Saving
Interest on savings
Subtopic
Compound interest
Cannot use simple interest formula
Principal changes
Simple Interest
The number of years
Rate - Annual interest rate
Principal - The original sum saved
Principle x Rate x Time
Formula
Your reward on savings is interest and the money depends on the amount in your account
Credit Unions
Risks/Costs
Dividends are only paid if the credit union makes a surplus
DIRT
very little risk
Every €1 you save you get a one share you hold for the year, you may receive a payment called a dividend
Purpose
Suitable for people who want to save but also want to withdraw money
Members save and borrow
A co-operative organisation where a group of people save together and lend each other
An Post
Risks
DIRT is taken away from your account before any interest is added to your deposit account
Benefits
No fees or charges
Prize bonds can be cashed at any time for their full value provided you have owned for at least 3 months
All types of savings pay interest
NO fine with a seven days notice
No DIRT
Different types of accounts
Small current accounts
For people who want to save money but continue their finacial activities
Prize Bonds
People who have extra money have a chance to win substantial amount of money
Fixed term savings accounts
Want to save for a long time
Deposit account
For people who want to save but can withdraw any time they want
Monopoly
You can save in the post office
Only postal service in the country
A state-owned company
Investing
Cryptocurrency
Used for goods and services and stored in a digital wallet
Value can change over a short period of time
Can be purchased and sold using dollars, euro and other currencies
Bitcoin
A digital currency not controlled by any central bank and is transferred directly from person to person
Factors to considers before investing
What is the potential return
What is the investment period
What is the risk
Placing money in an investment fund
Buying property
Buying company shares
Using you money or savings in hope of making a profit
Savings account
Risk
May be fined if you withdraw from a fixed account early
Dirt
Benefits
Your savings are protected by a government scheme
Interest
Bank charges are not applied
Fixed term account
No access to the account for a period of time
Purpose account
Customers must give notice to the bank before accessing the account
Demand account
Access money whenever you like
Financial Institutions
Helps with the loan future if you save
These are trustworthy places to save as of interest
EBS
AIB
Permanent TSB
Credit union
Reasons for saving
Holidays
Retirement
Pensions
Mortgage
Rainy day fund
