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FAQs on Savings
What is EAR and AER?
Equivalent Annual Rate (EAR) and Annual Equivalent Rate (AER) have the same meaning. They are used to show the full price of interest on an account. The higher the EAR or AER, the more interest you will earn. EAR and AER should be quoted on all Saving Advertisements to allow you to compare interest rates.
Back to TopWhat is DIRT?
Deposit Interest Retention Tax (DIRT) is the type of tax you pay on interest you earn. Under Irish Law all deposit accounts are subject to the standard rate of DIRT, currently held at 25% and is subject to change
Back to TopWhat is gross interest?
The gross rate of interest is the amount of interest earned before the deduction of DIRT at the rate specified by law, currently 25% and is subject to change.
Back to TopWhat is net interest?
The net interest rate is the amount of interest earned after the deduction DIRT as specified by law, currently 25% and is subject to change.
Back to TopWhat is a fixed rate of interest?
A fixed rate of interest is fixed for a set time; it is not affected by changes in the current interest rate environment (i.e. European Central Bank base rate).
Back to TopWhat is a variable rate of interest?
A variable interest rate is an interest rate that may increase as well as decrease when interest rates change.
Back to TopWhat is the difference between a Demand Account and a Term or Fixed-rate Account?
A demand account offers a variable rate of interest and allows you instant access to your money if you need it. With a term or fixed-rate account you receive a fixed rate of interest on your money for a specific period of time.
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