Individual risk tolerance is a critical aspect of any decision involving money – savings and investments (deposits) are no different.
Depositors do not give sufficient consideration to the risk that the institution they have chosen to protect their money might go bust. The headline example of the demise of Anglo Irish Bank is a prominent Irish example where depositors’ money was placed at risk. However, there are lots of other examples throughout the EU and further afield.
The Central Bank of Ireland monitors the solvency of Irish financial institutions including banks; insurance companies; building societies and credit unions. It has devised a safety net that offers protection to depositors in Irish financial institutions. It is called the Deposit Guarantee Scheme and we describe it below.
There are numerous savings and investments products offered by financial institutions that vary in a number of ways. The choice can be daunting. Some savers will be lured by a high interest rate but will fail to notice the strict conditions that apply when they need to access their funds in an emergency. Other depositors will make a shrewd choice initially but then become less attentive and allow their funds to sit in low-interest bearing accounts for long periods.
As savings and investments (deposit) rates are constantly changing please be sure to check your bank statement and call us to see the best rates we can access for you. Depending on your circumstances whether it be a lump-sum deposit or regular saver we can advise you on the best rates that are currently on offer from the various institutions.
If you would like to examine the product comparisons available to depositors and savers please feel free to contact us for impartial advice.