Best place to save or invest €20k??

F

familyguy

Registered User
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I had a sum of 20k approx in a long term fixed rate savings plan with AIB which recently matured. I received my final interest payment and not the bank are desperate for me to come in and put my savings into another plan with them but I know that interest rates have taken a dive.

I'm not at all savvy in terms of investments or finances hence this post.
I see there is a sticky thread on an EBS option which looks inviting.
This is basically rainy day money which I am trying to avoid having to delve into so I could potentially lock it into another say 5 year fixed rate account if the terms were attractive and it offered a decent return interest wise.

I would welcome any fundamental advice on what the best options are.
I don't know enough about stocks or shares to go delving into those markets so its most likely a matter of what is the best financial institution around to save my money with.

I'd appreciate any help you can offer?

Thanks
 
If you are genuinely happy to lock for as long as 5 years, then consider the below product.

State Savings: Savings Certificates 17th issue
  • 5 Years 6 Months 3.53% (A normal deposit account would need to be paying *5.04% to match this rate because this product is not subject to DIRT at 30%.) **High Rate**
  • Maximum: €120,000
  • Early withdraw is possible but is subject to interest penalties. Interest is not accrued on a daily basis, it is accrued each six months from date of purchase. You can withdraw at any time during the term but you will loose any non accrued interest.
  • Deposit Protection: Unlimited via Irish government sovereign debt guarantee.
Click to expand...
 
Hi I am in a similar situation with approx the same amount of money to save. I have it in a low yielding account as I am nervous to ''lock it away'' as things are still so unpredictable. What would be the total if the 20k was put into this for the 5yrs 6 mnths?
 
Thanks Ciaran. Sounds like a solid option. Would you have any points or info on pros/cons?
 
Just wodering what the current thoughts are on the Irish government not being able to repay this in 5 odd years time? Thanks.
 
NewRoss said:
Just wodering what the current thoughts are on the Irish government not being able to repay this in 5 odd years time? Thanks.
Click to expand...

Exact same risk as Irish sovereign debt. 5 year bonds have dropped significantly in yield terms in recent months but still have a large spread over German bonds. Risk of default is far from zero.
 
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