Shutting savings policy and opening a savings account

M

monnigblower

Registered User
Messages
16
Hello,

The purpose of this note is to ask opinions on savings policy I'm contributing into for my daughter's eduction in years to come. I'm presuming this is not an 'out of bounds' discussion and apologies if it is. Anyhow I've recently had to pay tax on a savings policy as it's the eight anniversary. I contribute monthly 100 Euro. On looking at sheet I received in the post I've contributed 8197 Euro and it's now worth 8370 Euro after tax. While I'm grateful I managed to save the cash in the first place that's an increase totalling 2% over seven years. What would the pro and cons of shutting this down and just continuing it in a bank savings account that pays 2 or 3% per annum and has no charges? The latter looks very tempting now (An Post might be an option) but I've heard before that savings policies do better in their "later years". I beginning to have my suspicions on that one though. I'd expect to have another eight years to run with this.

-M
 
Thanks for the reply. It was a Quinn Life policy, spread over various portfolios - South America, UK, etc but no Irish for the last while - and yes presumably this would be an investment policy. Recently it was taken over by Irish Life if I have it correct so I've received some correspondence about it recently, one item of which had to do with paying tax.
-M
 
There is no simple answer as to whether you are better off with deposits or investment products.

Some people say that as deposits rarely beat inflation, that you are better off with investment products. Also, over the long run, in some specific assets, investments generally, but not always, return more than deposits.

On the other token, deposits give a near-guaranteed, peace of mind, secure return.
 
Excluding the huge market falls in 2008 what has the average annual return been since then on your different portfolios, typical managed funds returned double digit growth over the last twelve months, you will not get that type of return in a deposit account. what charges are you paying, premium charge, annual management charge etc as this will have an impact on overall returns also.

Other that this what Ciaran says above about deposits is a valid point
 
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