Expect a raft of 4 year deposits

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Im not criticising it, Im just not sure its going to encourage 'a raft of 4 year deposits' on its own.
 
Agree with Ihana

People should not tie up their money for 4 years to save 8%.

However, maybe the marketing people in the banks might persuade them to do so.
 
This is just reducing the rate of DIRT so that this year your net interest is pittance but next year you get pittance plus - hardly flood gate opening
 
I agree there will not be a torrent of money going into genuine 4 year deposits. But surely deposits should be structured as 4 year instruments but with early access. I presume exit tax is similarly reduced and as life assurance savings are for the longer term it effectively reduces the exit tax to 33% for new life assurance savers.
 
Duke of Marmalade said:
I agree there will not be a torrent of money going into genuine 4 year deposits. But surely deposits should be structured as 4 year instruments but with early access. I presume exit tax is similarly reduced and as life assurance savings are for the longer term it effectively reduces the exit tax to 33% for new life assurance savers.
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Was there an announcement on exit tax? I missed that.
 
Duke of Marmalade said:
I agree there will not be a torrent of money going into genuine 4 year deposits. But surely deposits should be structured as 4 year instruments but with early access. I presume exit tax is similarly reduced and as life assurance savings are for the longer term it effectively reduces the exit tax to 33% for new life assurance savers.
Click to expand...

Different taxes Duke. DIRT used to be at 33% and the exit tax for life assurance products was at 41%.

Seeing as we're now flush with money again, did he say he'd stop taxing long term savers with the deemed distribution?

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
In the very beginning exit tax was 3% bigger than DIRT to allow for the "gross roll-up". Then a few years back he equalised the two rates "to encourage long term savings". I presume that when the details are thrashed out the exit tax will follow the DIRT rate.
 
The influx of Budget summaries into my inbox from the life companies have all said no reduction of exit tax. I'm sure there will be lobbying going on to have this reduced too. The devil is always in the detail which will be released on 20 October.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
That all makes sense, Steven

Presumably, you are advising all your clients to dash to the bank this morning to avail of the massive DIRT reduction? Passing my local bank earlier on my way to work, the queue was already around the corner!!!!
 
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