As you are probably aware Budget 2014 has increased the Deposit Interest Retention Tax (DIRT) on all savings or investments to 41%. This comes at a time when interest rates are low and it is extremely hard to get a decent return (check to compare saving products).

It worries me that you may be encouraged to take a bigger risk with your saving and investment products. It may be sold to you under the premise of beating inflation. But buyers beware, as most of these higher risk products carry additional charges such as levies and management fees. Please feel free to contact me for some advice before you set up a saving or investment product.*

Saving Tip

You may be able to claim an exemption from paying some or all Deposit Interest Retention Tax on your child’s savings if they have special needs. Check out for more information. Alternatively, if you email me I am happy to send you on the relevant form to complete. As you can imagine, with DIRT at 41% this is a significant boost to your child’s savings.

However, before you start any saving plan always have your personal loans cleared. The reason for this is the interest you have to pay your lender will be far greater than the interest you will receive from any savings you may have. Your priority should be to clear loans first then redirect all your money into savings.


Any money you save in your child’s name will be taken into consideration when they apply for any means tested payments such as Disability Allowance or Medical Card.

The key to a secure financial future for your child will be highly dependent on the percentage of your child’s current entitlements you can save for their future. There are a few option available to parents that will provide a solution but it will depend on each parents specific set of circumstance.

Fund Your Special Child’s Trust From Entitlements Today – For A Brighter Tomorrow

*Allan Mathew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advise on savings and investments.