What’s next for interest rates in Ireland?

The European Central Bank's (ECB) main deposit rate currently sits at 2.25%. Read on to discover if and when interest rates are likely to increase or decrease again, and what this could mean for savings accounts.

Interest rates play a key role in how your savings grow over time. Whether you're comparing fixed or variable rate accounts, understanding how interest is calculated — and what influences it — can help you make smarter financial decisions.

Learn more in our guide to interest rates, or dive deeper into how ECB rates impact your savings.

In Ireland, the Consumer Price Index (CPI) rose by 3.4% in the year to June, down slightly from 3.6% in the 12 months to April. The annual Harmonised Index of Consumer Prices (HICP) was 3.2%. The euro area annual inflation rate, meanwhile, came in lower than projected at 2.8%.

Following the 23 July 2026 meeting, the European Central Bank kept its deposit facility rate, which remains the benchmark for savings and deposit rates across the euro area, at 2.25%.

Jasmin Ehlert, Head of Bank Analytics at Raisin, noted that:

"The latest inflation data allowed the ECB to hold interest rates at its July meeting. Nevertheless, experts expect the central bank to resume rate hikes in September — especially given the conflict in the Middle East and high energy prices.

For savers, this means you can continue to enjoy high interest rates. Short-term fixed deposit accounts or competitive demand deposit accounts can bridge the gap until the next decision in the autumn. By then, you might benefit from even higher rates."

Over the past couple of years, the ECB continued its easing cycle, with interest rates falling through late 2024 and early 2025. By June 2025, the deposit facility rate had reached 2.00%, before an increase to 2.25% a year later.

According to new figures from the Central Bank of Ireland, the average rate on new Irish mortgage agreements at end-May was 3.48%, down 2 basis points from April.

Irish mortgage rates are currently the twelfth highest in the Eurozone.

Following the most recent rate decision, the ECB remarked:

"With today’s decision, the Governing Council remains well positioned to navigate the uncertainty caused by the [Middle East] conflict. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance."*

Because Ireland is part of the euro area, ECB interest rate decisions set the overall interest rate environment for Irish banks.

Here are some things for Irish savers to consider in the current interest rate environment:

• It's important to note that interest rates can vary depending on the lender, and the type of savings account.
• You can use a comparison website to compare the interest rates offered by different banks.
• You might want to consider a fixed term savings account. Fixed term savings accounts typically offer higher interest rates than demand deposit accounts, but you will not be able to access your money during the fixed term.
• Check that your savings account is covered by the national deposit guarantee scheme of the country where the bank is headquartered.

So, what's the best savings account for you? This will depend on various factors, for example the amount you have to save, and whether you’ll need access to your money. If you can afford to lock your money away for a set period, a fixed interest rate account may offer more competitive returns. This type of savings account is often chosen for long-term savings goals.

Public Expenditure Minister, Paschal Donohoe, has said:

“Looking to put money in other parts of Europe, and other banks elsewhere in Europe, is not an unpatriotic act. It’s the way the single market functions.”

Regardless of what happens to interest rates in Ireland, building up your savings can help you stay prepared for unexpected expenses. Whether it’s to take advantage of competitive interest rates whilst they're still around, or to protect yourself and your family, opening a savings account can help you get more from your money.

To compare savings accounts from 30+ trusted European banks, register for a free Raisin Account today.