MONEY Medical cards, savings and start ups

Questions we might have


Money matters
Bríd Conroy

When I first met my husband, I was abhorred to discover he kept his cash in a tin at the end of the bed. That was 20 years ago. Nowadays managing our finances has become that bit more complicated. At my Money Clinic, I get asked many different types of questions. Here is a sample.

I’ve been told I should be entitled to a medical card because I have a young baby and work a good distance from home. It that true?
Well yes. A medical card entitlement is linked to your income and items like childcare, travel to work and rent/mortgage will be taken into account. Here is the calculation:

Weekly calculation €
A married couple is allowed to earn         266.50
Additional allowance per child                  38.00
Total allowance before other expenses    304.50

Childcare (e.g.)                                         80.00
Rent/Mortgage cost per week                  120.00
Travel (maximum allowance)                   50.00
Total allowed to earn to qualify                 554.50

Actual earnings after Tax, PRSI & USC    550.00

You will be entitled to a medical card   


A GP card may also be available if you don’t qualify as above. The starting point is €400 instead of the €266.50. If you have a medical condition this will also be taken into account. Apply online at www.medicalcard.ie or call 094 9022333.

I got €20,000 from a pension fund and want to know where is the best place to put it on deposit for a rainy day?
The following is an indication of the interest rates out there at the moment. Where you deposit the money depends on four points:

1. Do you need to have access to your money?
2. Your ability to bank on-line or not
3. Are you concerned with security of Irish banks?
4. What are you saving for?

If you don’t need access to the money for 12 months, Ulster Bank is offering a 3.7 per cent Annual Equivilent Rate (AER). EBS is offering 3.7 per cent; KBC Bank (a Belgian bank based in Dublin, can bank by post and can withdraw 25 per cent without penalty) 3.65 per cent; Permanent TSB is offering 3.71 per cent; and online Dutch Bank RaboDirect is offering 2.25 per cent. Bank of Ireland offer 3 per cent in year one and 6 per cent in year two if you leave it for a second year.
All interest is subject to DIRT (Deposit Interest Retention Tax) at 27 per cent. National Solidarity Bonds offer longer-term savings plans for four and ten years.
They work on the basis of a small interest rate annually subject to DIRT tax and then a tax-free bonus at the end. So if you leave your money in the scheme, the annual equivalent rate to compare with the 3.7 per cent above would be 4.53 per cent for the four-year plan and 5.41 per cent for the ten-year plan. The Post Office have a six-year plan with a comparable annual rate of 4.62 per cent.
Every deposit of €100,000 per person per bank is covered by the Bank Guarantee Scheme.

I have a good idea for business but is there any point setting up in a recession and anyway? I just don’t know where to start.
Well first of all, yes there absolutely is a point. Half the people employed in the Enterprise Sector of the economy work for companies with less than 50 employees. This sized company is vital to the recovery of our economy.
Secondly, you must start with preparing a Business Plan. It forms your ideas, looks at all the possibilities in your head and shows how you can form a viable business. Out of this, will come your funding requirements, your marketing plan and how much you plan to earn.
Mayo County Enterprise Board (094 9047587) and the South West Mayo Development Company (09 841950) are good places to get support, advice and training.
Also, www.Sage.ie offer a free download for a Business Plan.

BRID CONROY FCCA is a Chartered Certified Accountant with a practice in Louisburgh. She works on improving personal finances and the profitability of small and medium-sized businesses. To contact Brid, call 098 66870 or theoldschool@iolfree.ie.