To Start Saving with a Purpose (Kinda Clueless on This)

Kintarō Hattori

Hi Folks,

Myself and the missus want to start putting some money aside each month. We're going to aim for €1000 per month for at least 2 years minimum but don't know where to start. We want to put aside what money we can each month and ideally not have access to it.

I was looking at some of the various types of accounts on offer from the banks and from what I can tell a straight forward savings account looks to be the one most suited to us. From a bit of research Nationwide Ireland appear to offer the best interest rate (I'm aware that it's a small investment so any return would be minimal).

What advice can you give? €1000 is the target, it may not always be achievable and sometimes it may be considerably more. I get paid commission so what I take home each month varies.

I'd appreciate any advice given.

DMcL1971

The Nationwide UK Ireland Euro Regular Saver Account that you mention is the ideal account for you. It offers the best interest rate for regular savers (4%). The account has to be kept open for at least 15 months, for you that is fine because you want to save for two years. You are only allowed to make 2 withdrawals per year, that cuts down on the temptation. You have to deposit between 100 and 1000 every month, this gives you the flexibility depending on your commission.

The only problems that I see are, firstly, you cannot deposit more than 1000 per month, so if you have a good commission month you will have to save the excess money somewhere else. Secondly, you will need to take some action in month 15. Because once the balance goes over 15K the interest rate drops down to 1.05% so you might want to withdraw the money at that point. Also at month 15 you will be tied in for another 15 month period, so again you might want to consider withdrawing. But for the first 15 months, this account would be ideal for you.

You could also consider the KBC regular saver account. In an effort to attract new current account customers KBC are currently offering 4.5% interest on their regular saver account. However, to get this rate you have to open a current account with them which has fees of at least €6 per quarter.

Up to date details of all the best savings accounts available can be found here http://www.askaboutmoney.com/showthread.php?t=90481

JTMan

If you are saving with the missus, you could open 2 Nationwide UK regular saver accounts. 1 each. This would enable you to save more than 1,000 EUR per month if you find yourself with surplus funds some months.