Tax on deposit Interest

• DIRT of 41% on deposit interest earned

 

The DIRT or deposit interest retention tax that is taken off any interest earned has been increased to 41% from 33% from the 1st January 2014 (an increase of  25%)

Tip:

> Look into state savings bonds and installment savings as they do not incur DIRT and therefore offer very competitive rates compared to regular deposit accounts which are subject to DIRT.

> If you are over 65 and your total income is less than €18,000 if single and €36,000 if married, you are not subject to DIRT on your savings. Therefore, if your income was below the above amounts for the last four years, you may be due a refund of DIRT incurred. For the current year, to ensure your bank does not deducted DIRT you have to fill up a form at the following link:  http://www.revenue.ie/en/tax/dirt/leaflets/de1.html