25K to put away for college fund

Discussion in 'Deposits' started by fingers mcginty, Dec 27, 2016.

  1. fingers mcginty

    fingers mcginty Registered User

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    Hi folks, I'm not great with all this economic stuff. Can someone tell me where would be the best place to put 25K away to earn the best interest. Don't want to leave it in my current a/c. It would be for 5 years when my 1st born starts college. Thanks :)
     
  2. dub_nerd

    dub_nerd Frequent Poster

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    State Savings -- 5 year Savings Certificate, total 5% return (AER 0.98%), guaranteed by the state. See it on the Deposit Best Buys thread, and the State Savings website. Buy it at your post office. You will get €26,250 back after 5 years, total interest €1,250.
     
  3. CiaranT

    CiaranT .

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    The simplest approach is to put the money into State Savings 5 year Savings Certificate.

    The approach that might earn more interest is to drip feed the money into a regular saver account. A KBC Extra Regular Saver product allows a 10k lump sum and then requires deposits of 100 euro to 1k per month. The rate is 3.00% AER variable, a lot more than the State Savings product. One needs to be deposit at least 2,500 euro per month into a KBC Extra Current Account to get this rate and not pay current account fees. Also, the rate would need to be watched carefully. Too much hassle for most people but it is the strategy that is likely to earn a better return.
     
  4. fingers mcginty

    fingers mcginty Registered User

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    OK lads thanks for the replies...
     
  5. fingers mcginty

    fingers mcginty Registered User

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    So is it just a matter of filling in the downloadable form? then they setu the a/c for you and it's just a matter of transferring the money or how does it work?
     
  6. Billo

    Billo Frequent Poster

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    Highest Term Deposit Rates


    1 Year 6 Months - PTSB - 1.00% Is this correct ? i cant find it .
     
  7. emeralds

    emeralds Frequent Poster

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    We recently bought Prize Bonds (first time in quite a few years to buy them). We had to give photo id (passport or driving licence), recent proof of address (utility bill) and proof of PPs no. Imagine it would be the same for Savings Certs/Bonds.
     
  8. CiaranT

    CiaranT .

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    That's corrected in the best buy thread now. Thanks for pointing that out.
     
  9. cbreeze

    cbreeze Frequent Poster

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    Once they have your details, such as PPSN and email address you can buy future items online such as bonds, certs and prize bonds, using a debit or credit card - I just bought some certs before the end of December this way and it was way easier than going into the post office and filling out a form and then queuing!
     
  10. trasneoir

    trasneoir Frequent Poster

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    If there's any debt in your life (other than super-cheap tracker mortgages), pay that off first. There's no point investing at 1% while you're borrowing at 4% (mortgage) / 10% (car) / 22% (card).

    I think Dub_nerd's suggestion of state savings is good, at least for the money you'll need in 5 years. I'm guessing you won't need all 25k at the start of first year though. There might be other options for any money that can stay invested for longer.
     
  11. fingers mcginty

    fingers mcginty Registered User

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    I have a small mortgage and no other loans :)