Saving is important. It allows you to build a fund to pay for any unexpected expenses, and by saving for big purchases instead of borrowing, you can avoid paying interest. Building a consistent savings habit can also help you if you’re considering

Before you start to save, decide how much you can afford to put aside each week or month and for how long. To do this look at your income, what you spend each month and what you owe on any loans. Our useful budget planner helps you to see how much you will have left over to save or invest. You can then set about starting your savings plan.

Clear your debts first

Paying extra off outstanding loans or clearing your balance on your credit card will save you money. Paying extra off your loans means you will pay less interest, and helps you to clear your debts faster. It can make more sense to clear debts, rather than hold on to savings, if the interest rate on your loan is higher than the rate you are earning on your savings.


Seán has a €10,000 loan over four years, at an interest rate of 10.1%. Six months after taking out the loan he gets a pay rise of €100 a month and isn’t sure what to do with it.

⋅ If Seán puts an extra €100 a month towards the loan, he would save €583 in interest and pay off the loan 13 months quicker.

⋅ If he saves that €100 per month in a savings account with 3% AER, he could earn €160 interest over the 3 and a half years. This €160 is also subject to Deposit Interest Retention Tax (DIRT) tax.

In this example, putting the extra €100 a month towards the loan would save Seán around €475 when tax is deducted.

Use our loan calculator to see how much you could save if you reduce the amount you borrow. Then compare it to how much you would earn if you saved your money instead. You should also check if your loan has any early repayment fees.

Ways to save

The Deposit Guarantee Scheme

The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits. The DGS is administered by the Central Bank of Ireland and is funded by the institutions covered by the scheme.

The DGS protects:

  • Depositors if a bank, building society and or credit union authorised by the Central Bank of Ireland is unable to repay deposits
  • Eligible deposits up to €100,000 per person per institution
  • Current accounts, deposit accounts, share accounts in banks, building societies and credit unions

The Irish DGS protects deposits held at EU branches of authorised Irish institutions. Deposits held with credit institutions that are authorised in another European Economic Area Member State are covered by that country’s deposit guarantee scheme.

For information on how the scheme works and what institutions are covered, visit the DGS website.

Last updated on 16 October 2023