Savings account - don't know where to start

Alex86Eire · 04-11-2022 6:31pm #1

Hi guys,

I've a BOI current account. I started paying €400 into a credit union account every month a few years ago. I've been told recently that I've reached the credit union limit and they won't accept any more money into the account.

I'm unsure what to do next. I'd like to keep putting the €400 in to some kind of account/savings plan but no idea where to even start looking. I wouldn't need to access the money at very short notice I'd imagine. I wouldn't have a great head for this kind of thing.

TIA for any suggestions.

billyhead · 04-11-2022 7:54pm

State Savings perhaps. You can set up direct debits to lodge money each month.

Citrus_8 · 05-11-2022 2:47pm

https://www.boards.ie/discussion/2058270446/savings-account-dont-know-where-to-start

If you currently have a current account with BOI, I'd just open a savings account with them. Or open it with Bunq.

Henry Ford III · 05-11-2022 2:57pm

https://www.boards.ie/discussion/comment/119834147#Comment_119834147

Return won't match inflation. Why bother guaranteeing a loss?

greasepalm · 05-11-2022 3:00pm

Are you allowed to open a second account in the credit union ?

I know post office you can.

Jim_Hodge · 05-11-2022 3:06pm

https://www.boards.ie/discussion/comment/119836882#Comment_119836882

Neither will their existing Credit Union account.

billyhead · 05-11-2022 3:30pm

https://www.boards.ie/discussion/comment/119836882#Comment_119836882

The returns are better than nothing.

Jim_Hodge · 05-11-2022 3:36pm

https://www.boards.ie/discussion/comment/119836990#Comment_119836990

And it's still putting some funds away while maintaining a savings habit.

blade1 · 05-11-2022 3:47pm

Is there dirt to be paid on state savings?

NIMAN · 05-11-2022 4:02pm

https://www.boards.ie/discussion/comment/119836909#Comment_119836909

There's no savings account paying the current rate of inflation of 10%, so every single savings account is to dismissed then?

Edit: apologies Jim Hodge, I should have quoted Henry Ford and not yourself.

Jim_Hodge · 05-11-2022 5:10pm

https://www.boards.ie/discussion/comment/119837046#Comment_119837046

No.

coylemj · 05-11-2022 5:11pm

OP is probably getting next to zero interest from the CU so I really don't think that is an issue, he just wants a home for his surplus cash.

OP, if you have a current a/c with BoI, it's no problem to open one or two savings accounts. I did so (online) a couple of years ago and it was a piece of cake. On a web browser, login to 365online and on the action bar, above your account(s), click on the 'Apply' option. That will will take you to a screen titled 'Apply Online' and you need to click on the last icon, titled 'Instant Access Demand'.

This is the description...

Apply for an Instant Access Demand Account in Minutes

Bank of Ireland’s Instant Access Demand Account can be used as a standalone on-demand savings account or as a Money Pot to separate, set aside, pool, or ringfence money from your Bank of Ireland current account where money is available on demand with instant access and visibility.

Henry Ford III · 05-11-2022 5:23pm

https://www.boards.ie/discussion/comment/119837101#Comment_119837101

You've some prospect of making some money in investment funds.

In an ultra low interest rate environment a certain level of risk is actually essential to make real returns.

NIMAN · 05-11-2022 5:28pm

https://www.boards.ie/discussion/comment/119837452#Comment_119837452

Yeah of course you can make money other ways, you can also lose it.

If you had a look at what my pension pot has lost in 15 months!!

Jim_Hodge · 05-11-2022 6:20pm

https://www.boards.ie/discussion/comment/119837452#Comment_119837452

Risk is the key part of that. I've hard my fill of investment funds over the past 40 years. Very few lived unto expectations, and even then where at a time when State Savings Certificates worked out as Good or even better. I accept you need to take risks on investments but the OP is looking for savings similar to his Credit Union savings.

Henry Ford III · 05-11-2022 9:49pm

https://www.boards.ie/discussion/comment/119837752#Comment_119837752

You must have had some poor choices, poor advise, or your timing must have been poor.

The average managed fund (net) would have been producing reasonable real returns over the longer term.

I had a 10 year life assurance savings policy that yielded in excess of 10% p.a. after tax.

Deposits have their place - for short term hold. Anything beyond that is unwise.

rolling boh · 05-11-2022 9:54pm

Would prize bonds be an option have a small chance of a return and easy enough to cash in if required .

Jim_Hodge · 05-11-2022 10:03pm

https://www.boards.ie/discussion/comment/119838755#Comment_119838755

I've had returns and losses, as I said. I've also had 50% interest, tax free, on 5year state certificates. Call whatever you like unwise but how we save or invest depends on many factors - not limited to age profile, access requirement, ability to absorb potential loss. I took risk when it suited. I gained and I lost. Nowadays I have maxed out the State Savings products. Anybody you says they always made on investments is a liar.

Jim2007 · 06-11-2022 12:15am

https://www.boards.ie/discussion/comment/119838804#Comment_119838804

Without know what products you used and how you used such products it's impossible to say where you went wrong. And I know plenty of people who have produced annualised returns above 10% because providing performance and attribution reports was a big part of my job.

It really is not terribly difficult to do, if people stick to the guidance, problem is very few people do.

Alex86Eire · 06-11-2022 1:03am

Thanks a million for all the suggestions and help. I'll look at state savings/prize bonds first I think!

Xidu · 06-11-2022 10:31am

Wait till next year March and buy some SPY ETF

Jim2007 · 06-11-2022 1:28pm

https://www.boards.ie/discussion/comment/119839931#Comment_119839931

Are you able to compare and contrast the risk profile of savings account versus an index fund??? Not helpful.

Xidu · 06-11-2022 2:16pm

Savings only get u v little interest

but SPY next year could go down to 300/share and return could be 150/ share in 3 years time

the chance of going down to 280-250 is possible but not for long

and SPY ETF isn’t just individual shares

long term it will always go up

as u said you don’t need to access the money for a while so why not take the risk?

I thought I have been very helpful

in 2-3 years, your 400/m will turn to 500-600

Jim_Hodge · 06-11-2022 2:22pm

https://www.boards.ie/discussion/comment/119840637#Comment_119840637

Pure speculation. The OP was asking about savings accounts, not investments. Nothing helpful at all.

Jim2007 · 06-11-2022 4:49pm

https://www.boards.ie/discussion/comment/119840637#Comment_119840637

When someone asks for a low risk option, you do not respond with a high risk option and fail to even indicate that. People on here act on information given here. Like I said - Not helpful.

Xidu · 06-11-2022 5:14pm

😁😁

it’s called think out of the box

just trying to be helpful

06-11-2022 5:24pm

State Savings is safe. Some time back the yield was decent enough and the interest tax free. So put some there.

blade1 · 06-11-2022 5:56pm

Just looked up state savings there and says if you're new to it you first have to purchase a product.

What's that about?

Jim2007 · 06-11-2022 5:59pm

https://www.boards.ie/discussion/comment/119841531#Comment_119841531

No it is not.

MOD WARNING: NOW STOP.

Boardnashea · 09-11-2022 5:22pm

You may be able to open an account in another Credit Union. It will most likely have a similar savings limit. There is no problem having more than one CU account but not in the same CU.

State Savings probably suitable (incl Prize Bonds) and there will be some small return.

Or a savings account linked to your current account as mentioned above a couple of times.

Hotblack Desiato · 09-11-2022 7:16pm

No problem being a member of more than one credit union if you are within the "common bond" of each, e.g. there are (at least) three I can join:

The one for employees of my previous employer (I joined this before I left but can stay forever)

The one for employees of my current employer

The one for the area in which I live.

Savings account - don't know where to start

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