Not sure how many expert replies you'll get but my throwaway opinion is that rates are so poor that if I had 20k that I'd probably need to access within 5 years I'd likely just get Prize Bonds. However if it was an unexpected windfall I wouldn't bolt it into my numbers at all and instead shoehorn it into an AVC (effectively turning it into a 33K AVC, assuming PAYE @ 40%).What would the experts on here recommend?
You say the state savings by far the best option.You've read the State Savings option wrong -- 0.98% is not the total. It's AER 0.98%, total return 5%, or €1k on your €20k, €200/year tax free. It's by far the best option of the ones you've listed. (But still rubbish). Also you'll pay a flat rate of 41% tax on the KBC Investment Funds, not DIRT.
Savings on deposit and investments are not comparable. It's completely down to the aims and risk appetite of the punter. Personally I wouldn't touch a managed investment fund. That's because I don't touch things I don't intimately understand and those things seem to make a virtue out of opacity. The fact that the banks are hounding me to invest is enough to tell me to steer clear. I am just an average person trying to make sense of things but I prefer to make my own mistakes, thank you very much.You say the state savings by far the best option.
By this I take it you wouldn't condone putting money into something like the KBC investment funds?
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Does anyone actually win anything on prize bonds?
I would say €40k is the absolute minimum. That gives you a 50% chance of winning either one or two €50 prizes per year, but returns may still be lumpy. €100k would be a better bet. However, the average return is still only a quarter of a percent (tax free) regardless of how much you invest. Not worth the hassle in my opinion.what is enough to give a chance of a decent return Palerider on the prizebonds ? Or are the chances getting longer given that people are still buying them in large quantities. I know a relative bought 10 k worth lately
what is enough to give a chance of a decent return Palerider on the prizebonds ? Or are the chances getting longer given that people are still buying them in large quantities. I know a relative bought 10 k worth lately
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