Saving is important. It allows you to build a fund to pay for any unexpected expenses, and by saving for big purchases instead of borrowing, you can avoid paying interest. Building a consistent savings habit can also help you if you\u2019re considering applying for a mortgage.<\/p>\n
Before you start to save,\u00a0decide how much you can afford to put aside each week or month and for how long. To do this look at your income, what you spend each month and what you owe on any loans. Our useful\u00a0budget planner<\/a>\u00a0helps you to see how much you will have\u00a0left over to save or invest. You can then set about starting your savings plan.<\/p>\n Paying extra off\u00a0outstanding\u00a0loans<\/a>\u00a0or clearing your balance on your\u00a0credit card<\/a>\u00a0will save you money.\u00a0Paying extra off your loans means\u00a0you will pay less interest, and helps you to clear your debts faster. It can make more sense to clear debts, rather than hold on to savings, if the interest rate on your loan is higher than the rate you are earning on your savings.<\/p>\n Se\u00e1n has a \u20ac10,000 loan over four years, at an interest rate of 10.1%. Six months after taking out the loan he gets a pay rise of \u20ac100 a month and isn\u2019t sure what to do with it.<\/p>\n \u22c5 If Se\u00e1n puts an extra \u20ac100 a month towards the loan, he would save \u20ac583 in interest and pay off the loan 13 months quicker.<\/p>\n \u22c5 If he saves that \u20ac100 per month in a savings account with 3% AER, he could earn \u20ac160 interest over the 3 and a half years. This \u20ac160 is also subject to Deposit Interest Retention Tax (DIRT) tax.<\/p>\n In this example, putting the extra \u20ac100 a month towards the loan would save Se\u00e1n around \u20ac475 when tax is deducted.<\/p>\n<\/div>\n<\/div><\/div>\n Use our\u00a0loan calculator<\/a>\u00a0to see how much you could save if you reduce the amount you borrow. Then compare it to how much you would earn if you saved your money instead. You should also check if your loan has any early repayment fees.<\/p>\n Deposit accounts work by adding interest to your savings. Some accounts offer higher interest rates than others, you can use our Money Tool<\/a> to help you shop around for the best interest rate for your savings.<\/p>\n The annual equivalent rate (AER), or compound annual rate (CAR) will help you compare rates on different accounts. The higher the AER or CAR, the more interest you earn, but remember a higher rate may mean you have less access to your money.<\/p>\n Interest rates on savings and deposit accounts may be either\u00a0fixed or variable.<\/p>\n You must pay DIRT tax on the interest you make unless you are exempt.\u202fMore information can be found on the\u00a0Revenue<\/a>\u00a0website.<\/p>\n Savings accounts give you access to your money either immediately or by giving notice of withdrawal. You can choose between different accounts.<\/p>\n \t\t<\/div>\n\n\t\t\n\t\t\t\t\t The National Treasury Management Agency (NTMA)\u00a0offers a range of savings products which are available at\u00a0statesavings.ie\u00a0<\/a>or through\u00a0An Post<\/a>\u00a0branches, including:<\/p>\n For more details go to\u00a0statesavings.ie\u00a0<\/a>or visit any post office.<\/p>\n \t\t<\/div>\n\n\t\t\n\t\t\t\t\t Credit unions are community-based organisations that provide services and loans for their members. To become a member you must fall within a \u2018common bond\u2019. This means you must:<\/p>\n You can get more information on credit union membership from the\u00a0Irish League of Credit Unions<\/a>\u00a0and the\u00a0Credit Union Development Association<\/a>.<\/p>\n You can withdraw your money on demand from most credit union accounts, but you may have to keep a certain amount of savings if you also have a loan with that credit union.<\/p>\n Credit unions usually pay you a yearly dividend rather than interest on your savings. The rate given will depend on the level of profit your credit union made the previous year, so it is not guaranteed.<\/p>\n You must pay DIRT \u00a0tax on the interest you make unless you are exempt. More information can be found on the\u00a0Revenue<\/a>\u00a0website.<\/p>\n \t\t<\/div>\n\n\t\t\n\t\t\t\t\t As a European Union (EU) resident, you can shop around for banks\/financial providers in other EU countries. There are a number of different websites and platforms available that allow you to compare the interest rates and terms of savings accounts available.<\/span>\u00a0<\/span><\/p>\n However, as appealing as some interest rates may seem, it is important to find out some key information. Learn more about <\/span>saving your money in another European country<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n \t\t<\/div>\n\n\t\t<\/div>\n\n Clear your debts first<\/h2>\n
\nExample<\/h4>\n
Ways to save<\/h2>\n
\n\t\t\t\tDeposit accounts\t\t\t<\/h3>\n\t\t\n\t\t
The difference between fixed and variable rate<\/h2>\n
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How do\u00a0you get access to\u00a0your money?<\/h2>\n
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\n\t\t\t\tState savings schemes\t\t\t<\/h3>\n\t\t\n\t\t
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\n\t\t\t\tCredit union accounts\t\t\t<\/h3>\n\t\t\n\t\t
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What rate of return do you get on your savings?<\/h2>\n
\n\t\t\t\tSavings accounts in other EU countries\t\t\t<\/h3>\n\t\t\n\t\t