Some advise on beating inflation but still having access to money.

[s2000]

Hi there,

Mu Mum retired this year and got a lump sum and had a pension coming in. Because of circumstance she does not want to put her money into a very long term deposit account. She has around 50,000 just sitting in an ordinary bank account now. She is thinking of putting about 15,000 into a 5 year fund and keeping the rest for things that are coming up on the next 3 years or so....but she does not want the capital devaluing.

Where is the best place to keep a lmp sum like this, so you have access to it (even with a few months notice etc) but it still makes around the inflation amount for you?

Thanks a million as always,

Adrian

 

[Financeguru]

Hi Adrian,

If you are looking for capital security and your term is around 5 years, you can try

1) Hibernian's spectrum bond -
min investment € 6,000
Access to money when you want
Capital guarantee - worse case scenario - get back what you put in after 5 years

2) Eagle Star's protected fund Bond ( returns of around 12/13%) since they started.

Min invesment € 5,000


All these bonds and most bonds have a 5/4/3/2/1 charging structure which is if you encash partially or fully anytime in the first 5 years there is a surrender charge of 5% year 1 etc. Also, be aware of tax due to government on all investment products post 2001 - ie 23% on gain you make on bond. Automatically taken off when you partially encash or fully encash policy.

Hope this is of help.

 

[ClubMan]

( returns of around 12/13%) since they started.

Past performance is no guide to future returns.

 

[liteweight]

Have you had a look at some of the keyposts on saving and investment. AIB regular Saver 300 pm max. = circa 6% interest. Norther Rock online circa 4% etc. There are many more. Your Mum might feel more comfortable with a comparatively high yielding deposit account rather than risking her capital.