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Roy Keane
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Originally posted by Shedite Shedite wrote:

Well the S&P has averaged about 10% over forever, pay tax on that and it's a 6% return, but you need to be longer term to ride out the highs and lows

Is it DIRT or CGT on the return? In the UK you can invest in a stocks and shares ISA , and as I understand it, is a tax wrapper, and doesn't create a liability.
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Originally posted by Shedite Shedite wrote:

Originally posted by Sham157 Sham157 wrote:

Originally posted by Shedite Shedite wrote:

Originally posted by BabbsBalls BabbsBalls wrote:

Thanks for the advice lads but to be honest I'm just curious to why interest on savings just disappeared. 

Anyone 
It's all related to Interest Rates that you hear in the media. Last 10 years interest rates dropped to 0 which meant...
- much lower interest on mortgage rates (good thing)
- much lower interest on savings (bad thing for savers, but probably the reason stocks went up so much)

It's coming back with interest rates rising tho, new bank Trade Republic offering 2% interest on your savings.
Opened a Trade Republic account earlier. Going to dip the toe into ETFs. Anyone invested anything on RTFs with TR? Ive done a bit of reading up but just so much out there I still dont know where to start.
Presume ya meant ETF's yeah? 

Great way to invest alright, pick the QQQ (Nasdaq) or SPY (S&P500) if you're going that route, they outperform all others by  fair chunk over time and are usually the cheapest. You've to pay 42% tax on your gains is the main issue.
Yeah sorry, fat thumb syndrome on the RTF bit.

Cheers for that. As I say its only a toe dip at this stage to get a bit of a feel. 
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Jack Charlton
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Originally posted by Het-field Het-field wrote:

Originally posted by Shedite Shedite wrote:

Well the S&P has averaged about 10% over forever, pay tax on that and it's a 6% return, but you need to be longer term to ride out the highs and lows

Is it DIRT or CGT on the return? In the UK you can invest in a stocks and shares ISA , and as I understand it, is a tax wrapper, and doesn't create a liability.
Depends how you invest in it. If it's in your pension, it's tax free. In a savings fund with a bank or Zurich/Aviva you pay exit tax. If you invest directly by buying an ETF it's 41%.

If you find a stock that behaves like the market you only pay 33%, a lot of people like Berkshire shares for that reason, owns a lot of Apple, Coke, Bank of America etc.
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Roy Keane
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Originally posted by Shedite Shedite wrote:

Originally posted by Het-field Het-field wrote:

Originally posted by Shedite Shedite wrote:

Well the S&P has averaged about 10% over forever, pay tax on that and it's a 6% return, but you need to be longer term to ride out the highs and lows

Is it DIRT or CGT on the return? In the UK you can invest in a stocks and shares ISA , and as I understand it, is a tax wrapper, and doesn't create a liability.
Depends how you invest in it. If it's in your pension, it's tax free. In a savings fund with a bank or Zurich/Aviva you pay exit tax. If you invest directly by buying an ETF it's 41%.

If you find a stock that behaves like the market you only pay 33%, a lot of people like Berkshire shares for that reason, owns a lot of Apple, Coke, Bank of America etc.

Thumbs Up

Will admit, I'm not a fan of taxing things like the purchase of ETF's, especially when they are generally used as a saving method for most private individuals who invest in them.
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Jack Charlton
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Originally posted by Het-field Het-field wrote:

Originally posted by Shedite Shedite wrote:

Originally posted by Het-field Het-field wrote:

Originally posted by Shedite Shedite wrote:

Well the S&P has averaged about 10% over forever, pay tax on that and it's a 6% return, but you need to be longer term to ride out the highs and lows

Is it DIRT or CGT on the return? In the UK you can invest in a stocks and shares ISA , and as I understand it, is a tax wrapper, and doesn't create a liability.
Depends how you invest in it. If it's in your pension, it's tax free. In a savings fund with a bank or Zurich/Aviva you pay exit tax. If you invest directly by buying an ETF it's 41%.

If you find a stock that behaves like the market you only pay 33%, a lot of people like Berkshire shares for that reason, owns a lot of Apple, Coke, Bank of America etc.

Thumbs Up

Will admit, I'm not a fan of taxing things like the purchase of ETF's, especially when they are generally used as a saving method for most private individuals who invest in them.
Yeah I'd love to see the end of Deemed Disposal, for average joes you'd love to see a bit of a tax break for those who try to save.

The problem comes when you get to the big guys. Lads in the US especially would have 7 figures in ETF's and basically get the gain tax free each year. Would be $100k tax free income every year. Someone working a proper days work and earning $100k income through sweat and effort gets taxed heavily on it. I'm not a fan of taxing hard work over sitting on savings funds while swanning around the country club.

There's a middle ground somewhere, but to me both all income should be taxed the same.
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Alan Kernaghan
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Looking at short term lump sum savings return options out there atm for the 1-2 year time period. Very few options, even worse returns. Best I can see is AIB fixed 12/24 month fixed term - 3% AER. Any other suggestions or options?
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Banks are fecking stealing from us for the past year with not passing on the increased interest rates on savings. And no one in power or the regulator challenging them on it. 
Then the bankers (mates of the politicians and the regulator no doubt) getting their bonuses for the profits the banks are making….based on the back of them making huge profits on the interest rate increases that they are not passing on.

I’m just using any extra money to pay off loans versus sticking them in savings. 
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Originally posted by CatalanCelt1 CatalanCelt1 wrote:

Looking at short term lump sum savings return options out there atm for the 1-2 year time period. Very few options, even worse returns. Best I can see is AIB fixed 12/24 month fixed term - 3% AER. Any other suggestions or options?
Trade Republic have 4% demand account.

Offshoot of Deutshe Bank
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if they pass on the deposit rate then it means the mortgage interest rates will go up. They pnly passed on half or less than half of the mortgage rate increases from ECB.
So do you prefer to make money from savings or pay more for your mortgage, try and find a balance and thats what they would be doing.
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What can't mortgage payers pay the going rate for their mortgages and savers get the going rate for their savings? Why should savers be effectively paying for other people's mortgages?

In the UK the Bank of England base rate is currently 5.25% and you can get over 5% annual interest in an instant access savings account from multiple providers. Close to 6% is available on a 12 month fixed rate. 

The ECB rate isn't as high as the Bank of England rate so you wouldn't expect those numbers in Ireland but bank rates should be keeping pace with the ECB rate and they're nowhere near. Then on top of that, again unlike in the UK, any interest you do earn is taxed in it's entirety. Absolute daylight robbery.
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You are taxed on your savings in the UK, but you do have a 500 or 1k interest allowance before you pay tax.
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Roy Keane
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Originally posted by Roberto_Carlow Roberto_Carlow wrote:

You are taxed on your savings in the UK, but you do have a 500 or 1k interest allowance before you pay tax.

There are also ISAs available which allow you to save up to £20,000 per year in savings or investment accounts where you don't pay tax. 
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Originally posted by You Tell Me You Tell Me wrote:

What can't mortgage payers pay the going rate for their mortgages and savers get the going rate for their savings? Why should savers be effectively paying for other people's mortgages?

In the UK the Bank of England base rate is currently 5.25% and you can get over 5% annual interest in an instant access savings account from multiple providers. Close to 6% is available on a 12 month fixed rate. 

The ECB rate isn't as high as the Bank of England rate so you wouldn't expect those numbers in Ireland but bank rates should be keeping pace with the ECB rate and they're nowhere near. Then on top of that, again unlike in the UK, any interest you do earn is taxed in it's entirety. Absolute daylight robbery.
Agree with that sentiment. Populist opinion running the show as usual. Over the course of someone's lifetime the swings in rates would probably even themselves better without such window dressing by the banks/authorities to appease the mobs.
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For cultural reasons repossessions are not popular in Ireland. As a result culturally people would prefer people stay in their homes than savers make money out of spare income.  The banks and the system know this.  This is not as much the case in the UK.  Even during the property crash here the amount of repossessions was small compared to what you would expect after such a huge property crash.  

Edited by Baldrick - 08 Nov 2023 at 2:48pm
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Originally posted by Baldrick Baldrick wrote:

For cultural reasons repossessions are not popular in Ireland. As a result culturally people would prefer people stay in their homes than savers make money out of spare income.  The banks and the system know this.  This is not as much the case in the UK.  Even during the property crash here the amount of repossessions was small compared to what you would expect after such a huge property crash.  

To be honest I think it's just an excuse used by the Irish banks to not increase their savings rates and cream off the resulting profits. It's a cosy cartel because the small number of main banks are so dominant. The UK has loads of challenger banks so if your usual bank isn't paying a good interest rate there are plenty of others you can move to instead. Mostly with ridiculous names live Beehive, Chip and Cahoot, but they do the job. Often wonder why one or two of them don't set up a small savings only operation in Ireland and shake the market up a bit.
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Originally posted by You Tell Me You Tell Me wrote:

Originally posted by Baldrick Baldrick wrote:

For cultural reasons repossessions are not popular in Ireland. As a result culturally people would prefer people stay in their homes than savers make money out of spare income.  The banks and the system know this.  This is not as much the case in the UK.  Even during the property crash here the amount of repossessions was small compared to what you would expect after such a huge property crash.  

To be honest I think it's just an excuse used by the Irish banks to not increase their savings rates and cream off the resulting profits. It's a cosy cartel because the small number of main banks are so dominant. The UK has loads of challenger banks so if your usual bank isn't paying a good interest rate there are plenty of others you can move to instead. Mostly with ridiculous names live Beehive, Chip and Cahoot, but they do the job. Often wonder why one or two of them don't set up a small savings only operation in Ireland and shake the market up a bit.

Well as a previous poster has said the banks have not passed on the interest rate hikes for mortgages like our European counterparts,  not at the same rate anyway. 

The reason other banks are not in the market or have left is for the reason I said in that it’s hard to kick people out of houses if they can’t pay their mortgage. As a result they left and also we have a state owned bank in AIB.  

Banks only really make a profit by lending at a more expensive rate then they give for savings and that difference must cover overheads/profits etc.  

Not sure how a bank could make money if they only did saving only.  How would they generate income? 


Edited by Baldrick - 08 Nov 2023 at 4:15pm
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Originally posted by t_rAndy t_rAndy wrote:

Banks are fecking stealing from us for the past year with not passing on the increased interest rates on savings. And no one in power or the regulator challenging them on it. 
Then the bankers (mates of the politicians and the regulator no doubt) getting their bonuses for the profits the banks are making….based on the back of them making huge profits on the interest rate increases that they are not passing on.

I’m just using any extra money to pay off loans versus sticking them in savings. 



No bank here has been allowed pay bonuses while the Government have had a stake in them and ceilings put on salaries too.

Before 2008 and the crash savings rates were closely inline with ECB so you would have expected them to rise again in recent times. However long term lending rates are going very low at the moment so ECB being predicted to fall so savings rates could be a mute point very soon. Another SSIA to counter inflation would be great!!
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