How to Open a State Savings Account in Ireland

What is a State Savings Account?

State Savings are a suite of savings and investment products offered directly by the Irish government through the National Treasury Management Agency (NTMA). Unlike accounts with retail banks or credit unions, State Savings are 100% state-guaranteed, meaning every euro you invest is backed by the Irish government, making them one of the most secure financial options available. They are designed for personal savers and are exempt from the European Union’s Deposit Guarantee Scheme (DGS) because the state guarantee is considered superior.

The range of products includes both short-term and long-term options. For the purpose of this guide, we focus on the savings accounts, primarily the Deposit Account, which functions as a readily accessible, variable-rate savings account. Other products like Savings Certificates and Savings Bonds are fixed-term investment products, not transactional accounts.

Who is Eligible to Open a State Savings Account?

Eligibility criteria for State Savings are straightforward but must be met precisely:

• Residency: You must be resident in the Republic of Ireland. Proof of address is a mandatory requirement.
• Age: You must be 7 years of age or older. For individuals under 16, the account must be operated by a parent or guardian.
• Identity: You must provide valid government-issued photographic identification.
• Tax: You must have a Personal Public Service Number (PPSN). All interest earned is subject to Deposit Interest Retention Tax (DIRT), which is deducted at source by State Savings.
• Capacity: You can open an account as an individual or in joint names (with two people). Accounts cannot be opened in the name of a company, club, society, or trust.

Types of State Savings Accounts Available

While State Savings offers several products, the primary account for everyday saving is the Deposit Account. It is crucial to distinguish this from their fixed-term investments.

• Deposit Account: This is a variable interest rate, instant access savings account. You can withdraw your money at any time without penalty. Interest is calculated on a daily basis and paid annually on the anniversary of the account opening. It is an ideal vehicle for building an emergency fund or saving for short-term goals with zero risk to your capital.
• Other Products (Not Accounts): It is important to understand that products like Prize Bonds (no interest, but entry into weekly prize draws), Savings Certificates, and Savings Bonds are fixed-term investments. They typically offer a fixed return if held to maturity but have restrictions on accessing your funds early and may offer lower returns if cashed in before the maturity date.

Step-by-Step Guide to Opening Your Account

State Savings has moved to a fully digital, online-first process, making it more convenient than ever to open an account.

Step 1: Gather Your Required Documentation
Before you begin the online application, have the following documents and information ready:

• A Valid Email Address: This will be your primary point of communication and your login username.
• Your Personal Public Service Number (PPSN): Essential for tax purposes.
• Proof of Identity: A clear, colour photograph or scan of one of the following:
  • Irish or international passport
  • Irish driver’s licence (plastic card only, not paper)
  • Irish Public Services Card
  • Garda National Age Card
• Proof of Address: A clear, colour photograph or scan of a recent document (less than 6 months old) that clearly shows your name and current address. Accepted documents include:
  • A utility bill (electricity, gas, waste, or broadband)
  • A bank or credit union statement
  • A government-issued letter (e.g., from Revenue or Social Welfare)
  • A current motor tax or insurance document

Step 2: Complete the Online Application

1. Visit the official State Savings website: www.statesavings.ie.
2. Navigate to the “Open an Account” section and select the Deposit Account.
3. Click on the “Apply Now” button. You will be redirected to the secure online application platform.
4. You will be required to create an account using your email address and a strong password.
5. Fill in the application form meticulously. The information required includes:
   • Full name (as it appears on your ID)
   • Date of birth
   • PPSN
   • Contact details
   • Current address
6. You will be prompted to upload the digital copies of your Proof of Identity and Proof of Address. Ensure the images are clear, all corners of the document are visible, and all text is legible.
7. Carefully review the Declarations related to tax residency and read the Terms & Conditions.
8. Submit your application.

Step 3: Verification and Account Funding

• The State Savings team will verify your documents and application details. This process can take a few business days.
• Once your application is approved, you will receive a confirmation email with your new account number and details.
• To activate your account, you must make an initial deposit. The email will provide you with the unique bank account details (Sort Code and Account Number) needed to transfer funds.
• You can transfer the initial deposit from your personal bank account via your bank’s online banking portal, phone banking, or in-branch. The minimum initial deposit is €25.
• Once your funds are received and processed, your State Savings account will be fully active and operational.

Managing Your State Savings Account

All management of your State Savings account is done through their secure online portal, www.mystatesavings.ie.

• Logging In: Use the email address and password you created during the application.
• Viewing Balance: Once logged in, you can view your current balance and accrued interest.
• Adding Funds: You can add money to your account at any time by electronic transfer from your bank account using the unique Sort Code and Account Number provided in your welcome email.
• Making Withdrawals: To withdraw funds, you must log into ‘My State Savings’, select the withdrawal option, and specify the amount. You will need to provide the IBAN of your nominated personal bank account where you want the funds sent. Withdrawals are processed electronically and typically take a few business days to reach your bank account.

Key Considerations and Important Information

• Interest Rates and DIRT: The interest rate for the Deposit Account is variable and is reviewed regularly. It is always displayed clearly on the State Savings website. DIRT tax is automatically deducted from the interest you earn before it is credited to your account. You do not need to declare this interest separately on your tax return.
• Security: The online portal is highly secure. You are responsible for keeping your login credentials confidential. State Savings will never email you asking for your password or PIN.
• Statements: You can view and download your statements at any time from the online portal. Paper statements are not automatically issued but can be requested.
• Customer Service: If you encounter any issues, State Savings provides support via a secure messaging system within your online account. They can also be contacted by phone during business hours for assistance.
• Limitations: It is important to understand that a State Savings Deposit Account is purely a savings vehicle. It does not offer a debit card, cheque book, or direct debit facilities. It cannot be used for day-to-day transactions like a current account.