Opening a Savings Account??

Required Field

I'm lucky enough to have been able to save up some of my wages over the past year while living at home, which my bank recently noticed when I went in to make a withdrawal. Cue cashier asking if I'd like to open a Savings Account and if he could pass my details on to someone who would phone me and blah blah blah.

Now, I'm guessing I probably should open a Savings Accounts and put the money I've been accruing in my Current Account to better use, but coming from a family that have never really had much in the way of savings, and being wary of asking the bank for advice (because obviously they're trying to sell me a product/service) I was just looking for clarification on something: I've been told by a friend, rightly or wrongly I do not know, that if I open a Savings Account and the bank goes belly up then my money may be lost because I'd have opened the account after the period that the savings guarantee covers. Is this true?

Additionally, if I allow the wage accrual to continue to build up in my Current Account, is it safe there? i.e. Are Current Accounts covered by any sort of guarantee?

Apologies if I'm asking questions about rather simplistic stuff, but I really don't have an idea and like many people in this country I'm loathe to trust the banks

COYW

Required Field wrote: »

I've been told by a friend, rightly or wrongly I do not know, that if I open a Savings Account and the bank goes belly up then my money may be lost because I'd have opened the account after the period that the savings guarantee covers. Is this true?

Well, firstly, that would depend on the financial institution you bank with and the amount you are putting in but it would take something major for you to lose your deposit account money at this stage. I too recently opened a savings account but that is with a british bank doing business here and I am confident that my principle will be fine. I wouldnt lodge a banana into an account of any irish bank at the moment, even with the guarantee.

corblimey

As far as I know, as long as your bank is covered by the guarantee at the time it goes belly up, you're ok, whether you had the account 50 years or opened it the day before. I believe it applies equally to current or savings accounts, so you might aswell siphon any money you don't need on hand to a savings account. If you're worried about the economy, follow COYW and use a foreign bank (either completely foreign or a foreign one based in Ireland).

unclebill98

I personally believe the Deposit Protection Scheme is not worth more than the paper its written on.

As for being wary of what there trying to "Sell" you, you should not be. If the saving options being offered suits you and the return is good then you should not worry. Some savings accounts limit your access, others are instant access. Plenty to choose from.

The more restricted your access the better the rate.

JTMan

Do not keep large savings in a current account. You can get a much better rate of return elsewhere. There are best buy lists here: http://www.askaboutmoney.com/showthread.php?t=90481

The Irish Deposit Protection Scheme is as good as the solvency of the Irish state.