DIRT rate increased to 33%

The normal DIRT rate will increase from 30% to 33% with effect from 1st January 2013 onwards. The DIRT rate applying to deposit tracker bond increases form the same date to 36%.

As indicated already, deposit interest will also become subject to normal PRSI @ 4% with effect from 2014 for employees; PRSI has always applied to self employed Class S PRSI.

The increased DIRT rate in 2013 and the imposition of PRSI on deposit interest from 2014 will mean depositors will be getting a lower net return in 2013 and again in 2014, this is coupled with a long term trend towards lower deposit rates meaning the argument for keeping money on deposit is becoming weaker and weaker.

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