The tax on savings increased in 2011 to 27%. However, I've noticed that on the Revenue Commissioners website it states that where the interest is credited less frequently than annually that a rate of 30% applies. Does anyone know is this the case with an 18 month savings account which I have with the EBS? I would be grateful for any comments. Thanks a lot.
Most NTMA State Savings products are not subject to any tax, not 27%, not 30%.
All lump sums payable on maturity are tax free in Ireland and this applies to the · 10% paid on Savings Bonds - 3 year (no annual interest paid) · 11% paid on the National Solidarity Bond - 4 year · 21% paid on Savings Certificate - 5 ½ year (no annual interest paid) · 40% paid on the National Solidarity Bonds - 10 year
DIRT is only at 27% is only applied to the annual interest (never to lump sum paid on maturity) which is paid on the · Ordinary Deposit Account (demand)- 1% pa = 1% Gross / 0.72% NET after tax · Deposit A/c Plus (30 day notice) - 3% pa = 3% Gross / 2.19% NET after tax · The National Solidarity Bond 4 year - 1% pa = 4% Gross / 2.92% NET after tax · The National Solidarity Bond 10 year- 1% pa =10% Gross / 7.30% NET after tax
Ooops ... sorry Blackrock, I was using the payment frequency of the NTMA products as an example of where some longer term deposits are not subject to the higher tax rate due to annual or bi-annual payment frequencies. As you correctly pointed out the NTMA products are DIRT free.
A better example would be a Rabo 5 year term deposit that offers the option of annual interest payments.