As the economy continues to recover, many consumers are starting to have a few bob left over at the end of the month. The question now is what to do with this extra money. In the past, it was diverted into a deposit account to keep it separate from the day-to-day spending. With interest rates hovering around 0%, this really is a questionable approach. Financial Brokers are often asked “What is the best savings plan for my money?”

The answer needs careful consideration.

What are you trying to achieve with your savings – are you saving for a rainy day or have you a specific goal in mind, to fund education in future years or buy a new car? What are your time horizons or do you have any? What is your appetite for risk?

A deposit account is a suitable vehicle if you are putting money away in the very short term. It is accessible and secure (at least up to €100,000). If your target is to save for a number of years, deposit accounts come with a price. If price inflation exceeds the interest rate payable, the value of your money will fall all the time.

You won’t be able to afford in the future the things that you can just about afford today. Consider your time-frame very carefully.

A Financial Broker will help you identify your own tolerance for risk and will then help you identify how much risk is appropriate for you within a savings plan. Once you know the appropriate level of risk, they will then find the best savings plan to meet your specific needs which may even be a deposit account. The one thing you can be sure of is you are getting the right savings advice to meet your specific needs. Understanding what you are trying to achieve with your money is at the heart of this. When you are clear on the end goal for your money, your time-frame and your appetite for risk, you can start planning with confidence.