Despite onerous cost-of-living increases, recent data from the Central Statistics Office suggest we are saving more of our income than ever. Irish households tucked away an impressive 12.5 per cent of their disposable income, or about €1 in every €8, in the first three months of 2026. It is estimated that total household bank and credit union deposits in Ireland total as much as €176.4 billion.
Yet for many years, diligent savers have been rewarded with minimal interest on their deposits. This may change as the Government prepares to launch its new State savings and investment scheme, but there are still myriad ways to fight the erosion caused by inflation.
While the expert consensus is that keeping three to six months’ worth of essential living expenses in an easy-access account is prudent, beyond that, it’s time to start making those savings work harder.
“Beyond that emergency buffer, leaving large sums sitting idle in a standard current account or near-zero-interest savings account is simply leaving money to be eroded by inflation,” says Raisin Bank’s country head for Ireland, Eoghan O’Hara.
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Dermot Ryan, PTSB’s head of bank products and pricing strategy, is strategic with his own “rainy day fund”. “I keep part of these funds in a PTSB 32-day notice account to resist the temptation to break into the fund for non-emergencies, and to earn a more attractive interest rate,” he says.
While long-term wealth building can be better served through investing, the cash you choose to hold on deposit still needs to work for you. O’Hara says making a simple switch to a higher-rate easy-access or fixed-term deposit account is an “effortless and rewarding” way to earn extra money on your hard-earned savings. “Not everyone has the desire to start investing, but making sure your savings earn a fair return should be a priority for all of us,” he says.
The good news, O’Hara says, is that there has never been a better time to be an Irish saver when it comes to the number of providers competing for your money. Significantly higher-yielding fixed-rate and flexible deposit offers from banks across Europe are now easily accessible to Irish savers from providers such as Raisin. “Crucially, savings accounts are protected by statutory Deposit Guarantee Schemes up to €100,000 per bank, per depositor under EU law,” he says. “That means you get complete peace of mind and a reliable, fixed return on your cash.”
When it comes to earning as much interest as possible without going down the investment route, this depends on the degree of risk someone is willing to take, the length of time they can lock funds away for, and, of course, the amount of funds they have.
“At PTSB, for example, our fixed term deposits offer our best rates on amounts from €5,000, with our ‘Interest First’ product paying interest up front,” Ryan says. “Our online regular saver products allow customers to save up to €2,500 per month, building up to €75,000 at an interest rate of 2 per cent, including on-demand customer access without penalty in the event of an emergency.”
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Ultimately, it comes down to matching your cash to your timeline. For multiyear growth objectives over five years or more – such as your pension pot – the capital markets remain the right way to outpace inflation long term, O’Hara says.
Ryan agrees. “For periods of five years or more, greater returns can be achieved via investment products, with the Government’s proposed new personal investment account scheme set to offer further tax advantages for investors,” he says.
But for funds you want to keep on deposit, O’Hara suggests a “ladder strategy” to create the perfect balance. He says: “You keep your emergency reserve in an accessible demand deposit account, while staggering the rest of your medium-term savings across fixed-term deposits that mature at different intervals, such as six months, two, or three-year terms.” This approach provides a steady, predictable stream of money, unlocking exactly when you need it for life milestones, while ensuring your money earns a fair return in the meantime.
The bottom line? “If you know you won’t need to touch a certain amount for a certain time frame, it should not be in a current account.”
