There comes a stage in life when your relationship with money changes. The focus shifts from building wealth to protecting it. From taking risks to seeking steadier ground. And from long-term growth to reliable income and peace of mind.
Yet despite that shift, many Irish savers still have large portions of their cash sitting in accounts that pay little or no interest.
Irish household deposits reached €170.3 billion last October. A significant share of that continues to sit in overnight accounts. These are convenient, certainly. But they often deliver returns close to zero. Over time, and particularly in periods of inflation, that can quietly erode the spending power of money that may have taken decades to accumulate.
Eoghan O’Hara, country manager at Raisin, believes many savers simply have not revisited old habits.
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“For years, leaving money in an easy-access account felt like the sensible default,” he says. “But the reality is that better rates have been available, particularly on short-term fixed deposits. Many people are missing out simply because they have not reviewed where their savings are held.”
Short-term fixed deposits, typically lasting three to 12 months, have grown in popularity over the past year. However, they still represent a relatively small portion of overall household savings.
For those thinking about retirement income, or already drawing from their savings, even a modest improvement in interest can make a noticeable difference over time. Revisiting your savings strategy does not mean locking everything away for years.
One practical approach is to keep a comfortable buffer, perhaps two to three months of essential expenses, in an instant-access account. Funds beyond that could be placed in shorter-term fixed deposits, allowing you to earn more while still maintaining regular access as each term matures.
“It is not about taking on additional risk,” says O’Hara. “It is about ensuring that money which does not need to be immediately accessible is earning a fair return.”
In an environment where living costs remain elevated, making savings work a little harder can help protect financial independence.
For those who prefer to test the waters, short-term options can provide a gentle introduction. Raisin Ireland’s Starter Account, for example, offers 3.10 per cent annual equivalent rate for three months on deposits between €1 and €100,000. There are no fees, and once the three months end, savers can withdraw their money or choose another product. Managed securely online, it allows customers to compare deposit accounts from a range of European banks in one place.
“The key is not to overhaul everything overnight,” says O’Hara. “Even small, considered adjustments can add up over time.”
For many people at this stage of life, the goal is simple: preserve what you have built and ensure it continues to support you.
A new year offers a natural moment to pause and ask whether your savings are working as effectively as they could be. In some cases, a small change may be all that is needed.
For more information, visit raisin.com
