Interest earned by savers falls 50% in just 18 months

Savers putting their money away in some deposit accounts are earning less than half the interest they would have had just 18 months ago, as taxation and interest rates continue to erode their earnings.

Irish savers’ earning power has been slashed in recent years as the main Irish banks have cut interest rates and the Government has increased the level of deposit interest retention tax (Dirt) to 41%.

Consequently, the savings landscape has changed dramatically in just 18 months, according to consumer affairs expert Simon Moynihan.