• A secure savings account suitable for long-term saving. A lump sum is invested for a fixed term, e.g. three or five years.
• Minimum investment is €6,000, maximum investment is €25,000 • Offers a higher fixed-rate of interest. Any interest earned (up to €480 on a three- year account and €635 on a five-year account) is not subject to DIRT. Interest earned above these amounts is subject to DIRT at 41%.
• Money must remain in the account for the duration of the term, if withdrawn early, there will be a penalty on the interest paid
? Name two saving schemes suitable for a low-income family. (6) OL
Describe one saving scheme you would recommend to a young person who is saving to buy a car. Refer to four of the following: • name of institution • type of account • risk
• ease of access to funds • interest payable. (20) OL
Recommend one type of savings scheme suitable for a family. Refer to: • name of institution • type of savings scheme • interest paid
