For those that like to keep it secure and simple, a deposit account is usually the most attractive home for their cash. With the Government savings scheme in its eighth month, Family Money examines savings options available to Irish residents.

The steady fall in interest rates since May has been good news for borrowers but bad for savers. There has been a drop in the rates on offer for both fixed and variable deposit accounts within the scheme. The best fixed rate available is 4 per cent, from An Post, AIB, National Irish Bank and Bank of Ireland. The survey by Becketts Employee Benefits Consultants shows that An Post's offering is the most attractive as it allows early withdrawals without penalty.

A monthly saving of £10 (€12.70) for the five-year term at 4 per cent will bring a net return of £812. The maximum £200 per month will build to £16,240.

Although it has been heavily promoted, let's recap on the basic terms of the scheme.

Savers get £1 from the Government for every £4 they save. That's a 25 per cent top up for five years from the date the account is opened.

Accounts can be opened until April 30th, 2002 and only one account is permitted per saver.

There's a tax charge of 23 per cent on the interest or investment return on maturity.

The penalty for early withdrawal is tax at 23 per cent on the full amount, interest and capital.

Next week: Family Money will review the range of equity-based savings products on the market.