Savings Glossary

A - D, E - H, I - L, M - P, Q - T, U - X

Annual Equivalent Rate (AER)

This is the rate of interest earned within a year, no matter how often interest is added to your account.  The higher the AER, the higher the return you receive.

Balance

This is the amount of money as shown on your bank statement in your bank account at any given time.

Bonus Interest

Sometimes you can earn a higher rate of interest annually once you meet certain conditions relating to a particular account

Credit Interest

Money paid by the Bank to you in return for the deposit of funds, expressed as an annual percentage of the amount of the funds.

Deposit Account

This is a type of savings account on which interest is paid.  There are no cards or cheque books available with this type of account.

Deposit Interest Retention Tax (DIRT)

This is a tax on any credit interest paid to customers (currently 27%, but subject to change)and forwarded by the Bank to the Revenue Commissioners.  Interest is subject to DIRT at the prevailing rate (for more information please visit www.revenue.ie ). There are certain exceptions where customers may be exempt from paying DIRT.  Check out www.revenue.ie for more information.

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Deposit Rate

See Credit Interest

ECB (European Central Bank)

The European Central Bank is the central bank for Europe's single currency, the euro.

Fixed Interest Rate

A fixed interest rate is set on the day an account is opened, and is fixed for the term of the product. 

Fixed Term

Funds are deposited for a specific length of time.  If you need to withdraw funds during the agreed term, it is known as breaking a fixed term and a charge may apply.

Gross Interest

The total interest earned on savings before Deposit Interest Retention Tax (DIRT) is deducted.

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Joint Account

An account opened in more than one name.  This can apply to personal customers e.g. husband and wife, and business customers e.g. partnerships.

Net interest

The actual amount of interest you will receive once Deposit Interest Retention Tax (DIRT) owed to Revenue has been paid. See Gross Interest and Deposit Interest Retention Tax (DIRT)

Return

The amount of money, in the form of interest, that a customer receives when they save money.

Savings Account

An account where you can save and earn interest.

Standing order

This is an instruction from you to the Bank to pay a specified amount from your Account at regular intervals to the account of a specified payee.

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Statement

A bank statement is a record showing lodgements (credits) and withdrawals (debits) on your bank account.  They can be paper-based or electronic, depending on your preference. 

Uncleared Effects

When cheques, drafts or other non-cash items drawn on other financial institutions are lodged to your account, they are shown in the balance of your account although the Bank has not received value for them. Until the Bank receives value, these items are known as “uncleared effects”. You may not be able to withdraw these funds until they are “cleared”. If you do you may be liable to pay Uncleared Interest on any amount withdrawn.  

Uncleared Interest

If you withdraw funds from your account for which the Bank has not received value (i.e. a cheque was has not cleared), then you may be subject to uncleared interest being charged on the amount withdrawn.

Variable Interest Rate

A variable rate is an interest rate that is subject to change at any time.

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Legal Notice

The information provided in this guide does not constitute tax, legal, investment or any other advice.

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