Do term deposit accounts provide any real value for money at the moment? For the higher rate tax payer, the best term deposit is 1% tax-free with An Post. For example, lodging €50,000 for five years will produce a return of approx €2,500 over the 5 year period.
CPI statistics indicate that inflation is running at negative rates at the moment (although the factors that make up the cost of living are a bit ambiguous e.g. mortgage repayments etc.).
In counterpoint, lodging €50,000 in a bank account at 1%, the higher rate tax payer will pay DIRT at 41%, PRSI at 4% (plus USC will probably take another chunk).
Investment in rental incurs a tax of approx 51%.
Is the stock market the only show in town?