Best savings options for €100K deposit in these uncertain times...

[kennedst]

Hi all,

I have a quick question that I'd really appreciate your help with.

I had a deposit of €100K in Permanent TSB (interest first account) which just matured last week. I want to put the money away for another year (and hopefully get a good return) but am not sure what's the best option.

I'm a bit worried about saving in euros as I'm beginning to wonder if the euro will even be around this time next year. Maybe I'm being overly concerned but everything seems so unpredictable and uncertain at the moment.

I'd be very grateful for any advice you have on good savings options that are secure.

Thanks so much for any help you can offer

 

[The Ghoul]

It is understandable that you are worried and there have been numerous threads from posters with similar concerns on AAM, boards.ie, propertypin etc.

Despite all the doom and gloom out there, many reasonable people think that a euro collapse/financial armageddon is very unlikely and will not be allowed to happen.

Ask yourself this -what are the alternatives? Gold? An offshore account in a different currency? It's not as though that is risk free.

For example let's say three weeks ago you had the following choices
1) 100k in a euro account in EBS @ 4.25% gross 1 year fixed term
2) 100k in a Swiss franc account offshore

Had you gone down route 1) your money would have earned ~180 euro interest, slightly ahead of inflation.

Had you gone down route 2) your interest rate would lower. Oh and you'd also be down somewhere between 10,000 and 20,000 in euro terms thanks to the CHF devaluation.

This is just an example but shows what can happen when someone "takes decisive action to protect their money"