Making Your Money Work Harder for You

Have you set yourself some five year saving goals? Helping your children through university, saving for retirement or, maybe, finally going on that round-the-world trip! If the answer is yes, then investing some of your money could be worth serious thought.

You should first consider, though, whether you’re able to commit your money for the medium to long term. If you can, then investing can offer you some real benefits.

Historically, over the medium to long term (think 5-10 years or more), investing in the stock market has typically generated greater returns than leaving your money in a savings account for the same length of time. 

Of course, past performance can’t predict what the future holds, but if you do it wisely and for the long term, investing your money can deliver greater returns.

We understand from our latest Family Finance survey, conducted by RED C that 70% of those polled would like to be better educated when it comes to financial products1.

We also recognise though the survey’s findings that Irish customers save a lot! With 1.7 million of us having savings of some kind, in fact, we Irish, save an average of €6.1k per annum1.

Interestingly, despite 1.6 million adults holding a deposit account, 59% have no idea what interest rate they earn.  And when they are aware of this rate, there is a general unhappiness with the level of return, with 93% noting they are very unsatisfied with the interest rate they’re earning1, 2.

64% of people surveyed feel that they are in control of their finances; this would suggest that the demand for investment plans is strong1.

Warning: Past performance is not a reliable guide to future performance.

We at Aviva, aim to cater for our customers needs through our range of multi-asset investment funds. These are one way to make the most of your savings, because they aim to maximise profits while investing in line with your personal risk appetite.  Watch our short video to learn more about our multi asset funds and to see if these funds are right for you.

These funds are available to you through our current savings, investment, pre and post retirement savings products.  These products are more accessible than you think.  In fact, the minimum investment in Aviva’s Regular Saver and Personal Pension is €100 per month. The minmum premium on our lump sum investment product, Investment  and our post retirement product, ARF ( Approved Retirement Fund) is €10,000.

With regards to savings, as a general rule, the longer you leave your money invested the better. One reason for this is that the longer it’s invested, the more it could benefit from something called ‘compound returns’ – once named “the eighth wonder of the world” by Albert Einstein.

Here’s the concept…

Let’s say you’ve invested your money, and your investments have done quite well, after the first year, you’ve earned a return on your initial investment, in the second year, any returns you earned would be on both your initial investment and last year’s returns. 

Consider Mary…

… she’s 25 and has 10,000 in savings. If she invests this 10,000 and just forgets about it, it may grow. So let’s assume her fund returns 3%, 5% or 7% per year after annual management charges, here is what her potential return would look like:



You don’t have to be Einstein to see the benefits…

The above example is hypothetical and does not represent an investor’s particular experience. The above example excludes the impact of product charges and tax. It also doesn’t take inflation into account, which would reduce the spending power of these amounts over time.

Of course, it’s important to remember that right now interest rates on savings accounts with Irish banks are at historic lowsmuting the impact of compounding when you choose to save in a bank savings account (Source: Irish Deposits 20 June 2017).

It’s worth remembering that the value of investments can go down as well as up, and you may get back less than you invested.

If you’d like recommendations based on your particular circumstances, then it’s best to seek financial advice and talk to one of our financial brokers. Check out our investment products – including the Aviva’s Investment Bond and Aviva’s Regular Saver – for ways you can plan for the future.

  1. Source: RedC Family Finance Report May 2017. RED C interviewed a quota controlled representative sample of 1,280 adults aged 18+ online from April 26th to May 3rd 2017.
  2. Qualifying terms and conditions apply to fixed deposits.   The interest earned in a fixed term deposit account is guaranteed. When you invest in a deposit account you may qualify for compensation under the Deposit Guarantee Scheme should the bank be unable to meet their obligations to you.

Warning: Past performance is not a reliable guide to future performance.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you may lose some or all of the money you invest.

Warning: These products may be affected by changes in currency exchange rates


Aviva Direct Ireland Limited is regulated by the Central Bank of Ireland.

Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is also regulated in the UK: by the Prudential Regulation Authority for prudential rules and, to a limited extent, by the Financial Conduct Authority for applicable UK conduct rules. Registered Branch Office in Ireland (No 906464) at One Park Place, Hatch Street, Dublin 2. Tel (01) 898 7000. Registered in England (3253947) at Wellington Row, York, YO90 1WR. © 2015 Aviva.

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