Thanks to everyone who joined our ‘Moving money from deposit’ webinar – we had great engagement from Financial Brokers both during and after the call. Today I want to touch on a few of the points that we raised during the session, and also answer some of the questions that we received.


As a starter, I think we are all very aware of the opportunity for customers to earn better returns by investing their money in multi-asset type funds over leaving money on deposit. A number of Financial Brokers brought up the 41% rate of exit tax (compared to the 33% rate of DIRT). This is a very valid query – exit tax is out of sync with other forms of taxation. But I would argue that given the potential for much higher returns on an Investment Bond over money on deposit, it is an argument worth making to a customer.


If we look at a real life example of someone who invested €35,000 over 8 years ago then I think it makes a compelling story:


1st September 2015


Invested €34,653 (after levy, product allocations, etc). 

100% in Active Asset Allocation (AAA) Fund.

31st August 2023

Policy value before tax: €54,218

Gain made: €19,565

Exit Tax (8th year deemed withdrawal): €8,021

Current value today: €46,697


Given than the equivalent deposit rates had been close to 0% over that same time period, it really make a good story for the customer. We are seeing interest rates rising – with local banks offering headline rates of >2% (before DIRT of 33%) so I’m sure some customers will be swayed by those – but the long-term argument for investing is compelling. And maybe 41% tax is taking the glass half empty view, 59% of any return is tax-free! None of us love tax but you’re only paying tax when you’re making money and paying some tax on some returns is better than paying no tax on no returns.


To recap:

  • One simple online application form
    • No further admin, annual tax returns or tax payments
  • Award winning investment management with >30yr track record
    • Asset allocation and ongoing active management
  • Range of investment options across different risk levels
  • Tax deferred
  • Clear and cost effective pricing
  • Ability to withdraw funds at any time
  • Online portal giving current value of investment both before and after tax
  • Experience and financial stability of a global insurer