According to Central Bank research released last year, households have record levels of savings with over €170 billion on deposit. Whilst this reflects a strong savings culture, much of this money is earning little or no interest! In fact, households could be missing out on up to €800 million in potential interest as inflation continues to erode the real value of their savings according to the Central Bank.
You can make your money work harder for you by setting up an investment savings account, designed to help your funds grow over time.
Here’s how we can help you make the most of your savings…
- Earn higher potential returns than standard deposit accounts over the medium to long term.
- Build a tailored investment plan that matches your capacity for risk, financial goads and time horizon.
- Protect your savings from the eroding effects of inflation.
- Take advantage of compounding growth while maintaining access to funds if needed.
- Build a long-term tax-efficient savings plan for your children or grandchildren using the Small Gifts Exemption to help with future goals such as education, first home deposit.
One of the most underused opportunities for Irish savers is the Small Gift Exemption. Each individual can gift up to €3,000 per year to another person including children or grandchildren, without any inheritance tax implications. By using this allowance strategically, Irish households can transfer savings into a investment plan for younger generations potentially lowering future inheritance tax exposure.
Its time to make your money work harder not just for you, but for the next generation too. Reach out to grainne@sunrisefinancialplanning.ie to find out more.
