# What to do with savings?



## Michael B (11 Jan 2012)

Hi all. New to the site. I am 30 yrs old have a mortgage of €160,000 on a house now worth €100,000 approx. I have €40,000.00 in savings in a standard account as I didn't want to 'lock my money' in a term account. Have lost a considerable amount in BOI Evergreen last year and nervous since then. I am looking for advice on what to do with savings - pay a lump off mortgage, invest etc etc. Thanks in advance.


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## Renter7 (11 Jan 2012)

What rate are you paying on mortgage at moment? If you were one of lucky ones on good tracker, could be better off not paying down mortgage.

Also, what rate are you getting on savings?


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## Michael B (11 Jan 2012)

Variable rate 3.5% I think. Smaller in savings but that could increase if I put into a term account eg. 3 yr term account but that way money is locked in


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## curious10 (12 Jan 2012)

EBS have a great offer on at the moment, 15 month fixed term at 5.35%.  This is a limited offer and finishes on the 10th February (something like that).  You could put some of your money into that and make some money back.


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## ClubMan (12 Jan 2012)

5.35% is misleading. It's 4.26% _AER_ fixed.

[broken link removed]


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## PolkaDot (12 Jan 2012)

Have you read this thread?
http://www.askaboutmoney.com/showthread.php?t=101819


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## Michael B (12 Jan 2012)

Thanks for the advice. Im very paranoid on putting money into a term account after loosing quite a bit with the Evergreen BOI Fund. Even a 30 day notice account frightens me!! The point being that I feel its best to be able get at it immeadiately if the euro destabilises any further (ie.convert to sterling). Am I over paranoid?


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## Lightning (12 Jan 2012)

ClubMan said:


> 5.35% is misleading. It's 4.26% _AER_ fixed.
> 
> [broken link removed]



You took the words out of my mouth.



Michael B said:


> Thanks for the advice. Im very paranoid on putting money into a term account after loosing quite a bit with the Evergreen BOI Fund. Even a 30 day notice account frightens me!! The point being that I feel its best to be able get at it immeadiately if the euro destabilises any further (ie.convert to sterling). Am I over paranoid?



Loosing money in a fund is very different to loosing money in savings.

There are term deposit options, such as the Nationwide UK term deposits, where the penalty is small, 90 days interest, for early withdrawal. Perhaps, such a product would suit you.


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## Renter7 (12 Jan 2012)

Would agree with  Ciaran  - very different.

Also, I like Natiinwide UK, they are very clear re ability to withdraw from term account and I think reasonable.  Good customer service as well.


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## PolkaDot (13 Jan 2012)

This is a good option for a savings account if you want to ensure you have instant access to it:

[broken link removed]


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## Michael B (13 Jan 2012)

Thanks again. My fear is not investment linked its that by putting money in a term account and the euro crashes im at the mercy of whatever happens next. Where if I (a) put savings off my mortgage its done now and mortgage is reduced or (b) have it in a standard account I can then for example, withdraw it on a Monday if the euro looks like crashing on a Tuesday.


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## zaccolbert (18 Jan 2012)

I was talking with my mate about this the other day, apparently the most secure thing to invest in at them moment is gold, as it won't depreciate in value like property has done over the last few years.


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## 44brendan (18 Jan 2012)

zaccolbert said:


> I was talking with my mate about this the other day, apparently the most secure thing to invest in at them moment is gold, as it won't depreciate in value like property has done over the last few years.


 
Beware of this strategy. Price of Gold has risen sharply over the past 2/3 years. There are many indications that gold is now over priced and could sharply drop in value. Property bubble was caused due to surge in property markets a result of high demand. You need to be aware that gold is a commodity and price can go down as well as up.


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## PolkaDot (19 Jan 2012)

Michael B said:


> or (b) have it in a standard account I can then for example, withdraw it on a Monday if the euro looks like crashing on a Tuesday.



Things will not be that simple if the Euro does crash!


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## grotty (3 Mar 2012)

I found this very educational - makes sense really about diversification - [broken link removed]

I definitely wouldn't put all my money in gold.  But I definitely would have some of it in gold!!  Family Saver with EBS also great. I, like you have been worrying about my finances for sometime - stung with property, what to do with savings etc etc.  Taken a while but finally happy with my exposure now.  I am not in gold to make money btw, just as, in Your Gold Fund's words - 'purchasing power', 'insurance policy' 'diversification'.


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