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Finance Induction Overview

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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