Savings north or south of the border!?

R

redcassie

Guest
Hello everyone, I drop in here from time to time and have to say am humbled by the financial acumen of the responses to posts. So here's hoping someone may advise us :) I'm getting hitched next week to a Co. Armagh man and we aren't really sure what to do with our savings. Not in a position to think about purchasing a home in next two years. He pays his taxes in North I'm in the happy position of not paying any in South for the mo' (student). We've savings of about E40k between us in credit unions and banks north and south. Are we better of saving north or south do you think, am bamboozled by interests rates DIRT etc etc!! Thank you for any advice :)
 
Firstly, where do you see yourself buying eventually? North or South of the border?

You might get a better deposit interest rate in the North, and since Sterling has been falling against the Euro you'll get more pounds now than you would have done previously. Of course it's possible that Sterling might continue to get cheaper meaning you'd see your savings eroded if you view them from a Euro point of view. Are you prepared to engage in currency speculation?

You could always hedge and split the money 50:50 either side of the border.

But if you know where you eventually want to buy a home that might be the best place for your deposit.

I'm not sure of the tax implications of cross border saving and this might be the deciding factor.
 
Hi Sarsfield, thank you for the reply, I hadn't even considered the currency impact over time! I guess 50:50 is best bet and eliminates any tax issue! Cheers C
 
There are also several existing threads on the topic/issues of living in one jurisdiction and saving in another jurisdiction/currency region which might be worth searching out and reading.
 
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