 2550. So 841.50 dirt tax due. If their tax agreement between Ireland and the other country you maybe allow to claim credit for tax already retained by the bank.

If their is you get a credit of 714 leaving a balance 127 euro owned to tax man in Ireland.
 
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