Interest earned on a bank or credit union deposit is taxed at 33% DIRT, deducted automatically before you ever see it. State Savings products from An Post — savings certificates, savings bonds, and Prize Bonds — are entirely free of DIRT by statute, usually at a lower headline rate. This calculator shows which actually comes out ahead for your numbers.
Both options compound at their own rate over your chosen horizon. The deposit path has 33% DIRT deducted from the interest earned (unless you qualify for the over-65 exemption on total income below Revenue's threshold), while the State Savings path keeps its full return untouched. Because DIRT is charged on every euro of interest with no annual exemption, a State Savings product often wins even at a meaningfully lower headline rate.
Any prize you win is completely tax-free — no DIRT, Income Tax, PRSI or CGT — but unlike a savings certificate the "return" isn't guaranteed, it's a chance in a weekly draw. They're best thought of as a tax-free lottery ticket on money you'd otherwise leave in a low-interest current account, not a substitute for a guaranteed-return product.
Individuals aged 65 or over (or permanently incapacitated) whose total income for the year is below Revenue's standard income tax exemption limit can claim exemption from DIRT at source using Form DE1, or reclaim DIRT already deducted. The exact limits are worth confirming directly with Revenue or your bank, since they're tied to the general income tax exemption thresholds rather than being DIRT-specific.
Yes — credit unions deduct DIRT on dividends and interest paid to members at the same 33% rate as banks, and the same over-65/incapacitated exemption route applies.
Figures are estimates for informational purposes only, based on the assumptions you enter, and are not tax advice. Consult a tax advisor or Revenue.ie before making financial decisions.