# What to do with savings?



## spideog (20 Mar 2010)

Age:29
Salary: 45k
No debts except mortgage of €125k which will be fully paid in 10 years currently at rate of 1.75% tracker and have repayments of €1200 a month - could also up repayments here if I wanted to.
Value of house: 350-400k

Life savings of 35k wondering whether to lump sum it into my mortgage or put it on deposit for a later stage.  Besides these savings I have 7k float in current account.
Advice gratefully appreciated.


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## EMG (20 Mar 2010)

Hi there,
the one thing you didn't mention was if you were with or without a family. That question answered yes would hold a different answer as you have dependants. I wouldn't advise paying off that lump sum off your mortgage, what if you needed the money for something, once you put it into your mortgage you can't get it back. The fact that you can over pay your mortgage would be a better plan. Invest your money in a short term fixed deposit account or something similar. Depending on your age you could involve a little bit of a risk to try make you money but personally i like to play it safe so go with a capital secure fund. You can invest in some bonds which 25% of your investment is made available to you after a year and the 75%after 3, this would mean its not too long to wait. You could also go for a 7 or 30day notice account which offer you your funds back within these time frames. Always read the small print and go with a broker rather than a bank, the broker is independent. Hope this helps. Emma Gollogly.


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## Lightning (21 Mar 2010)

1) Check out the 3 savings best buys  threads here. Make sure you are getting at least 3.30% for your savings or more if you can lock. 

2) Get the 7,000 EUR out of your current account. You are earning close to 0% on this. Move the money into a savings account. 

3) Don't pay any extra money off your mortgage. You are financially better off saving. Best buy savings rates are from 3.30% to 4.00%. You are paying 1.75% on your mortgage. Saving is in your financial interest.


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