What to do with lump sum?

JohnCleary

Mod's I hope this is in the right place, please move if necessary

OK so imagine you've been saving for a while, and you have a nice little lump, around €40k

I want to put this away in some sort of savings account to try and earn as much interest as possible.

Here's the low down:
I don't want to touch it 4 years
However, if in the case of an emergency, I do want to be able to have access to it
I have a 3rd level BOI account atm. Never owed the bank any money, never even bothered with an over-draft
I have a Credit Union account with a few quid in it

So basicly I want to know where can I get the best deal on a Savings account that I won't touch for 4 years

Any ideas guys? I plan on calling into BOI and the Credit Union next week

Thanks in advance

irish_bob

JohnCleary wrote: »

Mod's I hope this is in the right place, please move if necessary

OK so imagine you've been saving for a while, and you have a nice little lump, around €40k

I want to put this away in some sort of savings account to try and earn as much interest as possible.

Here's the low down:
I don't want to touch it 4 years
However, if in the case of an emergency, I do want to be able to have access to it
I have a 3rd level BOI account atm. Never owed the bank any money, never even bothered with an over-draft
I have a Credit Union account with a few quid in it

So basicly I want to know where can I get the best deal on a Savings account that I won't touch for 4 years

Any ideas guys? I plan on calling into BOI and the Credit Union next week

Thanks in advance

irish nationwide are paying 5% on savings on sums over 20 k with a 3 week notice for withdrawl , there paying 5.1% on savings if you prepared to leave it in for a year

anglo irish bank are paying 4.5% on sums up to a million with a 30 day withdrawl notice

there the 2 best right now by a long way on large sums

JohnCleary

Nice one, thank's for that. Into Irish Nationwide during the week so

The_Hustler

I find askaboutmoney a great site for those questions. All the rates for lump sum investments are here http://www.askaboutmoney.com/showthread.php?t=27891
and fixed term are here http://www.askaboutmoney.com/showthread.php?t=36883, but as you said you do want to access them.

I don't see anything about the 5% Irish Nationwide rate and that site is always kept up to date. I do see the 5.1% for one year though, and it looks like Anglo Irish rates are going up to 4.75% real soon.

Maybe it would be better to open a few accounts and spread the amount, as the likes of First Active offer 5.22% on balances up to €15,000, and then you could put say €10,000 in Halifax at 5.15% etc. Don't forget Northern Rock are 5% on up to €3m.

Most would advise you to open one of these and then drip feed into a regular savings account, many of which give you 7% or more e.g. AIB is 7.3%. This means the payments will be earning around 5% in the original account and then around 7% in the regular saver so you end up with something between 5 and 7%.

JohnCleary

Thank's a mil for the links, great advise

moe_sizlak

The_Hustler wrote: »

I find askaboutmoney a great site for those questions. All the rates for lump sum investments are here http://www.askaboutmoney.com/showthread.php?t=27891
and fixed term are here http://www.askaboutmoney.com/showthread.php?t=36883, but as you said you do want to access them.

I don't see anything about the 5% Irish Nationwide rate and that site is always kept up to date. I do see the 5.1% for one year though, and it looks like Anglo Irish rates are going up to 4.75% real soon.

Maybe it would be better to open a few accounts and spread the amount, as the likes of First Active offer 5.22% on balances up to €15,000, and then you could put say €10,000 in Halifax at 5.15% etc. Don't forget Northern Rock are 5% on up to €3m.

Most would advise you to open one of these and then drip feed into a regular savings account, many of which give you 7% or more e.g. AIB is 7.3%. This means the payments will be earning around 5% in the original account and then around 7% in the regular saver so you end up with something between 5 and 7%.

the adds for irish nationwide are all over the place , cant believe you suggested nothern rock in your post ,

RIP

The_Hustler

moe_sizlak wrote: »

the adds for irish nationwide are all over the place , cant believe you suggested nothern rock in your post ,

RIP

The Irish Nationwide ad is for 5% on sums over €100,000, not over €20,000 as the previous poster said. On sums over €20,000 it is 4.6%. The OP has said he is talking about €40,000, so 4.6% would apply.

In relation to Northern Rock, it's not like I suggested buying shares in the company (which I don't think you can anymore). You do realise all deposits, no matter how much, are completely guaranteed, don't you?

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/25/cmsavings25.xml
The Treasury confirmed this week that taxpayers' money continues to guarantee all savers' deposits with Northern Rock, regardless of their value or when they are made.

The Treasury added: "We have stated that we will give three months' notice before the Northern Rock guarantee is removed and there are no immediate plans to do so."


OP, I do not know much about these matters, so take my advice with a pinch of salt, but the other advice given here seems inaccurate to me so be careful.

I will concede that it may be better to stay away from Northern Rock as you are talking about 4 years, but I don't think it was wrong to mention it in my previous post. If you didn't want to spread it over a few accounts, it does give the best rate. I personally would spread it. You would have to monitor the news for Northern Rock announcements so peace of mind would be a factor.

Just to let you know, I am basing what I've said on the advice of rate tarts i.e. those who switch banks regularly to get the best rates. These are all variable rates that can change drastically from year to year so there will still be some monitoring needed.