10k savings,what to do

fire_man

As title says,i have 10k in my savings,what should i do with this?I might look to buying a house in 3-4 yrs.thanks

Delta2113

http://www.statesavings.ie/Pages/default.aspx


3 or 4 year options you should check out.

dnme

Delta2113 wrote: »

http://www.statesavings.ie/Pages/default.aspx


3 or 4 year options you should check out.

Can someone explain this to me
http://www.statesavings.ie/products/Pages/NationalSolidarityBond4.aspx

If you put 10k in, what comes out after 4 years ?

Pablo Sanchez

€10,800.

The €800 gain will be subject to DIRT at the rate applying when it matures, but if the rate stays at 41%, you will receive €472 into your hand.

manonboard

Pablo Sanchez wrote: »

€10,800.

The €800 gain will be subject to DIRT at the rate applying when it matures, but if the rate stays at 42%, you will receive €472 into your hand.

Thats really *** after 4 years... It's depressing how little savings can make these days.

I'm in a similar boat OP.. Been trying to find a place for my mothers savings. It's barely worth looking any savings account. Low interest rates, high DIRT tax, inflation. You'll barely make anything.

Would you consider perhaps something more risky? An investment in shares or perhaps investing your own in some kind of personal venture?

dnme

I thought these Post Office NTMA investments were DIRT free?
Also, Can someone explain to me how €10800 was calculated ?

bbam

The truth is you're not going to get much on it over that term..
And the government would rather you spent it now, thus the savage increase in DIRT

Pablo Sanchez

From the link:

Gross return of 8% over 4 years on your investment (Gross AER 1.94%)

8% of 10k is €800.

Some state savings products are DIRT free, some of the shorter term ones (like the above) are not.

morebarn2

All savings in An Post/State savings are tax-free. So it makes them worth quite a bit more when you consider that a huge 41% comes out of all other saving products. I have had them since the early 1990s. Its still not a great return,I agree. But at the moment,for a sum like E10,000, its about the best that can be got. Also there is very little risk involved, you can be sure of your capital sum and inter est being there when you require them.

However, the banks are now making noises about how they will be losing deposits to An Post, and will probably want to have these savings taxed; Hope the Government dont give in to them this time.

Pablo Sanchez

morebarn2 wrote: »

All savings in An Post/State savings are tax-free. So it makes them worth quite a bit more when you consider that a huge 41% comes out of all other saving products. I have had them since the early 1990s. Its still not a great return,I agree. But at the moment,for a sum like E10,000, its about the best that can be got. Also there is very little risk involved, you can be sure of your capital sum and inter est being there when you require them.

However, the banks are now making noises about how they will be losing deposits to An Post, and will probably want to have these savings taxed; Hope the Government dont give in to them this time.

My apologies, you are correct, it is DIRT free, i was getting mixed up with the regular saver account.

morebarn2

Sorry, just wanted to edit my reply above !

I have had Savings Certificates and Savings Bonds only. And they have always been Tax Free. I may be wrong about normal deposit savings etc.

I dont have the documentation at hand right now, but you can easily obtain the leaflets in any Post Office, and it will show you how the interest grows each month and what you will earn on a given amount.

Unfortunately the Interest Rate was cut earlier this year, but it is still a lot better then the general run of Bank products.

JTMan

All savings in An Post/State savings are tax-free

Incorrect.

Pablo Sanchez wrote: »

My apologies, you are correct, it is DIRT free, i was getting mixed up with the regular saver account.

Don't apologise! The 4 year product is not fully DIRT-free.

The following State Savings products ARE subject to DIRT:
Instant access account
30 day notice account

The following State Savings products are PART subject to DIRT:
4 year solidarity account
10 year solidarity account

The following State Savings products are NOT subject to DIRT:
3 year 'bond' account
5 year 'bond' account

State Savings rate have been cut twice this year, none of the above accounts pay very high rates. However, the 'grossed up' AER is higher than banks for the longer term account.

dnme

Pablo Sanchez wrote: »

From the link:

Gross return of 8% over 4 years on your investment (Gross AER 1.94%)

8% of 10k is €800.

Some state savings products are DIRT free, some of the shorter term ones (like the above) are not.

Folks, surely it's not just that simple. Is it not compounded in much the same way a loan would be ? If I borrowed 10k @ 8%, I wouldn't pay back €10800, and I assumed savings worked the same way.

Anyone

dnme wrote: »

Folks, surely it's not just that simple. Is it not compounded in much the same way a loan would be ? If I borrowed 10k @ 8%, I wouldn't pay back €10800, and I assumed savings worked the same way.

8% is the amount paid over 4 years, the AER is 1.94%. If you got a loan of 10,000 over 1 year at 8% you would pay aprox 450 in interest.

Whyner

I'm currently in the same position.

Are there any decent options for 10k these days?

JTMan

Whyner wrote: »

Are there any decent options for 10k these days?

How long can you lock for? or do you need instant access?

Sheeps

Look at Irish life investment products.