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Savings account instant access/long term

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  • 10-04-2012 10:10pm
    #1
    mazdamps
    Closed Accounts Posts: 27 ✭


    Hi all.

    I would like some help and advice on what to do with my savings and have it make some money for me.

    Currently I have about 7k in my current account with bank of ireland and 8k in an easy saver instant access account with BOI and 24k in a 1 year fixed rate ( 3.55% ) account with PTSB.

    I save about 600e a month which goes into the easy saver account.

    The easysaver with BOI is grand up to 5k, but after 5k the interest drops from 2.5% to 0.5% so I have to get money out of there now.

    With my PTSB fixed rate account up for renewal next month and the easysaver past the 5k limit I need advice what do.

    In an ideal world I would like to have an instant access or short access saving account with a good interest rate 3-4.5% but they are hard to find.

    I would like to keep 4k in my current account ( for emergencies, dodge bank fees etc )

    The rest in a good savings account.

    A few people have suggested getting a flight to a tax free country like Switzerland, Austria etc an open a savings account to avoid dirt, but is that even legal?

    Dirt at 30% is a killer.

    Any advice appreciated.


Comments

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    #2
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,071 Mod ✭✭✭✭AlmightyCushion


    I believe the off shore account route is legal as long as you declare any money earned from it as income tax. e.g. if you have €100,000 in an offshore account earning 4% interest you inform revenue of it and then pay income tax on the €4,000 earned as interest.

    I could be wrong there though so hold off on that until some else clarifies it. Permanent TSB do a regular saving account at 4% interest. You can put between €1 and €1000 a month into it and the rate stays the same until you go over €50,000. It's instant access as well so no need to keep a huge amount in your current account and you can use it on line as well. I use this as my savings account and I find it brilliant.


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    #3
    mazdamps
    Closed Accounts Posts: 27 ✭mazdamps


    AlmightyCushion wrote: »
    I believe the off shore account route is legal as long as you declare any money earned from it as income tax. e.g. if you have €100,000 in an offshore account earning 4% interest you inform revenue of it and then pay income tax on the €4,000 earned as interest.

    I could be wrong there though so hold off on that until some else clarifies it. Permanent TSB do a regular saving account at 4% interest. You can put between €1 and €1000 a month into it and the rate stays the same until you go over €50,000. It's instant access as well so no need to keep a huge amount in your current account and you can use it on line as well. I use this as my savings account and I find it brilliant.

    Thanks Almighty.

    Do you have a link for that account.

    Sounds ideal.

    Offshore would be an idea if I had alot of money, but I am just your average joe putting a few pennies away every week.


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    #4
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,071 Mod ✭✭✭✭AlmightyCushion


    https://www.permanenttsb.ie/whatweoffer/savingsandinvesting/savingsaccounts/online-regular-saver/

    Make sure the balance doesn't go over €50,000 though as the interest rate drops to 1% on the whole balance.


  • Options
    #5
    digzy
    Registered Users Posts: 3,049 ✭✭✭digzy


    instant access on lump sum

    aib on line deposits or kbc. both about 3.1% before dirt.


  • Options
    #6
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    mazdamps wrote: »
    Hi all.

    I would like some help and advice on what to do with my savings and have it make some money for me.

    Currently I have about 7k in my current account with bank of ireland and 8k in an easy saver instant access account with BOI and 24k in a 1 year fixed rate ( 3.55% ) account with PTSB.

    I save about 600e a month which goes into the easy saver account.

    The easysaver with BOI is grand up to 5k, but after 5k the interest drops from 2.5% to 0.5% so I have to get money out of there now.

    With my PTSB fixed rate account up for renewal next month and the easysaver past the 5k limit I need advice what do.

    In an ideal world I would like to have an instant access or short access saving account with a good interest rate 3-4.5% but they are hard to find.

    I would like to keep 4k in my current account ( for emergencies, dodge bank fees etc )

    The rest in a good savings account.

    A few people have suggested getting a flight to a tax free country like Switzerland, Austria etc an open a savings account to avoid dirt, but is that even legal?

    Dirt at 30% is a killer.

    Any advice appreciated.

    PTSB 2 month term deposit @ 3.55% would seem to suit you best.

    All the options are here.


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  • Options
    #7
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    AlmightyCushion wrote: »
    I believe the off shore account route is legal as long as you declare any money earned from it as income tax. e.g. if you have €100,000 in an offshore account earning 4% interest you inform revenue of it and then pay income tax on the €4,000 earned as interest.

    I could be wrong there though so hold off on that until some else clarifies it. Permanent TSB do a regular saving account at 4% interest. You can put between €1 and €1000 a month into it and the rate stays the same until you go over €50,000. It's instant access as well so no need to keep a huge amount in your current account and you can use it on line as well. I use this as my savings account and I find it brilliant.

    Offshore is 100% legal provided you declare interest and declare the account to the revenue.

    Agreed that the PTSB online regular saver account is a good option but the OP has a lump sum to deposit so a regular saver account is not the best immediate approach.


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    #8
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    digzy wrote: »
    instant access on lump sum

    aib on line deposits or kbc. both about 3.1% before dirt.

    KBC Smart Access is 3.25% provided you have at least 3,000 EUR in the account.


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    #9
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,071 Mod ✭✭✭✭AlmightyCushion


    Fungus wrote: »
    Offshore is 100% legal provided you declare interest and declare the account to the revenue.

    Agreed that the PTSB online regular saver account is a good option but the OP has a lump sum to deposit so a regular saver account is not the best immediate approach.

    He could still keep his 5k lump sum in his BOI account at 2.5% while moving €400 of it and putting his €600 a month in to the PTSB account.


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    #10
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    AlmightyCushion wrote: »
    He could still keep his 5k lump sum in his BOI account at 2.5% while moving €400 of it and putting his €600 a month in to the PTSB account.

    The OP also has 24,000 EUR maturing that needs a home.

    2.5% is a poor return for your money.

    Again, the PTSB 2 month term deposit might be the best option here.

    Drop feeding the PTSB Online Regular Saver account is an option over the medium term.


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    #11
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,071 Mod ✭✭✭✭AlmightyCushion


    Fungus wrote: »
    The OP also has 24,000 EUR maturing that needs a home.

    2.5% is a poor return for your money.

    Again, the PTSB 2 month term deposit might be the best option here.

    Drop feeding the PTSB Online Regular Saver account is an option over the medium term.

    Ha ha. Completely missed the 24,000, I thought it was the 5,000 lump sump you were on about.


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