The big news this month is finally some detail on the new State Savings and Investment Account. Simon Harris has set out how it will work, though the numbers that really matter are being held back until Budget Day on 6 October. This edition covers what we now know, why your deposit account is quietly the story of the year, the surge in people switching mortgages, and a quick look at markets. Plain English, as always.
After more than a year of talk, we finally have the shape of it. The account is designed to get ordinary people investing rather than leaving everything on deposit. Here is what has been confirmed:
| Feature | What was announced |
|---|---|
| Who | Any Irish tax resident over 18, one account per person |
| Tax | A tax-free threshold, then a low flat-rate annual tax above it |
| Deemed disposal | Will not apply, the big change from current fund rules |
| Access | No minimum lock-in; withdraw when you like |
| Contributions | No minimum, but a maximum annual limit will apply |
| What you can hold | Shares, bonds, funds, ETFs and insurance products (no crypto, derivatives or cash) |
| Timing | Key numbers on Budget Day, 6 October; accounts open in 2027 |
The removal of the 8-year deemed disposal rule is genuinely significant, it is the single biggest thing that has put people off investing in funds here. Scrapping it inside this account is a real step forward.
Two things will decide whether this is any good, and neither is confirmed yet. First, the numbers: the tax-free threshold, the flat rate, and the annual limit, all held back to Budget Day. Second, fees. A low tax rate is easily wiped out by a high product charge, and that is where ordinary savers get quietly hurt. The Green Party has also warned the flat-rate design could tax you even in a year your investment falls. We will dig into the fee question in a dedicated piece before the Budget.
Our view: the direction is right and overdue. But do not wait for 2027 to start investing well. The most tax-efficient tool in the country already exists and needs no new law, a pension. Start there.
Talk to us about investingThe reason the Government is bothering with all of this is sitting in plain sight. New Central Bank figures show Irish households hold about €177.8 billion in deposits, and a striking €150.5 billion of that is in overnight accounts earning just 0.14%, while inflation ran at 3.4% in July. In other words, the great bulk of the nation's savings is going backwards in real terms every single month.
Brokers Ireland made the point sharply this month: most Irish "wealth" is tied up in the family home, the better-off already hold shares and funds, and the new account has to be simple and genuinely open to average earners to make any difference. They also called, rightly, for the deemed disposal rule to go across the board, not just inside the new account. The lesson for you is the same either way: cash has a job (your emergency buffer), but it is not a long-term home for serious savings.
Review where my savings sitMortgage switching has jumped to its highest level since records began in 2011. Remortgaging and switching activity rose 71.6% by volume and 81.1% by value versus a year earlier, to around €285 million in a single month. The driver is simple: with at least one more ECB rate rise expected this year, people are locking in fixed rates now, while they still can.
First, rates still start from around 3%, so if you are sitting on an older or variable rate, the saving can run to thousands over the term. Second, if you bought two or three years ago, rising property values may have moved you into a lower loan-to-value band, which can unlock a better rate again. Some switchers are also releasing equity to fund home improvements.
If you are on a variable rate, or your fixed rate ends in the next year or so, this is worth reviewing now rather than when the letter arrives. Every case depends on your balance, term and circumstances, so it is worth doing the sums properly.
Review my mortgageEquities have had a strong year, but the mood is turning cautious. The focus has shifted to bonds and government borrowing, with worries about US public finances and a wave of debt issuance tied to AI infrastructure spending pushing long-term yields up, the US 10-year sits near 4.7%. US national debt also crossed $40 trillion for the first time this month, which keeps the fiscal question firmly in view. Inflation is proving sticky: the US Federal Reserve's preferred measure is running around 3.3%, still well above target, and Fed officials struck a cautious note at the Jackson Hole gathering, trimming hopes of near-term rate cuts. NVIDIA delivered another enormous set of results (quarterly revenue above $96bn), but even that could not lift the mood for long.
Oil is trading around $90 a barrel (Brent), with continued disruption to shipping through the Strait of Hormuz keeping prices elevated. And a seasonal note worth keeping in mind: markets have historically been more volatile through September and October. With sticky inflation, rising bond yields and plenty of geopolitical uncertainty still in the mix, a bumpier autumn would not be a surprise. None of which changes the plan for a long-term investor, it is a reason to be diversified, not a reason to react.
A cooler growth outlook at home. Bank of Ireland trimmed its Irish growth forecast this month, though it still expects a rebound, a reminder that even a strong economy is not immune to the global backdrop. Business investment is holding up, with a notable jump in spending on machinery and equipment (per Business Post).
Budget 2027 is the one to watch. 6 October will bring the savings-account numbers, an expected income-tax package, and the detail behind the headlines. We will translate it into plain English for you on the day.
Whether it is the new savings account, your pension, your mortgage or where your cash is sitting, we give independent, Irish-specific advice built around you.
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