Michael D'Arcy (Fine Gael) | Oireachtas source

In light of what the Minister of State is saying, I presume the notional figure will change again on 1 January 2015. While people will receive certificate of interests, I am of the view that deposit interest retention tax, DIRT, which is charged at a rate of 41%, is going to have to be taken into consideration in the context of the calculation of interest. For a single person, interest is earned at a rate of 2.3% on all moneys additional to the first €36,000, while the figure which applies in this regard for a couple is €72,000.

In my opinion, the rate of 2.3% should be reduced by the amount of DIRT paid in order that actual amount of money any couple or individual have can be calculated. The calculation relating to the notional rate of 2.3% is fair and reasonable. However, I ask the Minister to State to consider reducing this by the amount of DIRT paid, which is charged at a rate of 41%. The final amount involved is, after all, that which remains when the latter has been paid, not that which obtains when the 2.3% rate has been applied. I ask the Minister of State to bring my view on this matter to the attention of the HSE and the relevant policymakers in order that they might be considered. While people are nominally benefitting from a rate of 2.3%, their savings, etc., are being automatically reduced by 41%.