Quick answer
- A tax-free AER and a taxable gross AER should not be compared as if both are kept in full.
- A simple standard-DIRT match is tax-free AER divided by 0.67.
- A 2.66% tax-free AER is approximately equivalent to 3.97% gross before 33% DIRT.
- The higher after-tax number is not automatically the better product if access, term or rate conditions do not fit.
Irish Calculator
Open this Irish calculator to test your own numbers and compare the result with the guide.
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The after-DIRT comparison formula
For a simplified standard-DIRT rate comparison:
Comparable taxable gross AER = tax-free AER ÷ (1 − 0.33)
| State Savings product from 30 August 2026 | Tax-free AER | Approx. taxable gross AER match |
|---|---|---|
| 3-Year Savings Bond | 1.96% | 2.93% |
| 5-Year Savings Certificate | 2.29% | 3.42% |
| Instalment Savings | 2.33% | 3.48% |
| 10-Year National Solidarity Bond | 2.66% | 3.97% |
This isolates standard DIRT only. It does not reproduce every provider’s interest-crediting schedule, promotional limit, tax exemption or account condition.
Compare the same term and the same access
| Check | State Savings | Bank savings |
|---|---|---|
| Rate | Fixed issue return for fixed-term products | May be fixed, variable or introductory |
| Tax | Fixed and instalment returns tax-free | DIRT commonly deducted unless an exemption applies |
| Access | Issue-specific early-repayment schedule | Instant, notice or fixed-term conditions |
| Protection | Direct Government obligation described by NTMA | Applicable deposit-guarantee rules for eligible deposits |
| Limits | Product-specific holding limits | Rate tiers, account caps and protection limits may differ |
A ten-year rate should not be compared with an instant-access rate on headline AER alone. Start with when the money is needed, then compare returns over the matching period.
Worked €10,000 five-year comparison
New 5-Year Savings Certificate Issue 26 has a 12% total tax-free return, so €10,000 becomes €11,200 at maturity.
A bank account quoted at 3.50% gross AER and taxed at standard 33% DIRT has a simplified net AER of 2.345%. If that rate stayed unchanged and net interest compounded annually, €10,000 would become about €11,229 over five years. The difference is small and may be reversed by rate changes, crediting details or access conditions.
Use the calculator to change the amount, issue date and bank rate instead of relying on this example.
Frequently asked questions
How do I compare State Savings with a bank rate?
Compare the same amount and term, reduce taxable bank interest for DIRT where applicable, then review access, rate conditions and protection.
What gross bank AER matches 2.66% tax-free?
Using standard 33% DIRT as a simple rate comparison, approximately 3.97% gross AER.
Is every bank saver charged DIRT?
Not necessarily. Exemptions and refunds can apply in specific circumstances. Check the current Revenue guidance for your position.
Does a higher AER always win?
No. A rate may apply for a different term, limited balance or promotional period, or have different access conditions.
Does the comparison include inflation?
No. It compares nominal euro returns. Inflation affects purchasing power but does not change the stated maturity value directly.
Sources & references
- NTMA: State Savings rates increase announced 17 August 2026
- Ireland State Savings: Rates from 30 August 2026
- Ireland State Savings: Product terms and conditions
- Ireland State Savings: Tax treatment of products and prizes
- NTMA: State Savings and the Irish Government obligation
- Revenue: Current DIRT rate
Related calculators
Use these tools for the numbers behind this guide.