Uncertain Where to Save

[heisenberg]

Hi. I am in my early twenties, recently out of college, and for the past year I have been saving in the regular savings account with AIB. The year of high interest rate (initially 4% but now 3.75%) is about to revert back to 0.75% I believe.

It's not a large sum of money, but I am unsure as to what to do with it now. I already have a months worth of wages in state savings (a kind of emergency fund I guess).

With the way the economy is at the moment I do not know how long I will be able to keep this job. I believe I have job stability, but just in the short term. As to what I am saving for - nothing in particular. I've always been taught to save. The only big expenses I forsee are holidays or if I have to emigrate.

Can anyone recommend the best option for my savings? I apologise if I'm in the wrong forum.

Thanks.

 

[Lightning]

Hi. I am in my early twenties, recently out of college, and for the past year I have been saving in the regular savings account with AIB. The year of high interest rate (initially 4% but now 3.75%) is about to revert back to 0.75% I believe.

Correct. Close the account.

It's not a large sum of money, but I am unsure as to what to do with it now. I already have a months worth of wages in state savings (a kind of emergency fund I guess).

Which State Savings product?

With the way the economy is at the moment I do not know how long I will be able to keep this job. I believe I have job stability, but just in the short term. As to what I am saving for - nothing in particular. I've always been taught to save. The only big expenses I forsee are holidays or if I have to emigrate.

Can anyone recommend the best option for my savings?

Sounds like you need an instant access account, if the future is very uncertain for you?

Would the KBC Smart Access account @ 3.25% suit your needs? Have you read the best buys?

 

[heisenberg]

Correct. Close the account.

I'm not exactly sure how that works. If I close my account before the interest return date (October), does my account remain open until that date and I remove the funds?

Which State Savings product?

I have my money in Saving Certificates. One year in at this stage.

Sounds like you need an instant access account, if the future is very uncertain for you?

Would the KBC Smart Access account @ 3.25% suit your needs? Have you read the best buys?

I regularly read the best buys. I was considering the one year fixed account in KBC at 4.10%. I believe you can withdraw a certain amount in that also?

Thanks

 

[Lightning]

I'm not exactly sure how that works. If I close my account before the interest return date (October), does my account remain open until that date and I remove the funds?

You should get accrued interest to date on closure date.

I regularly read the best buys. I was considering the one year fixed account in KBC at 4.10%. I believe you can withdraw a certain amount in that also?

In the KBC Top Up account, you can withdraw 25% of your initial deposit without penalty and more subject to a penalty.

 

[gbh2930]

You should be saving as part of an overall money makeover plan. For example:
daveramsey.com/new/baby-steps/

i.e. Step 1 is to use whatever savings you have to set up a €1000 emergency fund in the highest earning instant access account you can find. Then move on to step 2 etc

His book "The Total Money Makeover" is very good & will give you an overall plan for your savings

Theres also a money makeover forum elsewhere on this site if you are looking for wider guidance for savings