Best options to get 30K working!

L

leonkings07

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After some research done on AMM I’m closer to knowing where would be best to put €30K. Just wondering which of these options would give me a better return?

  • Put the whole amount into Irish Nationwide account @ 5.1% AER for one year or maybe longer (don’t have any immediate plans)
  • Put €14500 into FA e saver account, €9500 into Halifax flexi saver & maybe just the rest in deposit account.

What does anyone think of these options? Or could anyone offer any better advice?

I understand from looking at different threads here that the best thing to do with a lump sum is split it between different account types but as I’m not very financially savvy...want to keep it simple enough! I just don’t want to let the money sit in my UB current account doing nothing but am just looking for a quick simple option to get the money doing anything!

I looked into getting professional financial advise but I think that initial fees of €1000 are a bit high. So any advice is much appreciated.

Thanks again
 
As ever if deposit returns are your main focus here then see the Financial Best Buys lists of the best demand and term lump sum and regular saver deposit accounts/rates on offer and the many existing threads on how to mix and match multiple such accounts to get the best returns.
 
I have Clubman on several occassion but as I've said - not
financially minded like your self and others that post here on a regular basis so was hoping for a bit more direction.

Maybe €1000 for financial advisor would be money well spent!
 
If you don't understand the existing discussions on mixing and matching multiple lump sum and regular savings deposit accounts then you need to read stuff like the key posts and the introductory/summary guides on www.itsyourmoney.ie etc. If you still don't understand things at all then you probably do need independent, professional advice. Where does the €1K figure come from by the way?
 
Leon I think you would be nuts to spend 1k on financial advise.

This would wipe out any gains you make in interest.

You need to ask yourself a couple of questions about what your expectations are for returns on your lump sum & also what level of risk you are prepared to take, when you think you might need the money etc.

You have 2 good options

(a) Put your money on deposit ( There are multiple options here & pretty much no risk involved )

To split 30k between these I would do the following.

Put 14500 into a First Active esavings account. Pays 5.22% interest on sums from 1 to 15k. Go over 15k & the rate drops to 4.33% for the entire amount.

Put 10k in the Halifax Flexi Saver. Pays 5.15% on sums up to 10k Rate drops to 4% on amounts over this but the important thing to note here is that the 5.15% rate is paid on the 1st 10k regardless of the amount you have in there.

Put the remaining money into either an Ulster Bank esavings account or a Rabodirect account. Both of these are online but reasonably easy to setup.

There is more detail on all of these in the Best Buys Forum.

You could also go down the regular savers route but to be honest these accounts are heavily laiden with restrictive terms & conditions & the rates are variable. The banks tend to give these rates out to get your business & then drop them after a period of time. They then start up a new account with the same rate but you have to go to the hassle of opening a new account all over again. I find this particularly annoying.



(b) Regular Unit Linked Execution only Investment Funds ( I suggest you read up on these. There is plenty of material on this site which will help explain these. There is an element of risk here as the value of shares can fall as well as rise but historically the stock market has always outperformed deposit accounts ) I would advise you to read up on Quinn Life Freeway Funds. Their charges are just about the lowest available.

Hope that helps somewhat.
 
Just to add to Paulinuts deposit suggestions, If leonkings07 has a Mrs he could open two accounts with First Active €14,500 in each. Also look at AIB on line 7 day account, 5% on limit of €10,000. And dare I say it Northern Rock are still there, 5% demand on line. Some would say stay clear of Northern Rock because of events last year, others will argue it is now the safest bank around.
 
With soundings of interest rate cuts later in the year which may or may not happen, i think the variable offerings mentioned would be inferior to the fixed rate 5%+ offerings going around at the moment.
The likes of FA and UB which dont guarantee to be above the ECB rate at a given time in the future would likely pass on a ECB cuts to their savings accounts so there is risk there in contrast to the fixed rate offerings.
 
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