How will the State's savings & investment account work?
The initial details of a State-backed savings and investment scheme have been announced, writes David Murphy, with the Government hoping it will encourage more people to save their money.
The State is developing a savings and investment account initiative to encourage individuals to save for the future. The new accounts will offer tax-free returns on investments up to a certain limit, making them more attractive than traditional deposit accounts that earn negligible interest. Currently, Irish investors pay high taxes on any gains from shares and funds, so a tax-free return is an enticing prospect.
The scheme will have a tax-free threshold, low tax rate, and an annual contribution limit, all to be announced in the upcoming October Budget. Investors must be over 18 and possess a PPSN, and each individual will be restricted from owning multiple accounts. To be eligible, individuals must reside in Ireland. While the scheme will not allow access to risky or complex investments like cryptocurrencies, it aims to make investing simpler and more accessible for all.
The European Union has initiated a Savings and Investment Union, and Ireland is following suit. Financial literacy is a key component of the initiative, as the government wants to empower people to understand financial markets. The accounts will be offered by financial institutions, which will charge fees. However, to benefit from this scheme, individuals must have funds to spare.
Written by urgent.news from RTE News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
