Advice on Savings

[rosboy]

Hi all.
Looking for a little advice.

I currently use Revolut and AIB for my banking.

I'm trying to put money aside every month to save for a few things:

1. a trip to Lapland in January 2026 (about €3000)
2. A car in about 3 years (€7000)
3. A lump sum of €30,000 (as soon as I can after the above.

I'm hoping to put away about €150 per week.

I was planning to regularly invest in EFTs of the the robo-advisor with Revolut, but I've seen some people say tax implications mean these aren't ideal.

Has anyone any thoughts on a good approach to achieve my goals I.e using EFTs, savings accounts, etc.

Or maybe I would invest in a crypto presale and just retire as a millionaire at the end of the year?

 

[Knuttell]

Open N26 account, you'll get 2.8% interest on the standard account.

 

[rosboy]

Open N26 account, you'll get 2.8% interest on the standard account.

Thanks Knuttell. Revolut have a savings account that gives 3.5%. they will deduct tax at source, so it ends up at about 1.8% net after tax and service charges.

If I go with the 2.8% at N26, I need to declare the interest on my tax returns and pay 33% DIRT?

 

[Original]

You could also open a Trade Repulic account and get 4% on anything up to 50000 euro. The rate may change come summer or later, but it's a good option. Trading 212 does 4.20% but is only covered up to 20000 euro, whereas TR is covered up to 100000. Both options would mean needing to declare DIRT, and possibly exit tax for T212.

 

[Freelance]

If I go with the 2.8% at N26, I need to declare the interest on my tax returns and pay 33% DIRT?

Correct.

However if you opt for a N26 Metal A/C (chargeable), you will receive 4% gross, also subject to DIRT.

 

[rosboy]

Thanks for the feedback. All responses so far are about savings account. Is that because EFTs just aren't worth it for my situation? Or is it because I posted this in the savings section of the forum? I couldn't see a general section to post in.

 

[rob oyle]

Thanks for the feedback. All responses so far are about savings account. Is that because EFTs just aren't worth it for my situation? Or is it because I posted this in the savings section of the forum? I couldn't see a general section to post in.

Your savings over the next 17/18months (10k/150 = 67 weeks) will be put to use within the next three years - that is too short a timeline to consider risk in investments beyond a savings account return of 3/4% per annum.
After that, targeting 30k towards an unspecified goal further down the line might need to be teased out as to what you would be open to (risk & return wise) once the initial savings goals had been achieved.

 

[Philip S]

The taxation of ETF's does not make it ideal way to invest in Ireland. As Rob as said above timeline is also to short to invest in market. Alot of commentators will tell you money needs to be in the market at least 5 years. It may be a case of savings with the likes of Revolt or N26 may be the best option in the term you are looking at. Also if the 30k you are saving is emergency/rainy day fund i would not be investing this either this would be in an bank account

 

[rosboy]

Your savings over the next 17/18months (10k/150 = 67 weeks) will be put to use within the next three years - that is too short a timeline to consider risk in investments beyond a savings account return of 3/4% per annum.
After that, targeting 30k towards an unspecified goal further down the line might need to be teased out as to what you would be open to (risk & return wise) once the initial savings goals had been achieved.

That make sense. I'll look into Trade Republic for the 4%. Thanks for the advice.

 

[AndroidMan]

and possibly exit tax for T212.

What does this mean?
Is it tax liabilities from investing on the platform from cgt and dividends?
Or something else?

 

[dublinaam]

You could also open a Trade Repulic account and get 4% on anything up to 50000 euro. The rate may change come summer or later, but it's a good option. Trading 212 does 4.20% but is only covered up to 20000 euro, whereas TR is covered up to 100000. Both options would mean needing to declare DIRT, and possibly exit tax for T212.

TR Covered up to 100k but interest is only on 1st 50k so probably no point leaving more than that in

 

[fayf]

Thanks Knuttell. Revolut have a savings account that gives 3.5%. they will deduct tax at source, so it ends up at about 1.8% net after tax and service charges.

If I go with the 2.8% at N26, I need to declare the interest on my tax returns and pay 33% DIRT?

I don’t believe that's correct.

I have 1 AIB account, 1 Revolut Free Account, 1 N26 Free account.

My relatively small short term savings are all in AIB,(online saver account) under €1k per month, as they pay the most, 3.00 % Gross interest, which is a nett 2.00% after 33 % DIRT, and this is what I was paid last week, see 2nd attachment below.

Revolut pay, a “misleading” 3.49 % gross interest, but it is only a nett interest rate of 1.85 %. See 1st screenshot below.
Normally gross interest of 3.49 % interest would deliver 2.30 % after DIRT @ 33%.

N26 pay 2.80 % Gross Interest, so the nett after 33 % DIRT, should be about 1.85 %.

The additional extra annual costs, of upgrading cards with Revolut or N26, just to get a better interest rates, are not worth it if only saving a few k per annum.