Best return after 5 years

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belle185

Registered User
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Hi there am new to this !!
i was just about to put 10 grand into an post saving certs for 5 and a half years for a return of 2100 according to them DIRT free when i was told it is defo not the best place to save it anyone got a better idea !! i dont want a risky product
thanks
 
See the Financial Best Buys forum for details of deposit rates on offer right now. Many of these are much better than the rates on offer from An Post and may continue to be for the next while. An Post rates used to be competitive when compared to other low risk deposit type products but have not been for a while now.
 
While I agree saving certificates are not the best buy out there one could argue they are the safest. Many savers do not have full trust in banks and financial institutions and feel more comfortable with saving certificates 'state guaranteed' and 'DIRT free' tags. It boils down to personal choice and with the new rates announced lately I would not dismiss An Post saving products. As a former An Post employee I am well aware of the number of people who preferred to save with the above assurances rather than opt for higher rates elsewhere.
 
Savings Certs currently offer 3.53% CAR fixed, state guaranteed and tax free, over the 5.5 year term. This is the equivalent of 4.4125% gross CAR on a deposit account subject to 20% DIRT on interest. At the moment you can get better rates than this on demand and term deposit accounts. Obviously nobody can predict what variable deposit rates will be over the next 5.5 years though. On the other some banks may offer c. 5 year fixed rate deposit accounts with better rates - e.g. [broken link removed] have a 5 year fixed rate deposit account offering 4.43% gross CAR. I have no idea if this is the best c. 5 year rate on offer so shop around if such an account might be suitable. Remember that CPI inflation is c. 5% (HICP - inflation excluding mortgage costs - is c. 2.7%) at the moment so if you are not at least earning that on your money then its real value is falling. Inflation is one of the reasons that seemingly risk free deposit products are not necessarily so risk free.
 
Yes, I am aware of all that. My point is a considerable number of savers and investors feel safer avoiding banks and rest easy with 'state guaranteed' endorsed on their money. This morning the holders of saving certificates are waking up much happier than Northern Rock savers and investors.
 
I don't disagree with you. People need to consider all factors (e.g. including returns, guarantees etc.) when choosing a savings/investment option that suits their specific needs. Bear in mind that the NR thing (see the other thread on this specific issue) is arguably overblown in the media etc but time will tell.
 
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