4 expert saving tips as we launch into 2025

With more than €100 billion sitting in deposits across Ireland earning less than 1%, and a wide range of saving and investment options available, it can be challenging to decide where to put your hard-earned money to avoid it being eroded by inflation.

To ensure your money is working at its fullest potential, as a member of a leading impartial financial advisory firm, here are four essential savings strategies:

1. Segregate Your Savings by Time

Categorise your savings into short-term (next five years), medium-term (five years to retirement), and long-term (retirement and beyond) ‘pots’.

This structure allows you to align your financial strategy with your timeline and risk comfort level. For example, short-term savings should be in secure, low-risk deposit accounts. Medium-term savings can include options like ETFs or diversified investment accounts with potential returns over 5% annually but may come with moderate risk.

Long-term savings, such as pensions, not only offer higher growth potential but also significant tax advantages.

2. Shop Around for the Best Rates

Once your savings are categorised, finding the best rate for each time period is crucial.

While traditional Irish banks like AIB and Bank of Ireland offer low deposit rates, foreign online banks like Raisin, Trade Republic, and Bunq can provide more competitive interest rates of over 2% annually (before tax). Revolut’s entry into the Irish market has opened eyes to these options, demonstrating that better rates are achievable.

For monthly savings, AIB and Bank of Ireland do offer rates as high as 3% (as of November, 2024), but understanding the terms is essential to maintain those benefits over time.

3. Understand Fees, Charges, and Taxes

Hidden fees and tax implications can eat into your savings. For instance, while Revolut and N26 accounts may have additional fees, Trade Republic and Lightyear typically do not. When investing for the medium term (five years or more), fees set by brokers can vary widely.

High management charges or contribution fees can erode your potential returns, so it’s important to choose wisely and compare offerings. Additionally, some accounts are taxed differently, so knowing the details is key to optimizing your returns.

4. Seek Impartial Financial Advice

While it’s tempting to rely solely on personal research, getting impartial financial advice ensures a well-rounded perspective. Independent financial advisors can present a wide range of investment and savings products, ensuring you find the best fit for your goals.

Consulting an independent advisor provides valuable insight into diverse options, helping you make informed decisions tailored to your financial needs.

For more information on the services offered by Alpha Wealth see www.alphawealth.ie

ABOUT ALPHA WEALTH

Alpha Wealth is an impartial financial advisory company that aims to simplify finance for individuals, families, and companies.

Alpha Wealth provides pension, savings, and protection advice and empowers people to achieve financial freedom through personalised financial solutions.

Headquartered in Little Island, Cork, with offices in Cork and Dublin, Alpha Wealth is supported by a team of more than 10 qualified financial advisors with over 20 years of valuable experience in financial advice. All Alpha Wealth Financial Advisors hold QFA qualifications and operate on a non-commission basis, so you can trust their unbiased advice.

ABOUT THE AUTHOR

Nick Charalambous, Managing Director, Alpha Wealth, has a Cypriot background and was raised and educated in London.

He has worked in investment and private banking for some of the biggest banks in the world.

With over 25 years of financial services experience in Cork, primarily as a financial advisor with AIB and Ulster Bank, Nick has built up an extensive knowledge of the financial services environment, which he shares with his clients in many areas of personal finance.