Best Deposit Acc for €1.5k Lump Sum?

R

Rodo

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Hello All,
first time poster. I would appreciate your advice please.
I have a credit union account for my baby, in their name (if that's of any relevance?), with €1,500 saved. At year end after DIRT etc there was interest applied of around €5.
I am looking for advice on best place to put this lump sum please? As far as I can see I don't meet any of the minimum thresholds for the accounts listed in the Deposit Best Buys and I am not in a position to put any other savings towards it.
I was thinking perhaps a 3 year State Savings Bond? We are talking v little interest given the amount but hoping to do better than what the credit union can offer at present.
Thank you for reading,
Rodo.
 
Hi Rodo,

A small number of products have low minimum thresholds.

The 3 year State Savings product pays 0.99% AER tax free. A small return but the rate is fixed and it meets your deposit level.

Another option would be to go with a regular saver product that has a low minimum monthly deposit requirement. PTSB pay 2.10% on their Online Regular Saver product. You could deposit 1,000 EUR in month one, 500 EUR in month two and then just 1 EUR each month thereafter.
 
CiaranT with your suggestion of lodging €1 per month after month are you not going to be potentially hit with bank transaction fees from the account which is being used to lodge money into the savings account?
 
sebadoh said:
CiaranT with your suggestion of lodging €1 per month after month are you not going to be potentially hit with bank transaction fees from the account which is being used to lodge money into the savings account?
Click to expand...
I would suggest this is an issue with the choice of current account, not savings strategy. No fees applicable from PTSB/KBC current accounts.
 
Your title refers to a deposit account, but your question in your post does not:

I am looking for advice on best place to put this lump sum please?

I'm going to take the liberty of answering that question.

If it's for your baby, implying a very long time horizon, you need to let the stock market work its magic on it.

I would open an account with Rabodirect, and invest in some index-tracking investment funds. There are cheaper options, but I am assuming you would be lodging more small amounts over the years to the same account, and Rabo makes that very cheap.
 
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