Where to save money?

S

sillyaboutmo

Registered User
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94
hi guy's
My brother recently came into money. it was compensation for an accident. he wants to put it away for a couple of years until he finishes collage. he wants it to gain some interest obviously, so where's the best place to put it.
he has 30K and wants it in a deposit account or similar for 3 years.

thanks
mo
 
State Savings account can be opened in most An Post branches, it is a straight forward process.

If you have any questions, after reading the best buys, just ask.
 
so if he put it in state savings he would get a 2.28% return for every year tax free. so after the 3 years he'd have a return of 2052? is this correct.
 
sillyaboutmo said:
so if he put it in state savings he would get a 2.28% return for every year tax free. so after the 3 years he'd have a return of 2052? is this correct.
Click to expand...

No. The AER rate is for comparison with other rates paid annually and compounded. You've used a simple rate of 2.28%, not compounded.

The easiest way to calculate it is to use the actual total return for the 3 yr Savings Bond product which is 7% (AER 2.28%). 7% of 30k is 2,100.
 
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