Cash usually sits in a deposit account by default, not because anyone worked out that’s the best place for it. It’s familiar, but deposit interest is fully taxable, and there may be lower-risk ways to earn a higher return on your cash.

If you’re holding a significant cash balance that you don’t need in the short term, whether personally or through a company, it’s worth understanding an alternative that’s getting more attention lately: Irish Government Bonds.

What an Irish Government Bond actually is

An Irish Government Bond is a loan to the Irish State. When you buy one, you are lending money to the Government, which agrees to repay the full amount on a set maturity date. Some Irish Government Bonds pay a regular coupon along the way. Others, known as zero coupon bonds, pay no periodic interest.

Instead, they are issued and traded below their repayment value, with investors earning a return from the difference between the purchase price and the amount received at maturity, net of any applicable fees and charges.

As at 11 August 2026, gross yields across a sample of maturities on the Irish Government Bond curve looked like this:

Source: Bloomberg, 11 August 2026. Yields quoted gross, excluding annual account fee and dealing commission. Prices and yields move daily and are not guaranteed.

Take the 2031 zero coupon bond specifically: as at 11 August 2026 it was trading at around 85.9 cents for every €1 of face value. Hold it to maturity in October 2031 – just over 5 years out, and the State repays the full €1.

For context, Cantor Fitzgerald’s own worked example, based on a price of 85.8 cents in April 2026, shows that a €2 million allocation to this bond would deliver a net return of roughly €247,000 over the life of the bond after all annual account fees and dealing costs – with the gain currently exempt from Capital Gains Tax under Revenue rules.

Today’s market price is very close to that example, although actual outcomes will depend on the purchase price and market conditions at the time of investment.

Why it’s getting attention now

A few things line up at once.

• Net yields may be higher than those available on many deposit and state savings accounts.
• They carry the backing of the Irish State. For investors who want lower risk exposure within a portfolio, that sovereign backing is an important feature.
• Under current Irish tax legislation, gains on Irish Government Bonds fall outside the scope of Capital Gains Tax. By contrast, deposit interest is generally subject to Deposit Interest Retention Tax (DIRT) of up to 33%. As a result, investments with similar gross returns can produce materially different after-tax outcomes.

You’re not locking your money away

A common misconception is that this cash is tied up until maturity, the way it would be in a fixed-term deposit, but Irish Government Bonds trade on the market every business day, so you can sell whenever you need access to your cash rather than waiting on a maturity date. That’s part of what makes them suitable for investors who want a better return than a deposit but don’t want to give up the ability to access their money if plans change.

The one factual trade-off: if you sell before maturity, you get whatever the market price is on that day, and that price reflects prevailing interest rates and market conditions at the time. As a result, the value received may be higher or lower than the original purchase price.

If held to maturity, however, you should receive the full face value regardless of how prices have moved in between.

Who this may suit

It’s best suited to a meaningful cash balance, whether held personally or through a company, that isn’t needed for anything specific in the near term, where the goal is simply a better after-tax return than a deposit account provides.

Most people have a clear plan for their investments. Fewer have thought as much about their cash. If you are holding significant cash and would like to understand whether Irish Government Bonds, or another fixed income solution, might have a role to play, we would be glad to talk it through.

Interested in learning more?

Get in touch with us to book a consultation with one of our wealth planning experts.

Written by James Stafford, Business Development Associate, Cantor Fitzgerald Ireland