Money Market Funds

[dublinaam]

Is it possible to invest in daily money market funds where you can just roll your deposit and take advantage of the interest rates closer to 4%?
I looked at Trade Republic and Lightyear but they don't seem to offer them

 

[Corola]

Bear in mind funds are taxed at a higher rate than deposits, and charge fees.

4% in a MMF taxed at 41% is 2.36% net before fees

3.66% on deposit with Advanzia taxed at 33% is 2.45% net with no fees

 

[Lightning]

This ETF ( https://www.trading212.com/trading-instruments/invest/CSH2.FR ) tracks the Euro short term index so the return is about 3.60% (3.65% less 0.05% TER) and free to purchase via Trading212. But 41% tax.

 

[ashambles]

For anyone filling in a Form 11 or have 5k+ in interest income it's 37% (PRSI is added) tax, e.g. Advanzia 3.66% taxed at 37% is 2.30%.

 

[ashambles]

From messing around on a spreadsheet - hopefully someone will check.

Ignoring fees, you'd be better of paying 41% tax over ~5+ years if it's taxed at exit or deemed disposal if the interest rate is just 0.1% higher than the same savings taxed annually by DIRT@37%.

(That'd be assuming the DIRT is deducted from the account annually - reducing the compounding - and it's 33%+4% which won't always be the case)