Rates vary and depend on how you save cash
The rates on offer for those willing to leave their money on deposit for a set period have come back now and are very close to some of the demand deposit rates.
The beauty of locking your money away for six months or a year is that you are guaranteed a return.
You need to withdraw the money during the fix period you will likely be hit with a much lower rate. Check the terms and conditions as some deposit takers allow one or maybe two withdrawals without penalty. For a €20,000 lump sum, nationalised Anglo Irish Bank offers the best one-year rate at 3.5pc, according to the Financial Regulator's website, itsyourmoney.ie.
Nationwide UK (Ireland) offers 3.25pc, with Permanent TSB paying 3.2pc for the same amount over a year.
- Save every month:
For those with the discipline and the cash to save every month the rates on offer are attractive, but you need to watch for some nasty terms and conditions.
The highest rate is offered by AIB for its Parent Saver Account, at 5pc.
However, this is only guaranteed to be the European Central Bank rate (currently 1pc) plus 4pc until May of this year.
And there is a monthly maximum of €200. But you can open an account for each child.
Irish Nationwide, which is soon to be largely owned by the State, is offering 4.35pc for a monthly minimum of €100 and a maximum of €1,000 (€2,000 for joint accounts). Watch for rate changes as the guarantee ran out at the end of 2009.