An Irish Times guide to the world of personal finance.
SSIAs
I have an enquiry regarding the special savings incentive account (SSIA), but my bank is unable to provide me with a satisfactory answer, and the Revenue Commissioners doesn't answer my questions. I hope you can help me. I am currently resident in Ireland, have a PPS number, and would like to open an SSIA, but I am not sure I will remain resident during the next five years: I may permanently relocate abroad in three or four years. I know that you must be either resident or ordinarily resident during the five years that the SSIA is held. This requirement should not be a problem for me, as I have read that you remain ordinarily resident until you have been non-resident for three consecutive years.
However, another requirement for the SSIA is that - at maturity of the SSIA - you have to make a declaration in the form prescribed by the Revenue Commissioners. But what happens if you no longer live in Ireland then? Can you make the declaration by post, or do you have to come over to Ireland to make that declaration?
Also, will I be able to withdraw my funds at maturity without having to come over to Ireland?
Ms S.D.W., e-mail
The rules make provision for the fact that the person taking out the special savings incentive account and the institution opening such an account may never meet at all. Under paragraph 4.4 of the guidance notes on SSIAs, it says that it is alright for an institution to open an SSIA in circumstances where there is no face-to-face contact (as in remote telephone or internet banking), providing adequate checks against money-laundering are in place. This does not apply directly to you but it does indicate that there is no need to be physically present to open or operate an SSIA.
The same guidance notes state in paragraph 6.2.8 that: "For convenience, the qualifying savings manager [the institution] may complete the qualifying individual details and special savings incentive account details on form SSIA4." This is the form that must be completed at some time between 60 days before the fifth anniversary of the SSIA commencing and 30 days after that anniversary to confirm that the SSIA has reached maturity. If it is not done, it is a breach of the terms of the SSIA and the account is deemed to have ceased.
As you can see from the notes, you do not actually have to be on hand to fill out the details. The institution can do it for you. However, the paragraph also advised that the customer should be invited to confirm the accuracy of the details on the form, as it will, in effect, be a declaration by you that you have fulfilled the requirements of the scheme. However, there is no reason why this cannot be done by fax or e-mail, or indeed post. So, no, there is no need for you to return to Ireland should you have relocated by then.
Equally, there is no need for you to return to Ireland to withdraw your funds as long as your SSIA provider is certain that you are the owner of the funds. You can always set up contact arrangements with the provider before you leave the State.
Within the terms and conditions of the TSB's SSIA offering is the following: "The bank may vary the terms and conditions and the interest charges applicable on an account, including the interest rate structure from time to time."
Does this mean that my special savings incentive account, which is fixed-interest, could be affected by this condition? Can a fixed rate be subject to change?
Mr P.K., Wicklow
Rest assured that the interest rate to which you agreed is secure. It is true that the bank can change the interest rate it offers, including fixed rates, at any time. However, it cannot change the fixed rate to which customers have already signed up. In the same way that you are bound by the fixed-rate contract, so is the bank. What it could do, for instance, is change the fixed rate offering for people who have yet to join the special savings incentive scheme. Thus, you could have an SSIA at one fixed rate and another customer could have a similar SSIA but at a different rate.
Insurance
I have recently moved to Galway, where I am renting a room in a house. I share the house with two other guys, and we are all working. My room has its own lock. I wanted to get my possessions insured and I can't get anyone to insure my stuff. The amount is not outlandish, but I wouldn't want to have to pay to replace all my professional textbooks, or even my clothes and sports equipment.
Given the difference between house prices and normal people's incomes, I expect that many people live in similar arrangements, particularly students, and yet the insurance broker seemed surprised that anyone even would ask for such a policy. I never had trouble like this when I worked in Northern Ireland or England, so why are Irish insurers indifferent to such a big potential market?
Mr S.M., Galway
As you say, this is a major market - albeit one with a higher that average claims cost - and one that is growing all the time as house prices force more and more young people into shared arrangements. There is, to my knowledge, only one insurer currently providing for this market in the Republic and it will come as little surprise to you to learn that it is a British company - Endsleigh Insurance, founded back in 1965 by the National Union of Students and therefore well used to catering for such shared arrangements.
It offers a range of packages for students and also for working people in shared accommodation. The rates for students start from €29 in officially recognised college accommodation or €49 in private rented accommodation. This provides cover of up to €2,500 on personal possessions anywhere in the accommodation, together with cover of €6,250 on fire and theft of landlord belongings and some cover for disability arising from assault, credit cards and cash. There is more flexibility on the working person's shared accommodation cover.
You can contact Endsleigh in Dublin at 01-8781022 and in Belfast at 04890-242845.
The only other operator that might help is getcover.ie. It used to cover shared accommodation but has had to discontinue it following the demise of its underwriter, British company Independent Insurance. However, it hopes to replace the underwriter in the next few months. Keep an eye on its website at www.getcover.ie.
Please send your queries to Dominic Coyle, Q&A, The Irish Times, D'Olier Street, Dublin 2 or e-mail to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice. Due to the volume of mail, there may be a delay in answering queries. All suitable queries will be answered through the columns of the newspaper. No personal correspondence will be entered into.
