6k for 10 years- where best?

Dr.Phil

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I put 5k of my child's savings into a 4 year National Solitary Bond and it has now matured to 6k. So have no idea what to do with it now, do I stick it back in for another 10 year bond with An Post?

I'm clueless when it comes to this kind of thing. Child is only 5 at the moment so long term option is fine.
 
It seems that the profit rate is okay and if you don't have other better choice, just put it for another 10 year in my opinion.
 
I put 5k of my child's savings into a 4 year National Solitary Bond and it has now matured to 6k. So have no idea what to do with it now, do I stick it back in for another 10 year bond with An Post?

I'm clueless when it comes to this kind of thing. Child is only 5 at the moment so long term option is fine.

If you're clueless then you should take a safe option and that's probably as safe an option as any other.
 
You need to sit down an figure out the answers to the following questions
1) What is your target for these savings? (In 10 years time it will have grown to €7500)
2) How do you feel about risk? (Both the risk of less secure investment and the risk of inflation eating away at your gain)

I think from what you have posted above the 10 year product looks like a prudent choice but for your comfort give serious consideration to at least those two questions. Since you say "I put 5k of my child's savings into a 4 year National Solidarity Bond" I am assuming that this 5k did not and does not represent the totality of your savings for your child? I don't think you should consider this lump sum in isolation but rather look at the savings holistically. I am not advocating putting all eggs into the one basket but rather lay out your strategy for all of the savings and consider this lump sum as a component in that strategy.
 
Personally, I'd stick with 4-year Solidarity Bonds or 5.5-year Savings Certs, even if the investment horizon is 10 years.

There is obviously a risk that interest rates will rise materially over a ten-year period and the interest rate premium on the 10-year Solidarity Bond over the shorter term products does not adequately compensate for this risk in my humble opinion.
 
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