Guide to fixed-rate bonds

Banks and building societies want you to invest your cash in their savings accounts, which is why they pay you interest.

But with a normal, easy-access account the bank or building society doesn't have any security - you can withdraw your money whenever you like.

That's why they're happy to pay a little bit more to savers using fixed-rate bonds.

A fixed rate cash ISA will pay a guaranteed amount of interest for a set length of time. This could be one of the best savings accounts if you want to take advantage of your tax-free cash ISA allowance and can afford to lock your savings. Compare current mortgage rates Compare current refinance rates Compare current 30-year fixed rates Compare current 15-year. Than you would on a savings account. They're best for long-term.

These are accounts where you agree in advance not to touch your cash for a set time, typically between six months and five years.

In return for your money for a guaranteed time, the account provider guarantees you a fixed rate of interest.

That means that, whether rates fall or rise elsewhere, you'll continue to get the amount you agreed.

We regularly monitor and compare the Interest Rates onSavings Accounts in Ireland. We check the highest interest rates on instant access deposits as well as regular savings accounts and fixed-rate deposits.

The interest rates on Irish deposit accounts in 2021 are still very low. Many instant access accounts are only paying 0.01% interest. On a deposit of €50,000 you would only earn €5 in interest in a year at a rate of 0.01%. After tax this would be just €3.35.

As a general rule, you’ll usually get slightly better interest rates if you tie your money up for longer. You can get rates that are 80 times bigger than the tiny 0.01% offered by the main banks. Why accept €5 interest on €50,000 when you could get €350 or more ?

Best Fixed Term Savings

Note: DIRT (Deposit Interest Retention Tax) decreased from 35% to 33% from January 1st 2020 – so that will mean slightly more interest for savers. More details of DIRT here

What Is The Best Fixed Term Savings Account

Click on the links below to see the best savings rates on offer in Ireland in February 2021

• Best Instant Access Deposit Rates
  
• Regular Saver Accounts
  
• Best 1 Year Fixed Deposit Interest Rates
  
• Highest Interest Rates on Fixed Terms Up To Five Years
  

Best Fixed Term Savings Interest Rates

You could also earn higher interest with a regular savings account or a fixed-term deposit. But remember, with a fixed term account you may not be able to access your money immediately (or even not until the end of the term) – and there could be a withdrawal fee.

If you are looking at alternative forms of investment – such as stocks and shares – you should take a look at these articles

Whilst we strive to maintain the rates and update them when changes occur – customers should double-check with the financial institutions for confirmation of current rates.