You aren't mad, it isn't an unreasonable place to start saving. I did use the CU for saving for a deposit as it was simply convenient at the time to up an existing SO. Besides the amount I would have earned on interest was pretty paltry from anywhere else and the dividend I was being paid was reasonable in comparison (note that CUs generally do both share accounts (dividend, vote at AGM) and deposit accounts (interest)). If I was doing so today, I would probably not put it there since the return is currently pretty low. (Having said that the return to be achieved even at the best rates won't make a massive difference to your final total) Shop around, have a look at the best buys and see what banks will give you. Chances are you are going to be saving for a year or two so you can look at more restrictive fixed term accounts, I think Anglo give 5.5% on a monthly deposit up to €1000 as long as you don't touch it for six months. If you are worried about the safety, move the funds after that period and build again.