Savers forced to think again as deposits hit by tax and inflation

Rising inflation and higher taxes on interest gains have pushed down real returns on the average Irish deposit account to below 0.5 per cent, writes Jon Ihle.

14th April, 2012

Rising inflation and higher taxes on interest gains have pushed down real returns on the average Irish deposit account to below 0.5 per cent, forcing savers to move their money into longer-term accounts and state savings products for better yields.

The average annual interest rate on household deposits of up to two years was 3.6 per cent at the end of February, according to figures released by the Central Bank last Friday. With inflation in March...

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