What would you do with €30,000

[kaji84]

I know you're probably sick of reading these stupid posts, but I am stupid when it comes to finances so I'd appreciate any help. What would you do if you had €30000 and didn't need it for 5 years? I'd prefer as risk free as possible. I would really appreciate help from anyone

 

[Billo]

Buy prize bonds. You might get lucky.

 

[kaji84]

Thanks Billo, but I had them before and won nothing.

 

[Gervan]

I don't think any of us can look 5 years ahead. The likelihood is that interest rates in the next 3 years are going to remain this low, or go even lower.
If you are part of a couple, I would put the 30K into Ptsb online saver at 2.25% and feed it into 2 Nationwide UK regular savings accounts, with 4% interest.

Anything under €100,000 should be guaranteed in any bank in Ireland. Nationwide UK is under a UK guarantee.

I know that only takes you 15 months into the future but the whole picture may be different by then. Stay liquid, rather than tie funds up for 5 years.

 

[johnfrancis]

hi,

You should have bought one of these houses today. sold for 250,000 in the boom times.

 

[pudds]

With dirt tax and now prsi on deposit interest, I would be looking at AnPost 3yr savings bonds and 5yr savings certificates which are tax free.

You can also get access to your cash at any time if necessary..

 

[Jim2007]

I don't think any of us can look 5 years ahead. The likelihood is that interest rates in the next 3 years are going to remain this low, or go even lower.
If you are part of a couple, I would put the 30K into Ptsb online saver at 2.25% and feed it into 2 Nationwide UK regular savings accounts, with 4% interest.

Ignoring the FX risk to start with... then there is the fact that UK rates are almost 4 times the mainland Euro rates... The UK bankers are not doing that because they are nice guys!

 

[Gervan]

Sorry, I did mean Nationwide UK Ireland, euro deposits, no FX risk.

 

[NHG]

I had €30k that I didn't need for about a year so I purchased prize bonds with it, to date I have won €600 & will be cashing them in before the end of next month.

 

[Cantalia]

Where is Nationwide UK? I never heard of them here, are they in Dublin only?

 

[Marc]

Here we see one of the biggest mistakes investors can make. Failing to clearly define their goals yet seeking advice on what to do with their money.

A better way to think about this problem is to seek to define what it is you are trying to achieve.

Why 5 years ? How much might you need before 5 years? Do you have other resources; savings, income etc. what happens in 5 years time? For many people its reinvestment so what is the real term here?

How old is the OP? Family circumstances? Employment? Retirement arrangements? Protection arrangements? Have they made a will?

These questions get to the heart of where the OP is and where they are trying to get to and nobody can offer any meaningful advice without properly defining these issues.

If you don't know where you are going, any map will do!

 

[Lightning]

I know you're probably sick of reading these stupid posts, but I am stupid when it comes to finances so I'd appreciate any help. What would you do if you had €30000 and didn't need it for 5 years? I'd prefer as risk free as possible. I would really appreciate help from anyone

Set up an instant access account and several regular saver accounts.

(1) The best instant access account, without restrictions, is 2.3% with KBC but withdrawals are cumbersome as you need to visit the branch or do it by post unless you have a current account with KBC which would incur fees. Hence, you might be best with the PTSB 2.25% online instant access account. Deposit the 30,000 EUR here and start drip feeding into regular saver accounts.

(2) Set up a 4.00% Nationwide UK Ireland EUR regular saver account. Wire 1,000 EUR into the account each month. Keep an eye on the rate. Also, keep in mind that this account will mature in 1 year 3 months so you will need a new strategy then.

(3) Set up a 3.5% KBC regular saver account. Direct debit 1,000 EUR a month into the account. Keep an eye on the rate.

Ignoring the FX risk to start with... then there is the fact that UK rates are almost 4 times the mainland Euro rates... The UK bankers are not doing that because they are nice guys!

Firstly, as pointed above, NUK offer EUR accounts in Ireland. GBP rates are not typically 4 times EUR deposit rates. GBP deposit rates have nose dived in the last year thanks to Cameron's mortgage help scheme which has left UK banks less dependent on deposits.

 

[pudds]

The state savings returns have decreased dramatically in the last few years with Savings Certificates returns now at 11% over 5 years down from the previous 21%.

I'm aware of that but on a sum of 30k does the fact their dirt +prsi free not make them the best option.

If not how much would be the actual gain in interest earned be between them for all the trouble invested in drip feeding accounts etc.

 

[so-crates]

Here we see one of the biggest mistakes investors can make. Failing to clearly define their goals yet seeking advice on what to do with their money.

A better way to think about this problem is to seek to define what it is you are trying to achieve.

Why 5 years ? How much might you need before 5 years? Do you have other resources; savings, income etc. what happens in 5 years time? For many people its reinvestment so what is the real term here?

How old is the OP? Family circumstances? Employment? Retirement arrangements? Protection arrangements? Have they made a will?

These questions get to the heart of where the OP is and where they are trying to get to and nobody can offer any meaningful advice without properly defining these issues.

If you don't know where you are going, any map will do!

+1

Kaji84, I think before looking at any product, path or gameplan you need to sit down with yourself, look at your life now and over the next few years and define some goals and expectations, otherwise you will make a choice you may regret.

 

[kaji84]

Here we see one of the biggest mistakes investors can make. Failing to clearly define their goals yet seeking advice on what to do with their money.

A better way to think about this problem is to seek to define what it is you are trying to achieve.

Why 5 years ? How much might you need before 5 years? Do you have other resources; savings, income etc. what happens in 5 years time? For many people its reinvestment so what is the real term here?

How old is the OP? Family circumstances? Employment? Retirement arrangements? Protection arrangements? Have they made a will?

These questions get to the heart of where the OP is and where they are trying to get to and nobody can offer any meaningful advice without properly defining these issues.

If you don't know where you are going, any map will do!

OP here. I should have been clearer. I'm 29, in secure employment (with contract), no plans to buy a house for at least 4 or 5 years. I'm single.

 

[amtc]

OP here. I should have been clearer. I'm 29, in secure employment (with contract), no plans to buy a house for at least 4 or 5 years. I'm single.

I'll meet you at 8pm tomorrow then...

...seriously Prize Bonds not the worst idea...avg return is 3% and is easily encashable. I spoke to someone senior there last year, and lots and lots of people withdraw their bonds in October, when the self-employed tax returns go in, so it's a form of ring fenced saving but secure to pay Revenue

 

[so-crates]

OP here. I should have been clearer. I'm 29, in secure employment (with contract), no plans to buy a house for at least 4 or 5 years. I'm single.

I'll meet you at 8pm tomorrow then...

If amtc stands you up, I'm sure there'll be other takers

Seriously though. You have given your current position but you haven't outlined goals and expectations. Are you thinking in five years that you want that €30k available to go towards a house purchase? Or will you be thinking of reinvesting all or part of it? What do you mean by risk-free? Do you mean by that €30k in, minimum €30k out? Bear in mind that the purchasing power of €30k in five years time may not be the same as now. Will you want to have access to the cash in the investment period? How much access would you want to have? Do you have other savings, if you do, how accessible are they? (In other words is this €30k your entire savings portfolio)

 

[dub_nerd]

Here we see one of the biggest mistakes investors can make. Failing to clearly define their goals yet seeking advice on what to do with their money.

A better way to think about this problem is to seek to define what it is you are trying to achieve.

Why 5 years ? How much might you need before 5 years? Do you have other resources; savings, income etc. what happens in 5 years time? For many people its reinvestment so what is the real term here?

How old is the OP? Family circumstances? Employment? Retirement arrangements? Protection arrangements? Have they made a will?

These questions get to the heart of where the OP is and where they are trying to get to and nobody can offer any meaningful advice without properly defining these issues.

If you don't know where you are going, any map will do!

I completely disagree with this. It's perfectly legitimate to ask what's the best return I can get on my money for five years. Someone who tells me that "nobody can offer any meaningful advice without properly defining these issues" is trying to sell me something.

 

[Marc]

Jeez well I am a Klutz! There I've been completing fact finds and writing statements of suitability for the last 20 years when all I had to do was pick the best rate from a website. Think of all the money I'll save in levies to the Central bank and professional indemnity insurance premiums.

Incognito, unregulated opinions the future of financial advice.

 

[Jim2007]

I completely disagree with this. It's perfectly legitimate to ask what's the best return I can get on my money for five years. Someone who tells me that "nobody can offer any meaningful advice without properly defining these issues" is trying to sell me something.

And if you have no idea what you are trying to achieve, then any solution will do...

The objective is to obtain the return you need to achieve your financial objectives, without taking on more risk than is needed to achieve that return. The higher the return you need, the higher the risks you are going to have to take on, so it makes no since to risk everything going for a return of say 12.5% pa, if a lower return with a lower risk will get you where you need to be. It is not a competition, although may people seem to think it is.