Making Your Savings Work Harder

When it comes to managing your money, it’s not just about saving—it’s about making sure those savings grow. Here’s a simple guide to help you take smarter steps with your finances:

1. Your Savings Might Be Losing Value

As of March 2024, Irish banks hold over €155 billion in deposits, but the interest earned on that money is tiny, especially after taxes. Add inflation into the mix, and the buying power of your savings drops over time. If you’re only keeping money in the bank, it might not be working as hard as it could. 

2. Keep Cash for Emergencies, But Not Too Much

It’s always good to have a safety net—money you can quickly access for unexpected bills or opportunities. But once you’ve got enough for emergencies, it’s worth looking at other options to make your money grow. 

3. Safe Ways to Save in Ireland

Ireland’s Deposit Guarantee Scheme protects up to €100,000 per person at each bank, so your money is safe there. If you receive a larger sum, like an inheritance, €1 million is protected for six months to give you time to decide what to do. Beyond that, government-backed options like the National Solidarity Bond and Savings Certificates offer secure, tax-free returns, though you’ll need to lock your money away for a few years. 

4. Invest for Growth

If you’re ready to aim for higher returns, the stock market is worth considering. While it comes with more risk, managed funds can make investing simpler by spreading your money across different types of investments. Think of it as putting your eggs in lots of baskets instead of one. 

5. Mix It Up for Security

The secret to smart money management? Don’t bet everything on one option. A mix of liquid savings, secure government bonds, and managed funds can help you grow your wealth while staying protected from market ups and downs. 

6. Get Some Guidance

If you’re unsure where to start or how to balance safety and growth, speaking with a financial advisor can make all the difference. They’ll help you build a plan that fits your goals and gives your money a chance to do more for you. 

By making small, thoughtful adjustments to how you save and invest, you’ll be setting yourself up for a more secure and rewarding financial future. It’s not about working harder—it’s about letting your money do the heavy lifting! 

Source: Central Bank Money and Banking Statistics Report 2024