Starting a savings account - best option?

seamus

Right, I'm in need of your esteemed advice.

I'm 23, and I've never had a proper savings account. So I need one. I had received a rake of shares a few years ago, which have been sold on my behalf last week, and I want to get the best return on my money. I didn't want to leave them in shares, since this is pretty much money I will need soon enough when I go house hunting, so I need somewhere stable to put it. Shares aren't dangerous, I know, but at this point I can't really afford to have a shedload of my money just floating around the stock market.

For some reason I'm drawn to the credit union, but does anyone else have any opinions on the best way to save it? Most people I've asked have said "Doesn't matter where you put it, all savings accounts are the same now."

My intention is to start the account with this base amount and throw a couple of hundred euro on top of it each month.

Cheers.

ionapaul

Northern Rock Demand Online account - I am getting a 2.8% gross with them.

That said, invest in Royal & Sun Alliance and you'll get a 6% dividend and the possibility of capital appreciation! The banks pay out nice dividends too. Probably too risky for you, but worth thinking about.

seamus

Cheers ionapaul. I think I'll go with Northern Rock, aside from the decent interest, an Internet-only saving account would suit me best.

hussey

I went with northern rock too - they seem very good and had no problems with the account
at the moment you can get 3.00% apr (for the first 6months) then it goes down to 2.75%

paddyc

How do you sign up for this account and how long do you have to sign up for, is there a time period ??

thanks paddy

De Rebel

ionapaul wrote:

Northern Rock Demand Online account - I am getting a 2.8% gross with them.

Only way to go. I've been with Northern Rock for over 5 years - and only good things to say about them. Consistently good interest rates, efficient service, knowledgable customer support staff, innovative products. I've made a lot more from them than I would have from any of their competitors from money that I need to keep available for use at short notice. The only word of caution is not to put all of your eggs in one basket (There is no reason to doubt NR's solvence, but remember AIB once upon a time was under threat of insolvency until they were underwritten by Garrett FitzGerald's Government). If thats a concern, you could split your deposit 50/50 between NR and an Anglo Irish short notice account for peace of mind.

ionapaul wrote:

That said, invest in Royal & Sun Alliance and you'll get a 6% dividend and the possibility of capital appreciation! The banks pay out nice dividends too. Probably too risky for you, but worth thinking about.

Two issues with this. (1)original poster exited shares because he wants to consolidate his bobs and prepare for a househunting exercise. last thing he need is to get back into shares. (2) RSA. Have had their ups and downs. Leaderless/Directionless are terms which could currently be applied to that company. While the company appears to be on a steady course, appearances can be deceptive. I certainly wouldn't put my house downpayment on any insurance company, and particularly not that one. My opinion, for what its worth.

De Rebel

paddyc wrote:

How do you sign up for this account and how long do you have to sign up for, is there a time period ??

thanks paddy

Sign up here

No notice period, its a demand account. When you withdraw money, it is either paid to your regular bank account (2 days) or posted to you in the form of a cheque (3/4 days or more depending on the postal service). There is also a same day value transfer withdrawl available, but you pay for that and there are some conditions.