What’s next for interest rates in Ireland?

The European Central Bank's (ECB) main deposit rate currently sits at 2.00%. 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) accelerated to 3.6% in the 12 months to March. The annual Harmonised Index of Consumer Prices (HICP) also increased to 3.6%.

Following its 30 April 2026 meeting, the European Central Bank left its deposit facility rate unchanged at 2.00%. There has been no change to the ECB’s key rate since December 2025, which remains the benchmark for savings and deposit rates across the euro area.

In the past couple of years, the ECB has 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%, where it has remained since.

According to new figures from the Central Bank of Ireland, the average rate on new Irish mortgage agreements at end-February was 3.51%, up 1 basis point from January.

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

Following the most recent ECB rate decision, President Christine Lagarde said:

"If I were to summarise what we decided today, I would say that we made an informed decision on the basis of information that is still ‌insufficient. Why do ⁠I say it was an informed decision? Because we debated at length and in depth various options. We debated the decision that we have unanimously taken today, but we also debated at length and in depth a possible decision to hike."*

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

*https://www.reuters.com/business/finance/lagarde-comments-ecb-press-conference-2026-04-30/

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.
• Shop around for the best savings interest rates. You can use a comparison website to compare the interest rates offered by different Irish banks.
• Consider exploring 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.