How to choose the right savings account

Finding the right savings account can feel confusing. With so many different types of savings accounts available in Ireland, you’ll need to weigh up your savings goals and financial needs to decide what’s best for you and your money. On this page, we’ll explain some of the options you have, and what you should consider before opening a new savings account.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

There are a number of different types of savings accounts available in Ireland, from flexible savings accounts that you can top up and withdraw from at any time, to fixed-term savings accounts that you won’t have access to until maturity. 

You’ll find differences in terms of the interest rate, the level of flexibility, and the bank or financial institution, but the main types of personal savings accounts you’ll find in Ireland are: 

• Deposit accounts

• Demand deposits

• State Savings

Deposit accounts, or term deposits, are fixed-term, fixed-rate savings accounts with term lengths ranging from three months to five years. They are typically the type of savings account that offers the highest interest rate. You’ll open your savings account with a lump sum, and then you won’t be able to access your money again until the account has matured. With deposit accounts, the interest rate is fixed, so you’ll know exactly how much interest you’ll earn over your chosen term.

Demand deposits are flexible, variable-rate savings accounts where you can top up and withdraw without restriction. The interest rate will typically be lower than you’ll find on a term deposit, and it could go up or down at any time. You can usually open a demand deposit with a small amount, such as €1.

State Savings is the brand name for any personal savings product offered by the National Treasury Management Agency (NTMA). They are also referred to as An Post State Savings or Post Office Savings. State Savings can include savings bonds, savings certificates, and national solidarity bonds. Any returns made on State Savings products in Ireland are tax-free, however, the interest rate tends to be lower overall than other types of savings accounts offered elsewhere.

Choosing the right savings account depends on a number of factors, including your savings goals, what length of time you’re comfortable putting your money away for, whether you want to be able to top up your balance, and whether you prefer a fixed or variable interest rate. Different types of savings plans suit different people, so it’s important to find the one that’s right for you.

You can compare the different types of savings plans available to you in Ireland, and ensure you understand the details and small print of any savings account you open.

Whatever type of savings account you choose, an important factor is whether it offers full deposit protection (such as the Central Bank of Ireland's Deposit Guarantee Scheme), so you have peace of mind that your money is protected.

The right type of savings account in Ireland will differ from person to person, depending on what you need it for and what your savings goals and banking needs are. For example, some savers might consider the right savings account to be the one with the highest interest rate, while some savers would prefer a savings account that allows them to deposit money in a physical branch. Luckily, there are plenty of different kinds of savings accounts available to choose from in Ireland.

The most competitive savings rate we offer at Raisin Bank is 3.00% AER.

If you’re not sure which type of savings accounts to choose, you can compare the key features of deposit accounts, demand deposits and State Savings below.

If a regular savings account isn’t what you’re looking for, you may consider other kinds of savings accounts. Although Raisin Bank doesn’t currently offer these specific types of savings accounts, you could consider a:

Children’s savings accounts are an easy and secure way to save money for your child or grandchild. They mainly work in the same way as adult savings accounts, but they offer options tailored to children’s needs. Depending on the bank and the age of the child, a parent or guardian may need to open the savings accounts on the child’s behalf.

A joint savings account works in the same way as an individual savings account, but two people have access instead of one. Both named people can deposit or withdraw money from the savings account, and it can be a good way to pool money, especially if you’re saving for something together, such as a wedding or a holiday.

A student bank account is designed for second and third-level students in Ireland. They are typically tailored to the needs of university students, with flexible or free overdrafts, no monthly fees, and introductory offers. You’ll need to be in secondary school, university, a recent graduate, or doing postgraduate study to be eligible for this type of savings account.

If you’re saving for something specific, you might also find these guides for different types of savings plans useful.

There’s no set amount of savings accounts you should have - it all depends on your financial situation and your savings goals. For example, you may decide that, alongside your regular current account, you want to have a few types of savings accounts for different needs, such as:

• A flexible demand deposit account that you use for emergency expenses, such as if your car breaks down

• A 3 year deposit account with a lump sum, if you’re certain you won’t need to access the money in that time

• A joint savings account with your partner so you can save for a holiday together

It really depends, and you may need different types of savings accounts as you go through life. Although there isn’t a maximum amount of savings accounts you’re allowed to have, it’s worth thinking about what will be manageable for you.

If you do opt for more than one savings account, Raisin Bank makes the process easy. You only need to register once, and you can then open a variety of savings accounts without having to fill out a new application each time. Plus, all your accounts can be conveniently managed from a single login. That way, you don’t have to limit yourself to one account type.

Whatever you’re saving for, and whatever type of savings account you’re looking for, Raisin Bank offers a wide range of options from across Europe, and all the banks we partner with offer full deposit protection. 

Find the right savings account for you by registering for a Raisin account today.

*According to statesavings.ie - https://www.statesavings.ie/our-products