Demand deposit accounts

Demand deposit accounts, otherwise known as instant access savings accounts, offer flexibility and competitive rates of interest for Irish savers. You can typically open a demand deposit account with as little as €1, top it up whenever you like, and withdraw your money at your convenience. With Raisin Bank, these savings accounts are deposit-protected up to €100,000 per depositor and bank, and free to open.

A demand deposit account allows you to earn interest on your savings, while offering the flexibility of accessing your cash whenever you need to. Suitable for both lump sum amounts and regular monthly savings, you can save as little or as much as you want to, all on a timescale that suits you.

Demand deposit accounts usually have no minimum term and may also be offered as a joint account (however, note that it isn’t possible to open a joint demand deposit account with Raisin Bank). To be eligible to open a demand deposit, you’ll need to be at least 18 years of age, and you might need to have an existing account with your chosen provider. It’s important to note that the interest you earn on your savings is subject to Deposit Interest Retention Tax (DIRT).

The demand deposit account interest rate is sometimes paid annually, usually on a set date or on the anniversary of the opening of your account, but you may also find deposit accounts that pay interest monthly or quarterly. Depending on the account you choose, you might also be asked to nominate another bank account for the interest to be paid into.

With Raisin Bank, interest on demand deposit accounts compounds quarterly. As an example, let's say you open a demand deposit account with €5,000, and it pays 3.25% AER. Assuming you pay the money into your account on the first day of the month, make a monthly contribution of €50, and the interest rate doesn’t change, this is what you could earn:

This will depend on your financial circumstances, financial goals, and whether the terms of the account suit you and your lifestyle.

To help you decide, consider the pros and cons of demand deposit accounts (more on those below), and compare different types of savings accounts.

To find the best demand deposit for you, it's worth doing your own research, making sure you read the small print, and having a clear understanding of your savings priorities. You may also wish to consider which demand deposit account offers the best interest rate, whether the account offers online banking services, when and how often you can make withdrawals, etc.

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.

When opening a demand deposit account, consider the following questions:

• Does this account suit my savings style?
• Will this account help me meet my savings goals?
• Can I access this account when and wherever I need to?
• Will the interest rate help me meet my target savings number?

Most demand deposit accounts can be opened with as little as €1, but you should keep in mind that you’ll more interest if you deposit a larger sum.

Yes, you will have to pay tax, as the interest you earn on your savings is subject to Deposit Interest Retention Tax (DIRT). In 2024, DIRT is charged at 33%, a reduction on previous years (it was 41% in 2014-2016, for example).

Any tax you need to pay on your interest is typically deducted by your bank before the interest is paid to you. If you’d like to know more about your deductions, you can request a statement of DIRT.

In the case of Raisin demand deposit accounts, you’ll need to declare your own Deposit Interest Retention Tax (DIRT), as our partner banks are outside Ireland.

Deposit Interest Retention Tax does not apply to interest on demand deposit accounts that are owned by:

• Revenue-approved pension schemes
• Charities
• Companies that pay corporation tax
• People not resident for tax in Ireland

Yes. The Deposit Guarantee Scheme protects your money in the event that your bank, building society, or credit union authorised by the Central Bank of Ireland collapses. Deposits up to €100,000 per person, per financial institution are protected under the scheme, and your money is usually paid to you within 15 working days of your institution failing.

If you have a demand deposit account with a Raisin partner bank outside of Ireland, your account will be protected by the Deposit Guarantee Scheme in the bank’s country, in accordance with EU law.

The most important thing to consider when comparing demand deposit accounts is what you want to get out of your savings. This is likely to differ from person to person, but knowing what your financial priorities are will help you compare accounts and narrow down your search. Your priorities could include:

• Highest interest rates
• Easy access to your money, wherever you are
• Perks and benefits, such as insurance and offers

Our handy comparison table lets you compare the different demand deposit accounts available at Raisin Bank, and see how much interest you could earn.

Raisin Bank gives you access to savings accounts from banks across Europe, typically with more competitive rates of interest than Irish banks. Interest compounds quarterly, which means you’ll benefit from the effect of this compounding. You can also partially withdraw funds whenever you need them.

And don’t forget that your deposits will be protected under the Deposit Guarantee Scheme in your bank’s country up to €100,000 per depositor and bank.