Where to Invest 60K?

[agricola]

I have 20K to invest and my wife has 40K to invest. Seems that An Post is offering the best rate over 5 years, which we can leave it there for, but is there some other place that might give near as good a return but over a shorter period? Or what would be the advice regarding what to do with such a sum?

 

[Lightning]

Are you after the highest rate are do you have other requirements?

If you are after the highest rate you have 2 options
1) Lock for 5.5 years with An Post and run the risk that rates will go up over the next 5.5 years.
2) Lock for say 1 year and review rates after 1 year.

With ECB at record lows, most people expect rates to go up over the next few years. You might be better off with option 2.

Best Buys - Highest Term Deposit Rates

6 Months - Irish Nationwide - 3.33%
1 Year - Anglo Irish Bank - 3.60%
2 Years - Irish Nationwide - 3.49%
3 Years - An Post - 4.30%
5.5 Years - An Post - 4.70%

 

[agricola]

Thanks for that. Not having to pay DIRT with An Post is attractive but having to put the money in for five years to gain the rate is a bit off putting. If deposit rates are expected to rise, as you indicate, it may be better to put it into Anglo for a year. Am I right in thinking that when the gov guarantee runs out in Sep 2010 that it really does not matter with Anglo, as the gov owns it anyway and so our money will be secure?

 

[OPTIMUM]

You would be covered by the Irish deposit protection scheme for up to 100,000 regardless of which Irish institution you decide to deposit with.