Some advice needed for young savers

C

Cavangal

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I hope I have this in the right place. The kids have BOI young savers accounts. They have small balances and I'm adding a small weekly payment to help it along with the hope that in 7 or 8 years if they decide to go to college there will be a few thousand to help.

The interest rate is 0.25% so should I look at something else?
 
If you have a mortgage, overpay it instead. Keep a record in a spreadsheet of the payments made and the interest saved and then hand that over when it is needed.
 
If the use of the money is to pay for 3rd level education, there is no need to keep it separate, it is part of the overall income.

I would only use it to overpay the mortgage if it is going to clear the mortgage before they go to college. Otherwise you will have a clear mortgage after they have finished college but a cashflow issue when they are in college.

You can always set up a regular saver with an insurance company and get the markets to pay for some of the cost of college.


Steven
www.bluewaterfp.ie
 
For that time frame it would be better to invest rather than deposit. If you're set on bank deposits then BOI have a SuperSaver account which pays 3% at the moment. Absolutely get it out of the 0.25% account.
 
Steven Barrett said:
If the use of the money is to pay for 3rd level education, there is no need to keep it separate, it is part of the overall income.

I would only use it to overpay the mortgage if it is going to clear the mortgage before they go to college. Otherwise you will have a clear mortgage after they have finished college but a cashflow issue when they are in college.

You can always set up a regular saver with an insurance company and get the markets to pay for some of the cost of college.


Steven
www.bluewaterfp.ie
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What would you recommend?
 
Djimi Traore said:
For that time frame it would be better to invest rather than deposit. If you're set on bank deposits then BOI have a SuperSaver account which pays 3% at the moment. Absolutely get it out of the 0.25% account.
Click to expand...
What would you recommend?
 
time to plan said:
If you have a mortgage, overpay it instead. Keep a record in a spreadsheet of the payments made and the interest saved and then hand that over when it is needed.
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How does this work in practice? Since the overpayments are held in the equity of the house.

Wouldn't you need to save the same amount separately in cash/deposits to have something to hand over?
 
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Yoga Woga said:
If you can, get a UK account with Monzo, the interest gain is excellent.
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What's the interest rate and what currency is it denominated in? If it's sterling (I'm assuming the op is mainly earning/paying euro) you'd need to factor in the currency risk.
 
You can get close to that in euro without the currency risk.

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