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Saving €500 for 10 years for daughter

  • 09-01-2020 10:19pm
    #1
    oghran
    Registered Users Posts: 103 ✭✭


    So a family member gave me €500 for my daughter, to save for her until she’s 18. That’s about 10 years which the money could be left untouched.

    What’s the simplest, safest option with some kind of return? I’m thinking some kind of government or post office bond? Is there a better option these days?


Comments

  • #2
    hammerdub
    Registered Users Posts: 84 ✭✭hammerdub


    Buy prize bonds. ??


  • #3
    AvonEnniskerry
    Registered Users Posts: 354 ✭✭AvonEnniskerry


    I'd lodge it into a 10 year savings account with an post (personally)


  • #4
    28064212
    Registered Users, Registered Users 2 Posts: 10,751 ✭✭✭✭28064212


    Prize bonds are probably the best option. There doesn't seem to be much point locking it away for 10 years for the total return of €80 (10 year State Savings at 16%). At least with Prize Bonds you have the (low) possibility of a big win, and if necessary you can access it before then.

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  • #5
    oghran
    Registered Users Posts: 103 ✭✭oghran


    Thanks for the advice. Best I found on the An Post website was 16% for a 10 year bond, which will give me €580. Not great to be honest, so I think I'll just stick in a savings account with the bank, and keep adding my own money to it each month instead.


  • #6
    drunkmonkey
    Registered Users, Registered Users 2 Posts: 28,295 ✭✭✭✭drunkmonkey


    Open a Degiro account and invest it all in Microsoft or Disney shares. She'll be accumulating dividends for 10years as well as any capital gain which I would expect to be a lot higher than the an post offer.


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  • #7
    oghran
    Registered Users Posts: 103 ✭✭oghran


    drunkmonkey wrote: »
    Open a Degiro account and invest it all in Microsoft or Disney shares. She'll be accumulating dividends for 10years as well as any capital gain which I would expect to be a lot higher than the an post offer.

    And 41% deemed disposal tax after 8 years as well I assume? That might not make it quite such a good return.


  • #8
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,090 Mod ✭✭✭✭AlmightyCushion


    oghran wrote: »
    And 41% deemed disposal tax after 8 years as well I assume? That might not make it quite such a good return.

    There is no deemed disposal on shares.


  • #9
    oghran
    Registered Users Posts: 103 ✭✭oghran


    AlmightyCushion wrote: »
    There is no deemed disposal on shares.

    Oh interesting, that I did not know. Something I need to look into that as I have a Degiro account I got for ETFs (which were discontinued). I guess maybe individual shares might actually be a bit simpler for tax.


  • #10
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,090 Mod ✭✭✭✭AlmightyCushion


    oghran wrote: »
    Oh interesting, that I did not know. Something I need to look into that as I have a Degiro account I got for ETFs (which were discontinued). I guess maybe individual shares might actually be a bit simpler for tax.

    Yes, ETFs are deemed disposal. Normal shares are income tax on dividends and CGT on profits when selling.


  • #11
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,223 Mod ✭✭✭✭godtabh


    drunkmonkey wrote: »
    Open a Degiro account and invest it all in Microsoft or Disney shares. She'll be accumulating dividends for 10years as well as any capital gain which I would expect to be a lot higher than the an post offer.

    I've something similar to do. How would one go about this?


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