Advice on choosing the right savigs account

[mihaela]

Hello everyone,

I am hoping for a bit of advice if anyone has a spare moment. I have opened a on line savings account with Ptsb back in January 2018. I started with 8k deposit and i have monthly topped it up to now 18k, going to 25k after my Xmas bonus.
I remember at the time of opening the account that the return was 0.05% and they did tell me that this was variable.
I have noticed in the morning that for the last 10 months i seem to have earned a whooping 57c ). I tried to get advice from one of their financial advisors but they weren't available.
I am looking too see if there is a better option for me out there or this is just what Ireland has to offer. I would like to stay with a flexible account ( i know this repays less) as i am due to go on maternity leave in a few months. I don't think i will need to touch the savings, but i'd like to have it available for peace of mind.
Thank you in advance

 

[dub_nerd]

Your total interest so far should be around five euro. They may only credit it annually or at other intervals. Either way, the phrase "it's not going to break the bank" is apt, as the interest rate is as close to zero as makes no difference.

You could have a look at regular saver accounts, which pay a higher rate but with various restrictions. Typically there is a limit on initial lump sum and monthly deposit, the term is limited to one year, and there may be limits on withdrawals and many other restrictions (which you should read carefully). At typical rates of 1%-2% the total annual interest is therefore often limited to €50-€100, which may not be worth the administrative hassle or the withdrawal restrictions if they don't suit you.

AAM's general savings best buys are here. It is fair to say there is no easy way to earn money from deposits as rates have been in the basement for a long time.

 

[Lightning]

You can do much better than having 25k earn 0.05% AER variable.

The best option would be to open a KBC Extra Regular Saver which pays 2.25% AER variable. You can deposit 10k at the start and then drip feed in 1k per month. The catch is you need to also open a KBC Extra Current Account but there will be no fees if you do not use your card and if you deposit at least 2.5k per month into your KBC Extra Current Account.

If that is too much hassle for you, given that you are a PTSB customer, you could open a PTSB Online Regular Saver which pays 1.00% AER variable. You can do this inside your existing PTSB online account. Drip feed at 1k per month. You could also open a KBC 21 Day Notice Regular Saver which pays 0.90% AER variable and also drop feed 1k per month into this account.