Advice on investment

hgf

Registered User
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I have read the best buys which are pretty depressing for interest return on my savings. I have 37k currently sitting in my current account while I try decide what to do with it. I may need access to this in the next 1-2 years if I decide to apply for a mortgage and buy a house.
I already have 15k in prize bonds and 23k in a dismal return regular saver account which I have stopped transferring into,for no particular reason.
With a toddler and a new baby at home I am seeking an easy low maintenance place to put my 35k. Initially I planned buying more prize bonds but for some reason I am doubting this is the right thing to do. The monetise Irving in my current account 3 months now and it's getting silly. I would really appreciate some advice on what to do with it. Please
 
have 37k currently sitting in my current account while I try decide what to do with it.

One option would be to put a 10k lump sum into a KBC Extra Regular Saver and then drip feed 1k per month. The rate is 3.00% AER variable.

Obviously you would need to find a home for the 26k as well.
 
Even if you drip-feed a regular saver, you can only do it for a year and you only get half the headline AER. Then you pay 40-odd percent DIRT. So on your KBC regular saver you get (3% / 2) x 60% = 0.9% net, or €90 on €10k. Then you have to find a home for the rest of the amount above €10k. I've concluded it's not worth the hassle and just leave money in a Rabo account at 0.5% on the first €50k (0.3% after DIRT). In the current low inflation environment, think about security and forget about earning anything unless you are prepared to invest in risk assets.
 
I agree with dub_nerd's conclusion that regular savers are really not worth the hassle any more.

However, on a point of detail, Rabo now only pay 0.40% AER on the first €50,000 in an instant access account.:(

On a brighter note, DIRT is now "only" 39%!:)
 
Even if you drip-feed a regular saver, you can only do it for a year

For KBC, the full 3% is paid on moneys that were lodged last year too, so that's not true.

I used to think I had to clear my AIB Regular Saver after the year, and start again, but learned (on this forum) that is not true either.
I had a 3% EBS Regular Saver mature recently, and was able to stuff the proceeds into several previously opened AIB regular saver accounts (you can have 4 each, so 8 if you are a couple) and get 1.5% on all the funds, which is as good as I can get at the moment. I will now feed them into KBC regular savers at 2% and 3%.
 
For aib you can have 4 online regular savers and 4 offline regular savers , which you open from a branch.
I'm assuming your spouse can open 4 and 4 more, making them 16.
The more you spread the amounts between those 16 , the closer to 2% Apr you are getting , assuming they are not all full.
 
I've concluded it's not worth the hassle and just leave money in a Rabo account at 0.5% on the first €50k (0.3% after DIRT). In the current low inflation environment, think about security and forget about earning anything unless you are prepared to invest in risk assets.

Came to the same conclusion only when they announced they are cutting this rate to 0.2% in August I decided to transfer 3000 to my current account to avoid current account fees.
 
For aib you can have 4 online regular savers and 4 offline regular savers , which you open from a branch.
I'm assuming your spouse can open 4 and 4 more, making them 16.
The more you spread the amounts between those 16 , the closer to 2% Apr you are getting , assuming they are not all full.

Yeah and the more you spread the opening dates of the accounts, the more you can spread the money in the rate bands for each account by moving money between the accounts each month staying below each respective monthly cap.

BoI allow you open three 1.35% AER regular saver accounts without having a current account with them, so if you max out on the AIB option then BoI is another option.
 
Gervan , Can I ask how you dont have to clear AIB Reg Saver when it reaches the max of 12 k ? Thank you.
 
Whilst, you don't have to clear the 12k in an AIB Regular Saver at the 12 month point, you will only earn 0.01% on anything in excess of 1k for the subsequent month if you do not clear it. So effectively you do need to clear 11k.
 
Ciarsn,
If you just stop paying into the a/c and leave the €12,000 there for a further Year don't you effectively earn 0.75% over the year? (Assuming the saver rate is 1.5% on increasing €1000s each month.)
 
Yes, you will earn an average of 0.75% AER variable for the subsequent year. One is obviously better sticking within the monthly thresholds.
 
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