Need help with savings, 30k

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chewchew

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I have 20k in a credit union account. I have another 10k in a current account with my bank, I know this is no place to keep that much money but my wages go directly to this account so it's been building up for a while and it's time to sort it out.

I save between E1000 and E2000 per month, depending on the month. What would be the best place to put my money? I notice that some savings accounts only allow savings of up to E1000 per month to a maximum of E25,000 in all. Where can I put my 30k and continue to save on top of it while at the same time getting a decent return?

Any help much appreciated,

J
 
Is there a Mrs Chewchew? If so, each of you could open a regular savers account with Bank of Ireland (6.25%), paying in the maximum of €1,000 per month per account. That would take care of the €2,000 per month.
Re the 30k, to get the best out of it (1) Put €10,000 into Rabodirect at 4.75% and (2) €20,000 into Northern Rock at 4.25%. You will find loads of information in 'Best Buys' forum.
 
Thanks Oldtimer, there is no Mrs Chewchew to help me out. Are the Rabodirect and Northern Rock rates better than the average credit union dividends?
 
Chewchew - Individual Credit unions differ with their rates. These rates, called dividends, are usually announced at the AGM in Nov/Dec. I have looked at quite a few Credit Unions. A very few went as high as 3 to 3.5% but the majority were 2% to 2.5% which is hopelessly low compared to Rabodirect and Northern Rock. Remember the dividend (rate) for money currently on deposit (shares) in Credit Unions will not be announced until the AGM at the end 2007 so, strictly speaking, nobody knows what interest they currently pay but it is safe to say it will not compare with Rabodirect or NR. I am amazed at the number of people who leave substantial sums of money in credit unions with so poor rates. Credit Unions advantage is convenience. As you say there is no Mrs Chewchew you could open a regular saver account with Anglo Irish Bank (€1,000 per month @6%). You would want to watch the terms and conditions of these regular saver accounts - they differ from bank to bank, some more restrictive than others. For example, you have access to your money with Bank of Ireland but with Anglo Irish Bank no withdrawals are allowed over the 2 year agreement.

Hi Godfather - Northern Rock have both options at the moment. The demand on line account is 4.15% from Jan. They currently have a fixed rate of 4.25% but this has a closing date in early January. One wonders is fixing worthwhile for the extra 0.10%? Indications now are ECB rates will go up again in Feb or March which could see the variable rate of 4.15% pass out the fixed rate of 4.25%. It is matter of choice but personally I would not fix. As 2007 progresses a fixed rate of 4.25% may not look so attractive.
 
I have an online account with Rabobank that is simplicity itself to use, you can transfer monies online from your current bank to rabo and back if needs be, I tried Northern Rock online and got frustrated with their service so avoid it, the online accounts offer the best return risk free.

If you can tolerate risk, have an existing property and can still salt away 1000 a month I would buy property.
 
Thank you oldtimer

Hi Palerider, the difference of interest 0.45% for amounts above the 10K Euro can still make the difference for big amounts in my opinion expecially if leave there the amounts. I agree that the property market is better btw.
 
Thanks again. I think I will take your advice and put 10k into a rabodirect account, and the other 20 in a Northern Rock account. Can you tell me which MR account offers 4.15% variable? I have looked at their website and am confused as to which account i should be looking at.
 
Chewchew - I think you are doing the right thing - 10k to the new Rabodirect account at 4.75% and 20K to Northern Rock 'demand on line' account at 4.15%. When you open the NR site go to top left hand corner for 'demand on line.' You could also phone them - both NR and Rabodirect are very helpful to guide you through starting up. Despite what Palerider says above, I have a Northern Rock demand on line account and find it very simple to operate, as I do Rabodirect.
 
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