Irish households held almost €177 billion in bank deposits at the end of September, while borrowing increased by €5.9 billion over the previous year.
The figures highlight the scale of household savings alongside continued demand for mortgage finance, as a new State-backed investment account approaches its planned launch.
Irish household deposits reached approximately €176.9 billion at the end of September 2026, according to Central Bank of Ireland banking data.
The amount held in household deposits increased by €8.6 billion over the 12 months to September, with most of the additional money going into accounts that allow customers to withdraw their funds when needed.
Of the €8.6 billion increase, around €6.8 billion was placed in overnight deposits. A further €1.2 billion went into deposits with an agreed maturity of up to two years.
The figures show that a substantial proportion of the additional savings remained in readily accessible bank accounts rather than being committed to longer-term deposits or investments.
The trend comes as the Government prepares to introduce the Irish Investment Account, which is intended to give eligible residents another way to invest their money.
Instant-access accounts attract most new deposits
Overnight deposits accounted for almost 80% of the annual increase in household savings.
These accounts provide access to money without requiring customers to wait for a fixed deposit term to end. However, the interest available can be lower than that offered on certain notice or fixed-term savings products.
Central Bank interest-rate data for August 2026 showed that the average rate on household overnight deposits was 0.22%. The average rate on new household term deposits was considerably higher, at 1.88%.
The August figures provide an indication of the difference between the two types of account, although rates vary between providers and products.
For households, the decision between keeping money accessible and seeking a higher return involves balancing flexibility, interest earned and the possibility of needing the funds at short notice.
The Central Bank also recorded a monthly increase of €871 million in household deposits during September. This followed a negative movement in August, although the bank has cautioned that monthly deposit flows can fluctuate.
New investment account targets household savings
The accumulation of household deposits comes ahead of the planned introduction of the Irish Investment Account on 1 July 2027, subject to legislation.
The Government intends the account to make investing more accessible by allowing eligible individuals to hold different types of investments within a simplified tax framework.
Under the announced arrangements, eligible investments will include listed shares, bonds, investment funds and exchange-traded funds. The account will have an annual contribution limit of €12,000 and a €50,000 tax-free threshold. A 1% annual tax will apply to the value above that threshold.
The tax will be calculated on the value of investments held above the threshold, rather than only on profits made. Providers will be responsible for calculating and paying any tax due to Revenue.
The account is not a conventional savings product. Investment values can fall as well as rise, and customers could receive less than they originally invested.
Davy estimates that annual contributions to the scheme could eventually reach approximately €4 billion. The firm also projects that providers could generate between €100 million and €400 million in annual fee income by 2035.
These figures are forecasts rather than confirmed levels of participation or future earnings.
Household borrowing increases by €5.9bn
While deposits continued to rise, households also increased their borrowing.
Central Bank figures show that household lending grew by €5.9 billion in the year to September, an annual increase of 5.3%.
Loans for house purchases accounted for €5.3 billion of the additional lending. Consumer borrowing contributed approximately €802 million.
The figures underline the importance of housing finance in household credit. Most of the annual increase in lending was associated with house purchases rather than consumer spending.
However, the national totals do not reveal how borrowing is distributed across households or whether individual borrowers are becoming more financially stretched.
The relationship between savings and debt is also important. A household may have money in a deposit account while carrying a mortgage or other loans, and the national figures do not show how much of the savings belongs to households with outstanding debt.
Business deposits and borrowing also increase
Irish companies recorded increases in both borrowing and deposits over the same period.
Business lending rose by €3.1 billion, equivalent to annual growth of 11.2%. The reported increase was the largest annual flow since March 2009.
Companies also held €87.6 billion in deposits, an increase of €4.4 billion over the year.
The figures point to higher levels of borrowing and cash holdings across the business sector. They do not, however, establish whether companies are using additional credit for investment, working capital, expansion or other purposes.
What the figures mean
The latest banking figures show two developments taking place at the same time: Irish households are continuing to build their deposit balances, while also borrowing more, particularly to purchase homes.
The planned Irish Investment Account could introduce another option for people considering how to manage longer-term savings. Its eventual impact will depend on the number of people who participate, the products available and the fees charged by providers.
But the nearly €177 billion held in household deposits should not be interpreted as evidence that every household has substantial savings. National totals can conceal significant differences in financial circumstances, particularly between households with large deposits and those facing high housing and living costs.
The figures offer an important snapshot of Ireland’s household finances, but they also highlight why savings, borrowing and housing affordability need to be considered together.
Sources: Central Bank of Ireland, Money and Banking Statistics and Retail Interest Rate Statistics; Department of Finance and Revenue, Irish Investment Account announcements; Davy estimates.
