# Which Savings Account for best return on 30,000?



## boomboom4780 (16 Jul 2012)

Hi,

I am in a fortunate position where I can put away 30,000 for around a year or so? I'm just looking for some advice on which savings account I should use to help get the best return?

I have current accounts with AIB & BOI so I would have liked to open a new savings account with either of these out of convenience but their savings rates are decreasing of late. From looking at the best buy threads KBC 14 month fixed account would be my best option though I don't know much about this bank?

Can Ciaran T or anybody else with some good knowledge please advise what they would do in my position?

Thanks for any help, BB


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## Lightning (16 Jul 2012)

You have selected the account with the best return. The KBC 1 year 2 months account pays 4.14%. A great return.

I think now is a good time to lock at this rate. For many reasons, the rate is unlikely to be offered for too much longer.


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## boomboom4780 (16 Jul 2012)

Thanks for the confirmation and advice Ciaran,.,.much appreciated, will proceed to open this account asap

Cheers BB


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## PolkaDot (17 Jul 2012)

You may want to consider the implications of locking your money away for 14 months. There is still a lot of uncertainty around the Eurozone and the Euro currency. The media are quiet on it at the moment but it doesnt mean a lot of the issues have gone away.

It may be prudent to put your money in an account where it is still accessible.


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## Lightning (17 Jul 2012)

PolkaDot said:


> You may want to consider the implications of locking your money away for 14 months. There is still a lot of uncertainty around the Eurozone and the Euro currency. The media are quiet on it at the moment but it doesnt mean a lot of the issues have gone away.
> 
> It may be prudent to put your money in an account where it is still accessible.



You need to consider exit options. 

The KBC term deposit is accessible subject to an early exit penalty.


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## evanio (17 Jul 2012)

*exit options*

I find it mildly amusing when reading about exit options because for most banks the only exit option is by cheque , a draft or electronic transfer.No  bank i know is going to hand 30000 over the counter and even if they did you would need to be very quick to beat the stampede that would form outside the bank.


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## kdoc (18 Jul 2012)

Very true.


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## foggym (20 Jul 2012)

I'm in a similar position to the OP and was looking at the 5.5yr State Savings Certificates.  I'm a little nervous about putting it away for so long - does anyone have any advice on whether they think that's a good idea or not?  Or any alternatives to recommend?


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## Lightning (21 Jul 2012)

foggym said:


> I'm in a similar position to the OP and was looking at the 5.5yr State Savings Certificates.  I'm a little nervous about putting it away for so long - does anyone have any advice on whether they think that's a good idea or not?  Or any alternatives to recommend?



Are you reasonably certain that you will not need access to the money over the next 5 years 6 months? Are you okay with your money being in Irish sovereign debt for the next 5 years 6 months?


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## evanio (21 Jul 2012)

Your money is as safe with the government as it is with any bank and with interest rates falling and likely to fall further it seems like placing your money in these deposits is the sensible thing to do. You also have access to your money before the end of the term although with loss of interest. In the event of the goverment not being in a position to return your money at the end of the investment period it seems unlikely that any bank will be in a position to do any better


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## Lightning (21 Jul 2012)

Absolutely you can pay interest penalties for an early exit, but there is no point in choosing this account if you think it is likely that you will be taking an early exit.


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## evanio (22 Jul 2012)

With most banks you pay an interest penalty for early withdrawal from fixed term deposits although some accounts allow you access to a portion of your money.With state savings the interest is structured to pay low interest in the early years with the higher rates coming in later years or at maturity.But if you are not fairly sure you will let deposit go full term maybe you should be locking in one year at a time,but if the investment goes full term nobody will beat state savings on interest rates.You  pay your money and you take your   choice


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## foggym (23 Jul 2012)

Thanks very much for all the replies.  I'm as confident as I can be (since no one knows the future!) that I can afford to put the money by for that length of time, so long as it's a sensible choice of what to do with it. I just don't want to make the wrong decision so very grateful for the advice


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## foggym (23 Jul 2012)

CiaranT said:


> Are you okay with your money being in Irish sovereign debt for the next 5 years 6 months?


CiaranT, I've been doing some googling since I read your reply this morning as, I have to admit, I wasn't too sure what this meant.  I now understand the question but not how to assess the answer.  I saw on a old thread from 2010 that you were of the opinion back then that state savings were best avoided because of the risk of a default.  What do you think now?  Would I be safer with a bank (e.g. KBC)?  I'd like to make the best interest but not at any risk to my capital.


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