nissanfigaro
Registered User
- Messages
- 34
Inflation is about 5% at the moment so a gross return of 5% which is 4% net of DIRT will mean that the lump sum is losing real value.
Angol Irish are quoting 4.76% for 1 year term deposits. This is probably as good as it gets but shop around
Flip it into sterling which is at a low to the Euro. You'll get around £1,181m (69.5p = €1) considering bank spreads. Put into an interest bearing account at 6.3% and it will earn £74,403 before tax or £59,522 after tax. If the currency moves back to its level rate of 67.5p=€1.00 which it has traded to prior to the Northern Rock Shock, you could land €1,838m. A return after tax of €138,000 compared to Anglo after tax at €64,736 (53.1% lower).
True Roland..but it has only gone through the barrier of 70p on one or two occasions, 67.5p is the medium. Maybe with the margin you could hedge through a 12 month future or option.
thanks for the tip
it was something that is being considered
where to get 6.3% - Anglos 's rate has been slowly slipping - today its down to 6.18 for 6 months fixed
what are the tax implications of profitting from flipping currency?
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