Anglo - premium demand or 6mth fixed term?

[emmage]

We were going to invest in an overseas property but on advice here have decided to hold off for the moment.

So we would like to put our money into safe deposit...is that possible!!

We have €500,000 to invest.
We have already put €150,000 into northern rock
Someone on this forum suggested Rabo as its has AAA security. We thought we might put €100,000 there
And €50,000 in investec 6mth?
And €50,000 in prize bonds?

We were just looking at anglo and wondered what are the advantages and would you recommend a premium demand or a 6mth term? The rates are very similar.

We don't want to lock it all away, as we may like to buy somewhere in the future but we would like to earn something in the meantime and also have it as secure as possible. What do you think?
Thanks
E

 

[skrooge]

We were just looking at anglo and wondered what are the advantages and would you recommend a premium demand or a 6mth term? The rates are very similar.

Rates are similar at the moment but anglo have generally been lowering the rates on their savings accounts (like most other banks). If you don’t need access to all the money you might consider spreading it between the two accounts. The premium demand has the benefit of giving you access to your money but there is no guarantee the rate will stay the same. The fixed rate 6 month option will give you certainty about the rate but the money will be locked away. Overall, I’ve found Anglo a very good back to deal with.

We don't want to lock it all away, as we may like to buy somewhere in the future but we would like to earn something in the meantime and also have it as secure as possible. What do you think?

If its bank accounts you are interested in placing your money have a look at the best buys section. I recommend looking first at lump sum deposit accounts – with such a large amount of money you might consider spreading it round a couple of institutions in order to maximise rates (some accounts have limits)/minimise risk(deposits insurance is 100k). Once you find a home for you money that you can easily access then start looking at regular savers accounts and further maximise returns.

 

[treasure]

Did you consider investing in GERMANY? Two members of my family bought apartments over there in the past two years and one is getting a return of 10% the other 8%. It all works like clockwork, so efficient and Germans usually rent long-term. You could buy several apartments for €500K. We have a very good contact there if you are interested - an Irish man who has lived there many years, speaks fluent German and is expert on the legal issues.

 

[skrooge]

Did you consider investing in GERMANY? Two members of my family bought apartments over there in the past two years and one is getting a return of 10% the other 8%. It all works like clockwork, so efficient and Germans usually rent long-term. You could buy several apartments for €500K. We have a very good contact there if you are interested - an Irish man who has lived there many years, speaks fluent German and is expert on the legal issues.

A word of warning the Irish housing market isn't the only one over inflated!!
http://news.bbc.co.uk/2/hi/europe/8153387.stm

 

[Commercial]

The premium demand account rate will change shortly. I don't know how much it will reduce by, but the best bet is the 6 month account.
Good advice by Skrooge to split between 2 accounts.

 

[Martin77]

I would be tempted to phone the banks individually and ask about their current fixed term deposits. My experience is that for the amount of money you're talking about that the individual managers have some latitude on rates. These aren't always advertised on the web as it may be used by others as a signal to their current liquidity. It pays to shop around. And it definitely pays to check what guarantees are applicable to that particular account or bond, what limits there are, and who pays the compensation in the (unlikely) event of bankruptcy. e.g. Rabo accounts are usually backed not just by their own AAA rating, but by the Dutch government scheme 100% up to 100K. Whereas others are back by the Irish government scheme. Some offshore accounts with otherwise familiar names and attractive rates are not covered at all by these (domestic) protection schemes, so watch out. That was one reason why I closed my offshore money accounts in the autumn last year.

Check out this post http://www.askaboutmoney.com/showthread.php?t=101813 for best buy info.