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Savings Ireland or Australia

  • 20-05-2015 3:53pm
    #1
    MightyMurvin
    Registered Users, Registered Users 2 Posts: 10 ✭


    I have E10,000 in a savings account in Ireland but I live in Australia, I'm home visiting at the moment, 1.5 days left. I also have a savings account in Australia, currently about $22,000 AUD in a regular savings account paying 3.05% interest calculated daily. Goal Saver account from Comm Bank.

    I'm wondering what to do with the 10,000. I could

    a) Transfer about $3800 AUD back to my Irish account to make up the E12,500 needed to be exempt from DIRT. Bank fees etc will apply. The highest interest rate I can find for a 2 year deposit account is about 1.15%. The rates are terrible and I will loose my 3.05% for this month.

    b) Transfer the E10,000 to the Australian account which is about $14,000 AUD. I can't see any cons other than when/if I move back to Ireland I'm transferring a lot of money and will probably get fleeced.

    I traveled to Australia 5 years ago for a year and had no plans to stay, right now there's no plan to stay or to come home, I'm just winging it. I'm looking for advice on what I should do with that E10,000.

    Transfer it to Aus or put it in an Irish savings account. If I transfer it to Aus, what's the best service to use, no doubt the banks will fleece me.


Comments

  • #2
    JTMan
    Registered Users, Registered Users 2 Posts: 5,558 ✭✭✭JTMan


    One should keep savings in the currency that they intend to spend the savings in. Otherwise, one is exposed to FX risk.

    If you think that you will spend the money in AUD, keep it in AUD. If you think you will spend the money in EUR, keep it in EUR. If you don't know, make a good guess.

    If you do end up transferring EUR to AUD or AUD to EUR, use an online currency broker, such as Currency Fair, to reduce your FX transaction cost.


  • #3
    hognef
    Registered Users, Registered Users 2 Posts: 829 ✭✭✭hognef


    JTMan wrote: »
    If you think that you will spend the money in AUD, keep it in AUD. If you think you will spend the money in EUR, keep it in EUR. If you don't know, make a good guess.

    Then split across the two currencies accordingly.


  • #4
    skippy2
    Registered Users, Registered Users 2 Posts: 393 ✭✭skippy2


    Never ever transfer using the banks.......

    Definitely use Currency Fair...........I use them regularly for transfers and their rate and fixed fee of $4 per transaction is hard to beat. Excellent service online

    If in Aus you will get a better rate with UBank i think at the moment you can get nearly 3.5% but maybe not much different from what you are on

    Are you not exempt from DIRT if you are non resident for tax purposes in Ireland ? Not sure about that

    I think for the sake of 10K I would transfer it and get the interest in AUS you should come out ok over the next couple of years and it would balance out any variances at least you will feel you are getting something for your money and if you stay in Aus you improve your savings record

    Dont forget to get citizenship if you have not already done so :-)


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