Where to put lump sum?

[leonkings07]

Hi

I was hoping I would be able to get a bit of advice; I have rec’d a lump sum of €45,000 – I want to invest/save €35,000 of this. I have already paid off any outstanding loans so have no debts and I’m renting at the moment with no immediate plans to buy.

Is there a difference between a saving and deposit account or are they one and the same?

I seen online that First Active seem to have the best EAR rate – is this rate what is most important when considering a savings account? Also what is the difference between Demand EAR, 1 & 12 month fixed EAR? When setting up one of these accounts can you pick either a fixed or variable rate?

Would some people be of the opinion that it would be a good idea to invest some of this money by purchasing shares?

Sorry for the many questions am clueless with this side of things!

Thanks

 

[ClubMan]

Re: Where to lump sum?

Where to lump sum?

Is there a difference between a saving and deposit account or are they one and the same?

No difference. See the Financial Best Buys forum lists of the best term and demand lump sum and regular saver accounts/rates on offer and the many existing threads on how to mix and match these to achieve the best overall deposit interest returns.

I seen online that First Active seem to have the best EAR rate – is this rate what is most important when considering a savings account?

Yes - EAR, AER, CAR etc. are the rates to consider when comparing different deposit accounts.

Also what is the difference between Demand EAR, 1 & 12 month fixed EAR?

Demand means you can get your money as soon as you want it. Some accounts may have notice periods (e.g. 7 days, 30 days etc.) and some may be fixed term accounts in which case you cannot get access to your money as soon as you want it at all or without penalty. Regardless of the access to the money some rates are variable and subject to change while some are fixed (usually involving a fixed deposit term too).

When setting up one of these accounts can you pick either a fixed or variable rate?

Depends on the account.

Would some people be of the opinion that it would be a good idea to invest some of this money by purchasing shares?

Depends. You should maybe read the key topics and the information booklets on www.itsyourmoney.ie to get an idea of things to consider when determining what savings and investment options are appropriate for your specific needs.

Sorry for the many questions am clueless with this side of things!

Perhaps you should consider getting independent, professional advice from somebody who can do a detailed fact find and financial review? In the meantime maybe stick the money in the highest yielding deposit account(s) suitable to your specific needs and read up on some of the material that I mentioned above.

Don't forget to consider your pension needs if applicable.

 

[leonkings07]

Thanks very much for your response - much appreciated.