MAKING CENTS: Want to save? Shop around for the best interest rates.

When it comes to savings and deposits, there is an impression at the moment that interest rates are so low there is no real incentive to save and shop around for rates, writes Gráinne McGunness

It is true that rates are at a historic low and have been for some time and also true that Dirt tax of 41% nearly halves the interest that you do earn. But there is still enough variation for it to be worth shopping around for the best home for your money.

If you are looking to save regularly, there is a wide disparity of interest offered by the major Irish banks, from 1.25% up to 3.5%. The highest rate is courtesy of KBC for amounts between €100 and €1,000, but there are strings attached. The 3.5% rate is only available to customers who have a KBC current account and set up a monthly standing order to the Regular Saver. Otherwise KBC offers a much less attractive 1.5%. There are no restrictions on either version of the account; you can make withdrawals whenever you choose.