Best way to save? Savings accounts?

BeAllEndAll

Soon I'm hopefully going to be saving >1,000-1,200 per month and I'm trying to find out what the best options are.

I've a current account with AIB but I'm thinking I could possibly continue using this as my personal/disposable income account and whichever other one I end up setting up will be where the money is lodged. Or should I move the money from this current account into this new savings account from the start as well?

Basically, I'm trying to save up as much as absolutely possible for a year and, if possible, make some gains through interest or something.

tkd93

That was me 6 months ago. Also with AIB. Opened up a regular saver with them 2% interest can deposit up to a thousand per month account and can have up to four of these accounts. Roll along a few months and its starting to add up quite nicely. Might find other similar accounts that offer sightly higher interest rates but im pretty happy with it so far.

tkd93

I should also say to answer your question, defo set up a separate saving account. Have a direct debit that goes from your current account to saving account on payday and you will soon get used to it. Also way less likely to spend it if not in current account.

topper_harley2

tkd93 wrote: »

I should also say to answer your question, defo set up a separate saving account. Have a direct debit that goes from your current account to saving account on payday and you will soon get used to it. Also way less likely to spend it if not in current account.

Agreed. However 2% is rubbish. KBC have a 4% regular saver account. EBS have 3% account. You need to shop around to get best rates.

JTMan

tkd93 wrote: »

That was me 6 months ago. Also with AIB. Opened up a regular saver with them 2% interest can deposit up to a thousand per month account and can have up to four of these accounts. Roll along a few months and its starting to add up quite nicely. Might find other similar accounts that offer sightly higher interest rates but im pretty happy with it so far.

You can have up to 8 AIB regular saver accounts. 4 online and 4 branch accounts.

There is no maximum per month in terms of deposit amount. However, there is a monthly interest threshold that keeps increasing by increments of 1,000 EUR per month until month 13 when it resets. Hence, before month 13, you need to withdraw amounts over 1,000 EUR, or you will get a much lower rate on the sums above 1,000 EUR.

tkd93

Forgot about the EBS offer but where is the KBC offer bonkers.ie is showing KBC at 3%

topper_harley2

https://www.kbc.ie/Our-Products/KBC-Current-Account/Current-Account/Extra

4% saver is in conjunction with current account

Sonnenblumen

topper_harley2 wrote: »

https://www.kbc.ie/Our-Products/KBC-Current-Account/Current-Account/Extra

4% saver is in conjunction with current account

That's an outstanding offer

Charles Babbage

Also NationwideUK is 3% http://www.nationwideuk.ie/

Green Mile

http://www.bonkers.ie/ is where you need to start off. KBC is good but they have fees on current accounts that you can't avoid. For that reason, I'm sticking with permanent tsb for my current account and setting up a DD to Nationwide (3%).

The DIRT on the earnings is a terrible thing at the moment, headily worth while saving at all.

craoltoir

Also look at tax free savings options with An Post State Savings.

http://www.statesavings.ie/Pages/StateSavings.aspx

keane2097

Would it be worthwhile for someone in this position to consider investing in e.g. Vanguard index funds with the likes of DeGiro?

lawred2

Green Mile wrote: »

http://www.bonkers.ie/ is where you need to start off. KBC is good but they have fees on current accounts that you can't avoid. For that reason, I'm sticking with permanent tsb for my current account and setting up a DD to Nationwide (3%).

The DIRT on the earnings is a terrible thing at the moment, headily worth while saving at all.

you can avoid the fees if you deposit more than €2500 a month into a KBC extra account

newacc2015

craoltoir wrote: »

Also look at tax free savings options with An Post State Savings.

http://www.statesavings.ie/Pages/StateSavings.aspx

The rates are pretty horrific on short term bonds. Even if you go for long term bonds. Studies in the US, have shown that you are always better off going for short term bonds over higher interest long term bonds. As short term bonds are less vulnerable to inflation, as the rates will be adjusted more frequently.

at9qu5vp0wcix7

Have interest rates always been this poor in Ireland?

topper_harley2

Maurice Dirty Saltwater wrote: »

Have interest rates always been this poor in Ireland?

Nope. And It's not just Ireland. Some counties are actually paying negative interest rates. You do remember the whole banking crash etc yeah?!

Rates will be low for foreseeable future. Good for borrowing, bad for saving.

BeAllEndAll

tkd93 wrote: »

I should also say to answer your question, defo set up a separate saving account. Have a direct debit that goes from your current account to saving account on payday and you will soon get used to it. Also way less likely to spend it if not in current account.

Would it be best to have the wages lodged to the savings account and then setup a direct debit from there to my current account or do as you say? It's just, I'm wondering if there'd be a bigger charge on moving the larger sum of money from the current account compared to moving the small amount to the current account.

topper_harley2

BeAllEndAll wrote: »

Would it be best to have the wages lodged to the savings account and then setup a direct debit from there to my current account or do as you say? It's just, I'm wondering if there'd be a bigger charge on moving the larger sum of money from the current account compared to moving the small amount to the current account.

Lodge wages to current account. In this way you can satisfy many bank's requirements for free current account banking. I have never heard of anyone getting wages lodged to a savings account directly.

Also, there shouldnt be any charge for moving money between any accounts.