Where to put lump sum for for future house purchase

K

krafter

New Member
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Hi All,

I have €200k in a CA from the sale of the family home doing nothing.

I want to buy my own home over the next 12-18 months but I have a comfortable rental arrangement at present and I can afford to sit tight until I find the 'right house' for me.

My question is, what do I do with the €200k in the interim?

Lightning's recent post lists several demand deposit products with foreign/online/investment banks.

I'm thinking of splitting the €200k across 2-3 demand or short-term deposit accounts, but I'm overwhelmed by choice and somewhat wary of the online-only/investment bank options.

Any suggestions on how I might deposit the €200k would be very much appreciated.

My requirements are:

1. Zero Risk
2. Maximise my return
3. Easy Access (1-30 days max)
 
The safest and easiest option would be to put all of it into Prize bonds:
+ Virtually zero risk on the entire balance
+ Can withdraw within a few working days
- The return is variable, whereas the online banks have higher guaranteed rates

To maximise returns you could split it between the various online banks up to their deposit guarantee limits. For example:
- 20k in Trading212 @ 4.20%
- 50k in Trade Republic @ 4.00%
- 20k in Lightyear @ 3.25%
- 100k in Morrow via Raisin Bank @ 3.03%
- 10k in Advanzia Bank @ 3.97% for 3 months then move it somewhere else

Since they all have deposit or investor protection, they notionally have close to zero risk. But that's the risk of losing money, not the risk of actually being able to access that money immediately when you need it.
 
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One thing I would say about trade republic is that they only give statements every 3 months and outside this you have to pay €25 to get one. Given statements need to be within a month of an application and you'll likely have to do this twice if its timed badly its a bit of a hassle honestly to have to deal with.
 
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