A little over 12 months ago interest rates of over 3% were available for fixed cash deposit accounts in Ireland. DIRT rates were at 33% and in certain financial institutions there was a government guarantee on cash deposits without any upper limit on the fund level protected. Since then we have seen the ending of the Irish Government Eligible Liabilities Guarantee (ELG), an increase in the DIRT rate to 41% (+4% PRSI) and a significant reduction in deposit interest rates available to savers.
Savers are now being forced to look elsewhere for a home for some of their cash if they are to receive a reasonable level of real investment return over time. We have been contacted by a number of our clients who are looking at alternative options for some of their cash deposits. There is no short and easy answer to the question of “where should I invest my money” as each person is unique with different personal and financial circumstances. Each individual has different investment objectives, attitudes to investment risk and investment time horizons.
As interest rates continue to fall and DIRT rates at historically high levels, investors will need to take on more investment risk if they are looking for greater investment returns (or even returns similar to interest rates available up until relatively recently). Getting appropriate advice in the context your circumstances and objectives is essential before any investment decisions are made.
The team at Opes Wealth Trust is happy to discuss any queries or options you have relating to an appropriate investment strategy.