Split SSIA lump sump investment in Regular Saver Accounts

Hi,
I am looking to get advice on investing my SSIA (about 20k) for approximately 1 year to 18 months, reason being I would like to buy a house in the future but don't want to tie up the money longterm.

I wanted to ask whether it would be feasible to open multiple regular saver accounts and have them take the contributions from my SSIA funds (in my current a/c) over that length of time?

Please forgive the below approximations, I am not very good with figures.

I've looked at the options for investing the lump sum with Rabo and Northern Rock - approx 4.75% or thereabouts for the year. One of the posts showed approx €800 gain on 20k invested for a year.

The regular saver rates look more attractive - Halifax @ 6.65% for example, max of €750 a month would mean €9000 invested over a year - interest of approx €500.
Combine this with similar with BOI @ 6.25%, max of €1000 a month would mean €12000 invested with interest of approx €700.

Add up the interest from both and you get about €1200 - am I way off the mark here or is this something that could be done? If so, would it be feasible?

Thanks.

mm12 said:

The regular saver rates look more attractive - Halifax @ 6.65% for example, max of €750 a month would mean €9000 invested over a year - interest of approx €500.

Click to expand...

This is wrong. See here for example. On a similar basis using the same calculator €750 per month for 12 months into this account yields €321 interest gross or €257 net of DIRT.

Combine this with similar with BOI @ 6.25%, max of €1000 a month would mean €12000 invested with interest of approx €700.

Click to expand...

No - using the calculator again it's actually c. €402 gross or €322 net.

Add up the interest from both and you get about €1200 - am I way off the mark here or is this something that could be done? If so, would it be feasible?

Click to expand...

Yes you are off the mark but it's not surprising since the headline rate figures don't tell the full story on regular saver accounts. The total net interest will be closer to €579 rather than the €1,200 that you estimated.