Savings advice

saviro

Hey guys. I've never been good at money management and am seeking some advice as to what my options are. Current situation is as follows:

Current account with BOI with 10k. I've never had a savings account, I've always just (stupidly) left everything in this account. Nothing on my credit card so all okay there. I want to open a savings account but what's best for me if I want to put a lump sum of about 6k to start, followed by monthly sums of 500+? Think I need to leave 3k in my current account to avoid charges, but could be wrong there.

Thanks.

JTMan

KBC Extra Regular Saver allows a lump sum deposit of up to 10k and monthly deposits of up to 1k and pays 3.00% AER variable provided you open a KBC Extra Current Account and deposit at least 2,500 EUR per month into this account.

saviro

Thanks. That would be perfect but unfortunately I wouldn't be depositing 2500 p/m.

dennyk

saviro wrote: »

Thanks. That would be perfect but unfortunately I wouldn't be depositing 2500 p/m.

It's only a lodgement requirement; there is no minimum balance. You could keep your BoI current account and set up a standing order to move €2500 from BoI to your KBC current account each month, a second standing order to move €100-€1000 to your KBC Extra Regular savings account (however much you wish to save each month), and then a third standing order to move the remainder back to your BoI current account a few days later. This is what I'm doing with mine, as I prefer to stick with BoI for day-to-day banking and I'm only using the KBC account for the savings.

saviro

Sorry dennyk, slow getting back to you. Thanks for that.

So if I keep the BoI account open I'll be looking at a maintenance fee of €20 per year plus stamp duty I guess. There's no need to keep a 3k balance in it is there (as I won't be using this account for day-to-day banking)? Or will the standing orders count towards transaction fees?

I'm just €100 shy of the minimum requirement for the KBC account but if this is the best option so be it!

Bob24

saviro wrote: »

Hey guys. I've never been good at money management and am seeking some advice as to what my options are. Current situation is as follows:

Current account with BOI with 10k. I've never had a savings account, I've always just (stupidly) left everything in this account. Nothing on my credit card so all okay there. I want to open a savings account but what's best for me if I want to put a lump sum of about 6k to start, followed by monthly sums of 500+? Think I need to leave 3k in my current account to avoid charges, but could be wrong there.

Thanks.

I wouldn't get caught up with the 3k to get free banking. It's free transactions alright but BOI is still charging you 5 euros per quarter for maintenance fees.

If you compare to KBC, even if you're not entitled for the free banking offer they will charge you 6 euros per quarter which includes maintenance fees and unlimited transactions (except ATM withdrawals). So at the end of the day it's on 4 euros more per year compared to what you have with BOI and there is no need to leave those 3k idle on an account. If your 3000 euros are on a savings account with just 0.2% interest rate they will bring you those 4 euros back (and you can definitely get more than 0.2%).

Not telling you to move if you're happy with BOI, but don't stay with them for that offer. If you compare with other banks they will all offer something at least as good and most of the time better for you in terms of the cost of you current account.

As per what to do with your savings, if you want to stay with BOI you could open what they call a 365 monthly saver account. There is no lump sum allowed but they allow a deposit up to €2000 per months so you can transfer you lump sum over a few month and then start your regular monthly standing orders. This will give you a rate of 1.20%.

Having said that I agree with other poster: BOI is neither the best deal for your current account nor for your savings. Personally I would recommend to move both your current account and open your savings account with the same bank to keep it simple, and both KBC and PTSB have decent savings account IMO (The KBC one was already mentioned and the PTSB one is called Online regular saver and gives you 1.25%).

As you can see KBC have the best rates but with the following drawbacks:
- they don't take cash lodgements if this is something you need
- no free ATM withdrawals
- most of the offers are promotion based to attract new customers and can change over time, so to get the most of it you need to check once in a while that you are still on the best deal and ask them to change if appropriate
- they have fewer branches (but probably the best online/mobile banking across Irish banks, which I tend to value more these days)

None of these are biggies but if you are a heavy cash users it might not be the most suitable bank for you.

BorneTobyWilde

eurokev wrote: »

Boards has gone a bit mad since the woman with the stolen car.

I thought you were taking the piss and had good giggle, but you're serious!!

There's surely some other way. Work more hours, 2nd job... The housing assistance scheme. Others on here will have better suggestions. I dunno... But am thinking there is something wrong with using a go fund me page for this

Have you ever heard of Patreon so on. I know a girl who hikes in the US, she vlogs on youtube, her trails so on. She gets 6k a month ongoing on Patreon from people who donate, and it's not a once off, it's a monthly fee that people commit to donate. All the 1$ add up. She would have thousands of followers. It's a beautiful thing, one person could not give her 6k a month, but 6000 people can give her a dollar a month.
Helping people is a beautiful thing.

cefh17

BorneTobyWilde wrote: »

GO ahead.
Worth a go.

No thanks, I pay my own way and if I can't afford something I go without it, no matter the hardship. Seems a bit cheeky to basically be begging for money from random boards users. I'm sympathetic to the guy who posted it, but not to what he's asking for!

Back to the OP I recommend N26 if you won't be withdrawing from an ATM more than five times in a month. Currently there are no basic account charges like debit card use etc, and the lump the money into the highest interest savings, KBC as mentioned above

Delta2113

First thing to do and save at least €20 per year is move your BOI Current Account to EBS Money Manager which is FREE or if you can operate a KBC Current Account FREE following it's term's.

Nobody should be paying Current Account fee's -they are totally avoidable.

Bubbaclaus

Delta2113 wrote: »

First thing to do and save at least €20 per year is move your BOI Current Account to EBS Money Manager which is FREE or if you can operate a KBC Current Account FREE following it's term's.

Nobody should be paying Current Account fee's -they are totally avoidable.

That 20 euro a year will really help towards a house. After 1,500 years you'll have saved up enough for a deposit.

NIMAN

Bear in mind that savings rates are at an all time low.

I know you are getting nothing extra for having your 10k in a current account, but you'll get next to nothing for putting it in a savings account.

JTMan

NIMAN wrote: »

Bear in mind that savings rates are at an all time low.

I know you are getting nothing extra for having your 10k in a current account, but you'll get next to nothing for putting it in a savings account.

You can get 2.50% AER variable on the 10k which is 250 EUR gross per year. Not nothing.

NIMAN

True, minus DIRT of course.