When we look at the organizations that help us manage our money, most of the time, we’re thinking of either a traditional bank or some form of one, but there are a wide variety of financial organizations in Ireland, and they offer a lot of services that might surprise you!

What are some of the options we have for places where we can manage our money?  There’s always the traditional bank, which offers various kinds of savings and current accounts.  There are credit unions, which are community based coops, or groups, that offer services to help you take care of your money.  You might find a coop that serves the needs of employees of a big company, or a teacher’s union, or a region. A building society is another sort of a bank with limited services for its members. All of these have options for managing your money.

There are over 60 banks alone in Ireland, in addition to all the other institutions.  How do you know which one to choose? You might do some research to find which one offers the best interest or other services, or you might pick the one that has a branch near your house, so you don’t have far to go to get to an ATM.

Those are some of the more common, traditional ways to manage your money, but there are other choices, too.  There are banks that don’t have physical branches at all, like Orange Bank, operating completely online, and currency exchange companies that offer bank accounts too, like Transferwise, which lets you send and receive money all over the world with very low fees. Even some retail stores offer banking and insurance products. 

There are also companies that will help you invest in the stock market, though the risk there is considerably higher.  You can spread out your money across a number of stocks through a mutual fund run by a financial advice firm, or you can invest in individual stocks that you like for your own reasons.

And then there’s cryptocurrency.  You might have heard of Bitcoin, which is a kind of digital currency that is still developing. This system enables you to send and receive payments without using a central authority, such as a bank or payment gateway. Instead, payments are created and held electronically, and all transactions are tracked through a type of electronic ledger system.

Once you decide where to keep  your money, what can you do with it once it’s there, and what other services are on offer there?

You can keep your money in a current account if you need to be able to access it quickly.  Most of the time, you’ll get a debit card as well, which you can use to buy things from practically any retailer.  A current account is convenient, but doesn’t do much in terms of increasing your money.

And of course there are also savings accounts, where you generally leave  your money alone so it can grow. You also get more interest than in a current account, but even then it isn’t much.  What if you want more?

You might get a Christmas savings account.  This type of savings account gives a higher interest rate, but you don’t have access to the money until a certain time (usually late November). Another option is the Installment Savings account. With this type of account, you make regular monthly payments for a year, and then reinvest for five more years.  This is tax free for residents of Ireland, and has a total return of 5.5%.

Bonds are another option for earning better interest on your money. Of course, the trade off is that you have to leave it alone for a longer period of time to get the full benefit.

Ireland State Savings products are placed directly with the Irish Government, and are protected by the State, with no fees, sales commissions, or transaction charges.  There are Savings Certificates and Bonds, which have different rates and time frames.

For example, the 10 Year National Solidarity Bond has a total return of 16%. And yes, if you need the money before 10 years has passed, you can access it (and any interest already earned) with seven days notice.  Of course, doing so means that you wouldn’t get the full benefit.

And then there are Prize Bonds, which have been offered since 1957.  These cost a minimum of €25 (which gets you four units). They are entered into a weekly drawing with prizes ranging in value. Weekly prizes range from €50 to €50,000; twice a year, a €1m prize is awarded. Prize Bonds never expire, and the winners are kept confidential.

Those are your most common savings options.  What if you want to borrow money? Many banks offer credit cards. Credit cards might look like debit cards, but they’re very different.  You use them to make purchases, but the limit of what you can spend is based on a pre-set amount instead of how much you have in your current account.  Also, credit cards charge interest, sometimes very high interest. If you “carry” debt instead of paying it off every month, that interest can grow to uncomfortable amounts. We’ll talk more about credit cards in another lesson.

You can also apply for a loan if you need a bigger amount all at once. This involves you filling out forms and the bank deciding if you are likely to repay the money before they give you anything. Again, you have to pay interest, so this is a place to proceed with caution.

So banks and other financial institutions are places to keep your money or borrow money.  Is that all they do? Not even close.

Many financial institutions offer online banking, which is more than just checking your balance with your phone; you can use these services to pay bills online as well.  Currency exchange and money transfer are other services you can find at many financial institutions.

Some institutions, especially credit unions, offer Life Savings insurance. This is life insurance coverage provided for all eligible members as an additional incentive to save regularly and maintain savings with the credit union. The insurance is underwritten by credit unions’ own insurance company.

Financial planning and business finance advice are other services frequently offered at many financial institutions. These can be very helpful if you’re starting a business, but they aren’t free.

Some organizations offer services to benefit the community, For example, An Post offers people who are homeless an address  so they can more easily make medical appointments, correspond with children’s schools, or apply for jobs. People with no fixed abode will be able to use the service through a post office of their choice.

There are masses of options for where to keep your money and how to manage it once it’s there.  What you end up choosing will depend on your priorities and goals.