Irish savers are leaving money on the table. While fixed term deposits have historically been one of the safest places to park savings, most people don’t realise how dramatically rates can vary between providers — sometimes by a full percentage point or more. If you’ve been sticking with your bank’s standard savings account out of habit, you might be losing hundreds of euro in potential interest every year. This guide cuts through the noise to show you exactly which Irish banks are paying the most competitive term deposit rates right now, and what the trade-offs look like when you lock your money away.

4 related posts

Highest 5-year fixed rate: 2.9% Aareal Bank via Raisin · AIB 1-year term deposit: 2.00% · PTSB 6-month online fixed: 1.25% · InfoChoice top rate: up to 5.30% (verify directly) · State Savings Certificates: 1.74% tax-free

Quick snapshot

1Confirmed facts
2What’s unclear
  • Raisin platform rates may outperform Irish banks
  • Whether global high rates like 9.5% apply to Ireland market
  • Rate changes since last official update
3Timeline signal
  • Money Guide Ireland projects €3B lost interest for Irish savers by 2026
  • Bank profits of €2B each in 2023 from low saver rates
4What’s next
  • Raisin platform expanding Irish offerings
  • Traditional banks under pressure to improve rates
Key fact Rate / detail Source
Market leader (5yr) Aareal Bank 2.9% Money Guide Ireland
AIB 1yr AER 2.00% AIB Official
PTSB min deposit €5,000 PTSB Official
Tax-free alternative 1.74% State Savings Money Guide Ireland

Which bank is offering the best term deposit rates?

When comparing the major Irish retail banks head-to-head, the picture is more nuanced than a single headline rate. AIB and PTSB dominate the fixed term deposit space, but they target different saver profiles with their strongest offerings.

The Competition and Consumer Protection Commission (CCPC) operates a lump-sum deposit comparison tool that allows savers to compare current rates across providers in one place. According to Money Guide Ireland, Irish savers could be collectively missing out on potential interest of around €3 billion in 2026 because most instant-access deposit accounts in Ireland have very low interest rates. That staggering figure underscores why it pays to actively compare rather than leaving savings in a low-yield account.

The upshot

AIB offers slightly higher headline rates on fixed terms, but requires €15,000 minimum deposits for the best deals. PTSB’s €5,000 floor makes shorter fixed terms accessible to more savers.

Top rates across terms

For short-term fixed deposits of six months, PTSB’s online fixed term currently offers 1.25% AER with a minimum deposit of €5,000, while AIB’s personal fixed term deposit for the same period sits at 1.50%. AIB technically leads here, but their minimum deposit requirement of €15,000 for the most competitive fixed rates is significantly higher than PTSB’s threshold.

Ireland providers overview

Bank of Ireland also competes in this space, though their rates trail slightly behind AIB and PTSB for most term lengths. According to Lynx Financial Services, Bank of Ireland’s 6-month fixed rate is 1.5%, 1-year is 2%, and 2-year is 1.98%. The 18-month term, however, offers an unusual 3.36% rate with 25% access allowed and a €5,000 minimum — a niche product that suits savers who want partial liquidity.

Why this matters

Irish banks have been criticised for passing only minimal rate increases to savers while benefiting from higher ECB rates. Both AIB and Bank of Ireland reported profits around €2 billion each in 2023, partly sustained by the gap between what they pay savers and what they earn from lending.

Which bank pays the highest term deposit rates?

This is where the comparison gets interesting — and where the answer might surprise you. The highest rates aren’t necessarily coming from the bank you’ve been with for years.

5-year fixed leaders

For longer-term deposits, Raisin — a pan-European savings platform — currently offers the most competitive rates available to Irish savers. MoneyGuideIreland data shows rates up to 3.65% through Raisin for 5-year terms, which significantly outpaces domestic bank offerings. The platform connects savers with European banks that participate in the Irish Deposit Guarantee Scheme, covering deposits up to €100,000.

On the domestic side, PTSB’s 5-year fixed term shows a gross rate of 10.41% on their official rate sheet, though the AER works out to just 2.00% — illustrating how gross rates can be misleading compared to the annual equivalent rate. AIB’s 2-year fixed term deposit rate reaches 3.00% according to Lynx Financial Services, which for a shorter lock-in period compares favourably on an annualized basis.

The pattern: Raisin platforms consistently outperform Irish domestic banks for longer terms, but require comfort with a non-domestic institution and slightly more complex onboarding.

1-year options

For the most popular 1-year fixed term, both AIB and PTSB land at exactly 2.00% AER. PTSB requires a minimum deposit of €5,000 for this rate, while AIB’s personal fixed term deposit requires €15,000 minimum. The Money Sherpa analysis notes that PTSB’s 1-year fixed rate at 2.5% with a €5,000 minimum appeared in some comparisons, though the current official PTSB rate page shows 2.00% — so it’s worth checking directly for the most up-to-date figures.

Provider 1-year fixed AER Minimum deposit Source
AIB 2.00% €15,000 AIB Official
PTSB 2.00% €5,000 PTSB Official
Raisin platform Up to 3.65% Varies Money Guide Ireland
Bank of Ireland 2.00% €5,000 Lynx Financial Services
Bottom line: The implication: if you have a lump sum of €15,000 or more and can lock it away, Raisin offers the strongest returns. For smaller amounts or those who prefer dealing with Irish banks directly, PTSB’s lower minimum deposit makes their 2.00% more accessible.

What are AIB fixed deposit rates?

AIB (Allied Irish Bank) operates two distinct fixed deposit products: their standard Personal Fixed Term Deposit and the online-only AIB Online Regular Saver, which targets regular monthly savers rather than lump-sum depositors.

Personal fixed term deposits

According to AIB’s official deposit rate page, the Personal Fixed Term Deposit product offers: 6 months at 1.50%, 1 year at 2.00%, and 2 years at 2.25%. All of these rates require a minimum deposit of €15,000. The AIB Online Standard Saver, by contrast, pays just 0.25% on balances above the monthly limit — a stark contrast that shows the penalty for not actively choosing a fixed term product.

Minimum deposits

The €15,000 minimum for AIB’s fixed term deposits is notably higher than PTSB’s €5,000 threshold. This creates a meaningful barrier for savers who want competitive rates but don’t have a large lump sum available. According to Revolut’s Ireland savings overview, AIB fixed-term savings rates range from 1.5% to 3% depending on the term, with that €15,000 minimum applying across the board.

For regular monthly savers, AIB’s Online Regular Saver stands out dramatically — paying 3.00% AER on up to €1,000 deposited per month for 12 months. This is one of the most competitive regular saver rates in the Irish market and suits those building savings gradually rather than depositing a lump sum.

The trade-off

AIB’s Online Regular Saver at 3.00% is their strongest offering, but capped at €1,000 per month. A lump-sum depositor with €15,000 might earn more overall with the standard fixed term, while someone saving €500 monthly could earn more with the regular saver.

What are PTSB fixed term deposit rates?

Permanent TSB (PTSB) offers a more granular breakdown of fixed term options than many competitors, with rates varying significantly by term length. Their official interest rate page provides the most current figures for comparison.

Online fixed term

PTSB’s online fixed term products for 6 and 12 months are available through their website: the 6-month term pays 1.25% AER with a €5,000 minimum, while the 12-month fixed term pays 2.00% AER, also with a €5,000 minimum. Both require online account management.

For longer terms, PTSB publishes gross rates that can look impressive until you calculate the AER: the 18-month fixed term shows 2.98% gross (2.00% AER), the 3-year shows 6.13% gross (2.00% AER), and the 5-year shows 10.41% gross (2.00% AER). The identical AER across all terms longer than 12 months suggests PTSB is pricing for simplicity or managing their lending book rather than offering genuine step-up rates for longer commitments.

Deposit thresholds

PTSB’s €5,000 minimum for fixed term deposits is the lowest entry point among major Irish banks for competitive fixed rates. Their 40 Day Notice Savings account offers 0.50% AER for those who want some access — a middle ground between fixed terms and demand deposits.

The catch

PTSB’s fixed term deposits cannot be withdrawn until maturity. Early withdrawal typically results in penalty interest being charged, effectively negating any gains. Savers who anticipate needing access to their funds should consider the notice deposit or a shorter term instead.

What are the best term deposit rates for over 60s?

Senior citizens and retirees often have specific needs from term deposits: guaranteed returns, capital protection, and predictable income. While no Irish bank currently offers a designated “senior rate” separate from their general fixed term products, several features make certain products more suitable for older savers.

Senior citizen rates

The main Irish banks don’t publish age-banded rates, meaning the same 2.00% AER available to a 30-year-old applies equally to a 70-year-old. However, State Savings Certificates — administered by the National Treasury Management Agency — offer 1.74% that is completely tax-free for those aged 65 and over, potentially making the net return stronger than a higher-gross rate subject to DIRT tax.

AIB’s Online Regular Saver at 3.00% is technically open to all ages and could suit seniors with regular income who want to build savings month by month, though the €1,000 monthly cap limits its utility for larger lump sums.

Ireland fixed term for seniors

For seniors with larger lump sums, the comparison between traditional fixed deposits and platforms like Raisin becomes even more compelling. The Deposit Guarantee Scheme covers all bank deposits up to €100,000 regardless of age, providing the same capital protection whether the money sits in PTSB or with a European bank through Raisin.

What to watch

Savers aged 65+ should compare gross rates against tax-free alternatives carefully. A 2.00% bank rate subject to DIRT (at 30-40% for senior taxpayers) may net less than the 1.74% State Savings Certificate with full tax exemption. Run the numbers on an after-tax basis for your specific situation.

“Irish savers could be collectively missing out on potential interest of around €3 billion in 2026 because most instant-access deposit accounts in Ireland have very low interest rates.”

— Money Guide Ireland (Financial Publisher, market analysis)

“AIB offers the most attractive rate for a 2-year fixed term at 3%.”

— Lynx Financial Services (Financial Advisor, rate comparison)

The pattern that emerges from this comparison is clear: the Irish retail banks have converged on nearly identical 1-year fixed rates of 2.00% AER, but their minimum deposit requirements and access restrictions create meaningful differences in who can access those rates. The most competitive products — AIB’s Online Regular Saver at 3.00% and Raisin platform rates above 3.5% — either have monthly caps or require comfort with a non-domestic bank. For seniors specifically, the tax treatment of State Savings Certificates deserves serious consideration alongside gross rate comparisons.

Related reading: mortgage repayments calculator Ireland

Additional sources

moneydoctors.ie, youtube.com, moneysherpa.ie, revolut.com

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Frequently asked questions

How do term deposit rates compare to savings accounts?

Term deposit rates typically outperform standard savings accounts by 1-2 percentage points or more. PTSB’s demand deposit rate sits at 0.01% AER, while their best 1-year fixed term pays 2.00% AER — a 200-fold difference. The trade-off is liquidity: fixed term deposits generally cannot be withdrawn until maturity without penalty.

What minimum deposit is required for top rates?

PTSB’s fixed term products require a minimum of €5,000, while AIB’s Personal Fixed Term Deposit requires €15,000 for the best rates. Online savings accounts like AIB’s Standard Saver have no minimum deposit but pay significantly lower rates.

Are term deposits protected in Ireland?

Yes. All deposits with Irish-authorised banks are covered by the Deposit Guarantee Scheme up to €100,000 per depositor per bank. Deposits through platforms like Raisin with European banks are covered by that country’s equivalent scheme, also up to €100,000.

How often do term deposit rates change?

Banks update their fixed deposit rates periodically in response to ECB policy changes and competitive pressures. There’s no fixed schedule, but Money Guide Ireland and CCPC comparison tools allow you to track changes. The rates in this article reflect what was published on official bank websites as of 2024.

What taxes apply to term deposit interest?

Interest on term deposits is subject to Deposit Interest Retention Tax (DIRT) at the relevant rate for your circumstances. Those aged 65+ may qualify for exemption. State Savings Certificates offer a fully tax-free alternative for eligible savers.

Can I withdraw early from a term deposit?

Generally, fixed term deposits cannot be withdrawn until maturity. Early withdrawal typically triggers a penalty — often the loss of some or all earned interest. Some products offer limited access windows (like Bank of Ireland’s 25% access feature on their 18-month term), but the standard fixed deposit locks your money away.

Which platform offers non-bank deposits like Raisin?

Raisin is the main platform connecting Irish savers with fixed-term deposits from European banks. These products are covered by the relevant country’s deposit guarantee scheme up to €100,000 and often offer higher rates than domestic Irish banks. You’ll need to open an account with the specific bank through Raisin’s platform.