Ireland’s New Savings and Investment Account: What It Could Mean for You

Budget 2027 has drawn particular attention to the Government’s proposed Savings and Investment Account, or SIA.

Irish households hold more than €170 billion in cash deposits*. While keeping money accessible and secure is important, many people are asking whether some of their savings could do more over the long term, particularly as the cost of living continues to rise.

The proposed SIA could offer a new, tax-efficient route for people who want to invest towards longer-term goals. Whether you are saving for a child’s education, building wealth for the future, planning for a mortgage or approaching retirement, it may provide another option to consider.

Details are still emerging and the final design will depend on Government legislation. However, here is an overview of what is currently proposed, along with some practical considerations for first-time investors.

What is the Savings and Investment Account?

The proposed Savings and Investment Account is expected to be an investment-based savings vehicle that allows individuals to invest in funds containing assets such as shares.

Unlike a traditional deposit account, where savings earn interest, an SIA would aim to provide the potential for investment growth over time. The value of investments can rise and fall, so returns are not guaranteed.

• The opportunity for long-term growth through investment markets
• A greater potential to keep pace with inflation
• More favourable tax treatment than some existing investment options
• A straightforward and accessible way to begin investing

An SIA is not expected to replace emergency savings or money needed in the short term. It may be more suitable for funds you can leave invested for several years.

Unlike the original SSIA introduced in the early 2000s, there is currently no proposed Government contribution.

Could an SIA Help You Save for Your Child’s Education?

For many public sector employees, saving towards a child’s education is a key financial goal. School, university and associated living costs can add up, so starting early may make a meaningful difference.

If your child is young and you have a long timeframe, an SIA could potentially provide a structured way to build a dedicated education fund. As the account is expected to be investment-based, it may be better suited to goals at least five to ten years away.

A longer investment horizon gives your money more time to recover from short-term market movements and potentially benefit from long-term growth.

Some parents may choose to invest an amount equivalent to their monthly Child Benefit payment into a long-term investment plan. As your child approaches secondary school or university, it is important to review your approach and consider moving money required in the near future into a more stable and accessible option.

Can You Use an SIA to Save for a Mortgage Deposit?

This is one of the most common questions for people considering investment-based savings. The answer largely depends on when you intend to buy.

If you expect to purchase a property within the next few years, an SIA may not be the most suitable place for your deposit. Investment values can fluctuate, and there is no guarantee that your money will be worth more at the point you need it.

Investment-based accounts are generally more appropriate for timeframes of at least five years, and ideally seven to ten years.

If buying a home is still some distance away, you may decide to invest towards longer-term goals while keeping your expected deposit in a more secure and accessible savings option as your purchase date gets closer.

If you are at the beginning of your mortgage journey, this can be a useful time to review your finances, set clear savings goals and understand the options available to you.

Approaching Retirement: Lump Sum or Monthly Contributions?

Many public sector employees approaching retirement are considering how the proposed SIA could fit within their wider retirement plans.

While the full details have not yet been confirmed, it is expected that both lump-sum investments and regular monthly contributions may be possible. However, it is especially important when planning your retirement to seek professional advice as the SIA will only be valid once you have maximised all pension related options as these are more tax efficient than the proposed SIA” 

The right option depends on your circumstances, objectives and comfort with investment risk.

Some people may prefer to invest a lump sum after setting aside sufficient funds for living expenses, emergencies and planned spending. Others may feel more comfortable investing a smaller amount each month and building their investment gradually over time.

There is no single right answer. Any investment decision should form part of a broader retirement plan that considers your expected income, future expenditure, financial goals and attitude to risk.

Is Your Money Guaranteed?

It is important to understand that the proposed SIA is expected to be an investment product rather than a deposit account.

This means your money could be invested in assets such as shares, and its value can go down as well as up. Your capital is not guaranteed, and you could receive back less than you invest.

Investing is generally best viewed as a long-term strategy. Markets can be volatile in the short term, but a longer investment timeframe may give investments a greater opportunity to grow and recover from periods of market uncertainty.

Before investing, consider your financial position, how long you can leave the money invested and how comfortable you are with fluctuations in value.

Can You Open More Than One SIA?

Current proposals suggest that each individual will be limited to one Savings and Investment Account. Your PPS number is expected to be used to verify whether you already have an account.

Couples saving together may each be able to open and contribute to their own SIA, subject to the final rules.

Is an SIA Right for You?

The proposed Savings and Investment Account could become an attractive option for public sector workers and others who are saving towards long-term goals.

Whether you are planning for your child’s education, building future wealth, working towards home ownership or preparing for retirement, the most important starting point is to have a clear goal and an appropriate timeframe.

Before making an investment decision, make sure you understand the risks involved and consider seeking professional financial advice. The best investment approach is one that reflects your goals, timeframe and attitude to risk.

Sources:

*Irish Times, 22nd May 2026: https://www.irishtimes.com/business/economy/2026/07/31/irish-households-held-175bn-in-cash-deposits-in-june-as-government-readies-savings-scheme/

This article is for information purposes only and does not constitute financial advice. The Savings and Investment Account proposal remains subject to final Government legislation and implementation details.

Cornmarket Group Financial Services Ltd. Is regulated by the Central Bank of Ireland.