Savings Account

NoQuarter

Hi all

I want to start saving a small amount regularly; 50-200 p.m. I'd say.

What is the best way to do this? I have no savings at the moment so cant open some accounts which require 1000 etc to open. I'd also like a notice account where I cant spontaneously take out my cash.

Any ideas? Where has the best rates? Should I be looking at any other kind of savings product?

mcbert

Rates aren't great, but this is a good way to compare whats available...

http://www.bonkers.ie/compare-savings-accounts/

NoQuarter

Thanks, that's very helpful!

Forgive the stupid question but is a higher or lower AER better for me? And what is the difference in the below example between the AER and gross?

4.00% AER
5.04% gross
(variable)

I assume the only other consideration is fees & charges?

Is the credit union a better option nowadays?

mcbert

AER: Annual Equivalent Rate

"AER means Annual Equivalent Rate and shows what the interest rate would be if the interest was compounded and paid each year (instead of monthly or over any other period)"

"AER stands for Annual Equivalent Rate. This is the amount of interest earned within one year. AER is useful for comparing the return on savings accounts because it shows how much will be earned regardless of how often interest is credited to an account. It is standard practice in Ireland to list interest in AER form for savings accounts. AER is usually quoted without taking DIRT into account."

So DIRT (Deposit Interest Retention Tax) comes out of you savings after interest has been pid at the quoted rate.

And fees & charges come out too, although I dont think you should have to pay any fees and charges on a pure savings account.

NoQuarter

mcbert wrote: »

AER: Annual Equivalent Rate

"AER means Annual Equivalent Rate and shows what the interest rate would be if the interest was compounded and paid each year (instead of monthly or over any other period)"

"AER stands for Annual Equivalent Rate. This is the amount of interest earned within one year. AER is useful for comparing the return on savings accounts because it shows how much will be earned regardless of how often interest is credited to an account. It is standard practice in Ireland to list interest in AER form for savings accounts. AER is usually quoted without taking DIRT into account."

So DIRT (Deposit Interest Retention Tax) comes out of you savings after interest has been pid at the quoted rate.

And fees & charges come out too, although I dont think you should have to pay any fees and charges on a pure savings account.

Thanks, I had read the definitions from Bonkers. On that definition, I assume the higher the quoted AER the better? What confused me was some 30 day notice accounts had a lower AER than some demand accounts. I would have thought there was a better rate for a notice account?

I assume the DIRT is paid on the interest only?

mcbert

Yep, higher the AER the better.

Yep, I suppose you would expect notice accounts to have higher rates than demand accounts, but maybe some are more eager for customers, so offer better terms.

Yes, DIRT is a tax paid on the interest earned only, not on the principle amount in the account.

NoQuarter

mcbert wrote: »

Yep, higher the AER the better.

Yep, I suppose you would expect notice accounts to have higher rates than demand accounts, but maybe some are more eager for customers, so offer better terms.

Yes, DIRT is a tax paid on the interest earned only, not on the principle amount in the account.

Many thanks for your time, that has cleared everything up.

Demand Deposit account it is then and I am going to bury the ATM card.

ardmacha

mcbert wrote: »

Rates aren't great, but this is a good way to compare whats available...

http://www.bonkers.ie/compare-savings-accounts/

also see http://www.askaboutmoney.com/threads/regular-savings-accounts.20747/