Savings plans explained: a guide (2024)

HomeSavings › Savings plans

Automate your savings and get ahead of the game with a solid savings plan you can count on. Saving for the future, a big milestone, or just a rainy day helps provide security and a solid financial foundation. Whether you want to start building a nest egg or contribute to an existing set-up, a savings plan will help you to manage your money and your future.

Key takeaways
  • A savings plan allows you to automatically top up your savings accounts

  • It’s one of the best ways to set aside funds each month, whether you want to prepare for the unexpected or save for a special occasion

  • A savings plan doesn’t have to be just about the long-term future, you can also set it up to work for your short-term savings goals

  • Opening a demand deposit account at Raisin Bank and setting up a savings plan is a hassle-free way to get closer to your savings goals

What is a savings plan?

A savings plan allows you to automatically top up your savings accounts. It’s a great way of getting disciplined with your money and can help you accumulate funds. A good saving plan set-up is designed to make it easy for you to set money aside through periodic transfers. After the initial set-up, you can sit back safe in the knowledge that your savings are growing without the fuss.

What are the advantages of a savings plan?

Saying yes to a savings plan is one of the best ways to set aside funds each month. Life is full of unexpected twists and turns, and knowing that you have savings tucked away can keep you from facing struggles in the future.

You may also be saving for something special or for a life milestone like a wedding, mortgage or a big trip. Whatever your reason, setting up a saving plan can help you achieve your financial goals.

There are many advantages to be gained from a savings plan, including the following:

  • Safeguard your future
  • Get consistent with saving habits
  • Get better at budgeting
  • Watch your wealth grow
  • Fulfill your financial goals

What is Raisin Bank’s automatic savings plan and how does it work?

Once you have a Raisin Account set up with Raisin Bank, you can open different types of savings accounts with Raisin Bank’s partner banks.

This gives you the flexibility of choosing a savings account that works for you, whether that’s a fixed term deposit account or a simple demand deposit account.

When you open a demand deposit account, you can also automate dedicated payments from your bank to your Raisin Account. These payments will automatically transfer into your demand deposit account at your chosen frequency.

This way, you can top up without logging into Raisin Bank every time; simply use your unique description when making transfers

If you want to make a one-off larger deposit, you can also do this. An automated savings plan is fully flexible as you choose how much to transfer and how often you make these transfers.

Note that the automatic savings plan is only available with demand deposit accounts.

What are the benefits of an automatic savings plan?

Setting up an automatic savings plan comes with a range of benefits, and as you have full control of the schedule, you can make a plan that works for you.

These are a few of the benefits you can enjoy with an automatic savings plan:

  • Enjoy a stress-free savings experience – set it up and forget about it
  • Enjoy fully flexible options – whether you have a short term or long term goal, your automatic savings plan can grow with you
  • Enjoy interest on every euro – after your initial deposit, you’ll earn interest on every euro without delay

What types of savings accounts are there?

There are different types of saving accounts out there and each comes with their own benefits. The savings account you choose will probably depend on your savings goals and whether you already have savings.

To understand how to make the most of your savings, it helps to know the different options when it comes to saving accounts, too.

A demand deposit account is one of the most flexible account options available if you’re looking to open a savings account. You can open these from anywhere, typically deposit as little as a euro and then continue to add and withdraw money as much or as little as you want.

A fixed term deposit account requires you to deposit a fixed amount at a fixed time. You won’t be able to add or withdraw from this account during the fixed term, but while it’s less flexible than an overnight money account, you do get the benefit of more competitive rate of interest.

What are the differences between a savings plan and a pension plan?

A pension plan is all about getting financially set up for the future and is geared towards achieving financial goals for your post-work life.

A savings plan, on the other hand, doesn’t have to be just about the long-term future but can take into account your short term goals, too.

Maybe you want to set a financial goal for next month or next year, rather than 30 years down the line. A savings plan is much more flexible than a pension plan, but can still give you good returns and help secure your future and your finances.

4 steps to create a savings plan

If you want to get started on your automated savings plan, here are a few easy steps to get it all set up:

  1. Register for a Raisin Account and follow the steps required to prove who you are
  2. Open a demand deposit account with a partner bank
  3. Set up your automated transfer with the details of how much you want to transfer and how frequently
  4. Set and forget – just watch your money grow

Register for your Raisin Account today and get saving.