Could somebody please explain to me what DIRT rate means? I have a special bonus saver account with BOI. I have been saving 100E every month since nov 2007 in this account. I got a letter that I will be charged 25% DIRT RATE . Nobody picks up the phone when i call my bank, it goes to voice mail. I would like to know if I will be charged 25% of what I saved till now or what exactly does it mean???
DIRT rate explanation
- Thread starter inasoup
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pjmn
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Re: DIRT rate explaination
DIRT - stands for Deposit Interest Retention Tax. Current rate is 25%. It relates to the interest you receive on your savings - not the savings itself.
e.g. If you had E1,000 on deposit for a year at say 4% interest rate. You would have earned E40 in interest - your bank is obliged to withold 25% of that figure - in this case E10 and pay that over to the Government - you get to keep the E30 (plus your savings).
Hope that helps...
DIRT - stands for Deposit Interest Retention Tax. Current rate is 25%. It relates to the interest you receive on your savings - not the savings itself.
e.g. If you had E1,000 on deposit for a year at say 4% interest rate. You would have earned E40 in interest - your bank is obliged to withold 25% of that figure - in this case E10 and pay that over to the Government - you get to keep the E30 (plus your savings).
Hope that helps...
Re: DIRT rate explaination
Not yet anyway, don't be giving Lenny ideas for the budget!
I am surprised that you actually thought you would lose 25pct a year though....suggest you read more financial advice sites like AAM more often!
Not yet anyway, don't be giving Lenny ideas for the budget!
I am surprised that you actually thought you would lose 25pct a year though....suggest you read more financial advice sites like AAM more often!
S
sunrock
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Re: DIRT rate explaination
That exemption needs to be got rid of ...well for the first 1000e of interest anyway.
Also I suspect the dirt rate will rise in this budget coming up..maybe to 30%.
That exemption needs to be got rid of ...well for the first 1000e of interest anyway.
Also I suspect the dirt rate will rise in this budget coming up..maybe to 30%.
crabbybear
Registered User
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Re: DIRT rate explaination
Thought the only new tax was carbon and didn't think he was increasing any tax, all was going to be expenditure cuts, Don't be giving him ideas to screw us more.
Thought the only new tax was carbon and didn't think he was increasing any tax, all was going to be expenditure cuts, Don't be giving him ideas to screw us more.
Re: DIRT rate explaination
Crabbybear,
The effect of every 1% increase in DIRT based on the 86bln savings (which 36bln of which earns 0.63% see [broken link removed], would be meaningful return to the state, and would be tax better sourced than cutting childrens allowances for the low income.
86bln @ 1% = 860m gross interest, every 1% DIRT generates (assume all pay tax) 8m. Its doesnt make much of a dent in the finances of the state but every little helps. And if interest rates rise, obviously the tax goes up.
it might help get people spending their interest also.
Crabbybear,
The effect of every 1% increase in DIRT based on the 86bln savings (which 36bln of which earns 0.63% see [broken link removed], would be meaningful return to the state, and would be tax better sourced than cutting childrens allowances for the low income.
86bln @ 1% = 860m gross interest, every 1% DIRT generates (assume all pay tax) 8m. Its doesnt make much of a dent in the finances of the state but every little helps. And if interest rates rise, obviously the tax goes up.
it might help get people spending their interest also.
crabbybear
Registered User
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Re: DIRT rate explaination
25% is high enough as far as I'm concerned especially for retired people dependant on their life savings . Again, you can go into a whole debate but I think there alot of wealthy people and high earners who shouldn't be getting childrens allowance. The other side of the argument why should people who haven't worked a day in their life get large handouts from the state.
25% is high enough as far as I'm concerned especially for retired people dependant on their life savings . Again, you can go into a whole debate but I think there alot of wealthy people and high earners who shouldn't be getting childrens allowance. The other side of the argument why should people who haven't worked a day in their life get large handouts from the state.
Re: DIRT rate explaination
Those 65+ are exempt from DIRT.
Nope, the EUSD and DIRT are two totally different things.
Those 65+ are exempt from DIRT.
Nope, the EUSD and DIRT are two totally different things.
I have an amount with rabo - interest is 2% at the moment.
I usually look forward to new years eve as this is when the interest is applied - nothing to celebrate this year.
Last year the amount earned around 8 hundred and something, and I got seven hundred and something after DIRT was applied.
This year the amount earned around 450 interest, and I got around 350 after DIRT.
How its all changed....
I usually look forward to new years eve as this is when the interest is applied - nothing to celebrate this year.
Last year the amount earned around 8 hundred and something, and I got seven hundred and something after DIRT was applied.
This year the amount earned around 450 interest, and I got around 350 after DIRT.
How its all changed....
Oh well - that's what you get for inertia - plenty of better rates out there if you could be bothered availing of them!
Rabo, BoI, AIB etc make their money out of people like you.
indeed I had 10k in a 3yrs credit union a/c and got zero interest for this its first year..... so put it in Savings Bond instead.
Sorry perhaps that sounded bad, but people who won't switch have no right to complain when they get next to no interest...
By watching the best buys you could have locked into rates as high as 6% at the start of last year. Even now Halifax are paying almost twice what you're getting with Rabo. Of course, Rabo not complaining. If people vote with their feet though they might be forced to be competitive!
WaterSprite
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Not this last budget (Dec '09), no.