Deposits

• Deposits are current or demand accounts held at a bank or credit union.  Returns on deposits are paid out as interest and pay either monthly or at the end of a term.  Interest rates are based on ECB rates.

• Deposits do not keep up with the rate of inflation so this would be considered a risk.  Since rates are based on ECB rates, there is also a risk of interest rates changing and no longer meeting your financial objectives.

• Another risk is that the bank or financial institution could default, however deposits are covered up to €100,000 by the Deposit Guarantee Scheme.

• Typically with deposits, there is no term in time.

• Interest is usually subject to DIRT and PRSI.

• Access to funds is quite easy and there are no explicit charges.

• Deposits are suitable for investors who need readily accessible emergency funds; allocation of a portion of portfolio to meet diversification goals; and risk-adverse investors.