AIB Parent Saver Plan

We all want what’s best for our children, but as every parent knows, kids are an expensive business these days. Luckily, there’s a great way to help you pay for your child’s future – AIB’s Parent Saver Plan. As well as giving you a great interest rate on your monthly contributions, it also lets you put away large lump sums that you may have from time to time.

The AIB Parent Saver Plan is opened in relation to a child under 18 years. It is ideally suited to develop a nest egg for your future. Both of the accounts are in your name and you own the money in the accounts. You can choose how and when to spend it!

To open the AIB Parent Saver Plan, you must be over 18 years. You may open up to four AIB Parent Saver Plans – and these can be in your sole name or jointly with another customer – subject to a maximum of two parties per joint account.

The AIB Parent Saver Plan consists of two separate accounts: AIB Parent Saver Account and the AIB Parent Deposit Account. The AIB Parent Saver Account is for regular savings and the AIB Parent Deposit Account is for lump sum deposits. You can withdraw your money from either of these accounts at any time without penalty. Both accounts are in the name the parent/guardian (or third party), and not the child.

1. The Parent Saver Account is a monthly savings account which offers you an attractive variable interest rate on monthly savings of up to EUR200. At the end of each year of saving, we will automatically transfer the balance from the Parent Saver Account into the Parent Deposit Account – which will facilitate those larger lump sums. The monthly savings cycle will continue as you have outlined in your instructions.

2. The Parent Deposit Account is an account suitable for lump sums which gives you the flexibility to save larger amounts whenever you like,you will earn a variable interest rate. You have the flexibility of being able to take your money out of either of the accounts at any time without penalty.

Benefits of the Parent Saver Plan:

• Great variable rates of interest on both savings accounts - maximising your savings.
• Offers you the flexibility to save regularly on a monthly basis – as well as any lump sums you may have from time to time. It is ideally suited for saving your Children’s Allowance.
• Third parties such as grandparents or godparents may also open a Parent Saver Plan with the written consent of the parent of the nominated child.
• For those unexpected emergencies you have the flexibility of withdrawing your money from either of these accounts at any time without penalty.

The Parent Saver Account

• You have the option of making regular payments into the account by standing order, cash, cheque, draft, credit transfer or by way of AIB Phone and Internet Banking if registered – subject to the total monthly maximum limit of EUR200.
• At the end of each year of saving, we will transfer your savings into the Parent Deposit Account.
• The Parent Saver Account continues to save your monthly amounts from year to year and continues to earn you a great variable interest rate.

The Parent Deposit Account

• There are no restrictions on the amount you can save into the Parent Deposit Account.  
• Lodgements can be made at any time into this account. It allows you the flexibility to save larger sums for those times when you – or your child - have that bit extra, for example at bonus time. You can really boost your savings!
• Your savings from your Parent Saver Account will also be lodged into this account on an annual basis by us, so it won’t be long before you’ll find you have a nice nest egg building for your child’s future – whatever that may be – a deposit for their first home, their first car, college expenses or the world trip!

Top Tip!

Start your monthly payments into your Parent Saver Account early in the month to maximise your interest earned.

How to open an AIB Parent Saver Plan

• Call our dedicated savings team on 1890 724 724 from Monday to Friday 8.00 – 21.00 and Saturday 9.00 – 18.00. 
• Print an application form from our ‘Next Steps’ section above, fill in your details and post it to your branch. Before you print the application form, please ensure you read AIB’s Terms of Business. 
• Alternatively, call into your local AIB branch to open an AIB Parent Saver Plan.

Tax on Interest earned on Parent Saver Account

We will deduct Deposit Interest Retention Tax (DIRT) at the prevailing rate from all interest earned, unless you are entitled to exemption from DIRT, and we will pay this directly to the Revenue Commissioners.

To the extent that DIRT has been deducted there is no further liability to Irish income tax, but you may be subject to PRSI/Health levy.

The Bank will deduct DIRT from the accounts of non-residents unless a fully completed non-resident declaration form is held by the Bank and a minimum balance of EUR12,500 is maintained at all times in each account maintained by the non-resident.

If you or your spouse are aged 65 or over in the current tax year, or are permanently incapacitated, and you are exempt from income tax, you may apply to have the interest on the account paid without deduction of DIRT.

Important/Regulatory Notice

Terms and conditions apply. Interest is subject to DIRT where appropriate at the prevailing rate (for more detailed information please visit www.revenue.ie). 

• Terms and Conditions for the AIB Parent Saver Plan
• AIB Terms of Business
• Financial Regulator
• www.revenue.ie

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