Basic saving account help

I

ipredictdeat

Guest
Hey just wondering if anybody can help me here. This is a very basic question, but i really only got going on sorting my finances out very recently so excuse my ignorance.

Basically i have a lump sum of €12'000 which i want to lock away some place and get a good return. But i also want to have a regular saving account aswel.

I was wondering would i earn more if i stuck that 12 grand into a lump sum account and then also set up a seperate monthly saving account, or would i be better off lodging all of that into a regular saving account and then just add to it every month?

Ive been searching the internet for info on this and i just cant see it. I dont understand the pros and cons of both types of account. Is there any place i can go which explains all this basic stuff?

Thanks in advance folks.
 
Have you checked the key posts and best buys threads in this section of the site?

You'll get the best return wherever you get the best rate regardless of whether it's a regular saver or lump sum account.

Most regular saver accounts are just that and will not allow for initial lump sum deposits anyway.
 
Your own Bank will have a Wealth Management expert who will give you the basic information you require. They will obviously point out the advantages of their own products but final decision would be up to you
 
Not sure exactly what you are asking - are you talking about feeding your 12k into a regular saving account, say, 1000 quid at a time (that would generally be the max) vs putting all of the 12k in a fixed term deposit account?

Be careful when looking at the rates for regular saving accounts. You will see rates like 5% quoted which look higher than those for fixed term deposit accounts.

However if you put in 1000 each month into a 5% regular saver account for 12 months, at the end of one year the interest rate on your 12k will be approx 2.5%. OTOH, if you put in 1000 euro the first month and then 1 euro (if allowed) for the next 11 months, your interest rate on the 1011 quid will be very close to 5%.
 
Best would be to put the 12k onto a fix term account. Depending on how long you want to lock it away you can get pretty nice rates at PTSB for example. But this will be to you to inform and make the decision about which bank is save to put on and for how long with what interest rate.
If you then have something to save every month you can open for example open a regular savings account at Ulster. You have to setup a direct debit monthly saving but can transfer up to 1k every month onto it and you can access it at any time for withdrawals via their online systems assuming you will have a current account there too. They give 4% up to 15k which is not bad.
http : // www . ulsterbank.com/roi/personal/saving/regular-savings/sida.ashxa

As mentioned above this option is not a good idea for the lump sum and ideally I would spread your savings over several banks to reduce the risk.
 
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