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Online Banking – Who is winning in the Irish Market

Over the last few years there have been huge advancements in online banking in Ireland and there will definitely be more to come as banks adapt to the changing needs of Irish consumers.
It is interesting to study the Irish market and see that some banks have clearly adopted online banking more than others with some players’ miles ahead of others.

AIB has introduced several new features to its online banking such as its personal finance platform my money manager, emortgage portal and online personal loan facility.

The AIB my money manager is a very useful personal finance tool that allows users to create budgets and track spending in your AIB accounts against the budgets you have set while also categorising your spending into entertainment, rent, food etc.

AIB also has introduced an emortgage portal that allows users to get sanctioned in principle online for their mortgage before meeting with an adviser.

Another feature AIB has introduced is an online personal loan facility that allows AIB account holders to get online approval and drawdown of personal loans in less than 3 hours for amounts between €1,000 – €30,000. Once approved the money is transferred immediately into your account without any need to visit a branch or talk to an adviser.

Permanent TSB has also introduced an online personal loan facility that allows account holders to get online approval and drawdown within minutes of amounts ranging from €1,500 – €15,000 once you are a Permanent TSB current account holder and you have your salary paid into that account. Once approved for the personal loan you can transfer into your account at any time over the next 90 days.

Permanent TSB have introduced a cashback explore current account where you can get cashback for using this account – however this is capped at a maximum of €5 a month which isn’t much considering monthly bank charges are €4.

Ulster Bank have introduced a quick quote online system that allows consumers to get a quote for a personal loan online for amounts from €2,500 to €40,000 in minutes however to draw down the loan the customer will have to meet with an adviser.

KBC also have a facility to start a loan application for personal loan amounts greater than €5,000 however to draw down you will also have to talk to an adviser.

As you can see from the above some banks are adapting to online banking more than others though the Irish market is definitely lagging the more advanced US, UK and Australian markets.

2 New Things about Moneybags.ie

As a graduate in my first professional job in Ireland I found that there was no where I could turn to get adequate information on everyday financial decisions and what steps I should take now to achieve my goals such as buying a house, making investments for the future or joining the company’s pension scheme.

I have built moneybags.ie so that others have enough information to make informed financial decisions and enable them to achieve their financial goals.

So we are pleased to announce 2 cool and useful new features on moneybags.ie which I hope our users will also find useful!

1) Clickthroughs to providers of financial products. There is so much information on banks websites that it can be hard to find exactly the area you are looking for. So –now if you click on the name of the provider you will be brought to relevant area of that banks website.

2) Live currency exchange rates provided by currency fair. There is now a live online currency calculator on our currency page that provides accurate rates and calculates how much you would save by using currency fair for foreign exchange.

Hope you find these useful & would love to hear your thoughts – email us at moneybagsie@gmail.com

Updated Loan Rates

Check out the updated personal loan rates . Interesting to see that the benefits of having a KBC current account offer -1) a discount of 2% on personal loans and 2) an extra 1% on a regular savings account – This results in 4% which is the highest rate on the market at the moment.
The conditions being that the personal loan must be repaid from a KBC Current Account and you must fund the Regular Saver by standing order from the KBC Current Account.

Ever worked abroad? Get a tax refund with Taxback.com

Have you ever worked abroad? If so, you could be due a tax refund. Taxback.com and Moneybags.ie have joined forces to make sure you get back any tax you’re owed. Taxback.com has been getting tax back for working holidaymakers, expats, students, employees and investors since 1996.
Taxback.com provides tax refund services for 13 countries including Australia, Canada, the US and Ireland. The amount of tax you get back depends on a variety of factors like:
• Where you worked
• The type of work you did
• If you were taxed incorrectly
• How much you earned
• How long you were working
Filing a tax return can be complex which is why a lot of people choose to use a tax agent. Taxback.com can guarantee the maximum legal tax refund and will ensure you are compliant with tax laws. It’s free to find out what you’re owed so apply today here.

Time Value of Money – Explained

One area that a lot of people struggle with is understanding the time value of money – often when someone mentions this concept a lot of people take it as a signal to stop paying attention.

There are 4 concepts that you need to get your head around to understand the time value of money

  • Compounding
  • Discounting
  • Present Value
  • Future Value

Compounding

Compound interest is when your interest also earns interest. So if you have savings earning 10% in the first year you will receive €10 Interest and then in the second year you will receive €11 in interest (110*10%)

Discounting

Is the opposite of compounding. It is calculating the value you need to have on deposit today to get €110 in the future.

Present Value

Present value is the value today of an amount in the future.

What would you prefer – to receive €100 today or receive €100 in a years time?

Automatically the answer is €100 today as you could put that €100 in a deposit account at 4% and it will be worth €104 in a years time, instead of €100.

Or to put it another way what would you prefer – to pay €100 in a years time or pay it today?

Again the answer is automatically a years time. As you could put €96 into a savings account today and it will be worth €100 in a years time.

So getting €100 next year is only worth €96 today. This is called the present value.

Future Value

The future value is what your money will be worth in a years time compounded at the interest rate it is earning.

The future value of €100 compounded by 4% over a year is €104.

 

Use in the Real world

The time value of money is one of the building blocks of finance and it can get more complicated when you take into account inflation, cashflows at different times and different rates of return over the course of an investment – however, if you can get your head around the above example you will have a greater understanding of finance than most.

By understanding the time value and how to discount and compound money can make a huge difference to your financial health over the course of your life, as it can be used to calculate return on investments and in all aspects of personal finance.