Savings

• Savings are accounts than can be held at a bank or credit union.  Savings usually have higher interest rates than deposits.  Interest growth is on monthly, six month or yearly anniversaries.

• Savings 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.

• Savings can have some withdrawal restrictions of a week or so.

• Interest is usually subject to DIRT and PRSI.

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

• Savings are suitable for investors who need readily accessible emergency funds; allocation of a portion of portfolio to meet diversification goals; risk-adverse investors; and looking for a higher rate than deposits.