Saving communion cash good way to learn
Director of Communications and Market Insights with the CCPC (www.ccpc.ie) to help maximise the benefit of your nest egg. If you have any debts outstanding (such as credit card debt, an overdraft or a personal loan), you should consider paying these off.
Interest rates on these products are generally high — in particular if you have an outstanding balance on your credit card. If you have a mortgage, you could also consider paying off a lump sum which would mean you would pay it off quicker and therefore save money on interest. However, if you have a fixed rate mortgage, you could be charged a penalty to pay off a lump sum — so talk to your lender about your options first.
Return on savings may be low but if you are looking for a risk-free option, this is generally the most straightforward option. Do bear in mind that any inflation will mean that your money loses value over time.
A good place to start if you want a deposit account is to compare the various products available. There is a handy lump sum savings comparison tool on the CCPC’S website which you can use.
This tool shows the current rates and features of all savings accounts on the market for fixed-term deposits (where you lock your money away for a certain time), notice accounts (where you must give a certain amount of notice for withdrawals) and instant access (where you can withdraw money at any time) accounts.
If you can afford to lock your money away for a set period, a term deposit account will generally offer a higher return. However if you need immediate access to your funds, you can choose an instant access account. You could also split your money into a term deposit and an instant access account if you think you may need immediate access to some, but not all, of your nest egg.
Investments offer the potential for a higher return than savings but involve a greater degree of risk. Before you decide to invest, you should consider the impact of losing some or all of your money.
Typically, the greater the return you want from an investment, the riskier the product, so you need to be careful that the level of risk you are taking on suits your circumstances.
It is crucial that you review the charges associated with investments as these vary depending on the type of product you invest in. Thinking about the access you will have to your money is also vital, as well as fully understanding the terms and conditions of the product.
If you need more help, you should contact an authorised financial adviser who will help you review your options. A list of independent financial advisers is available on the Central Bank of Ireland’s website.