# how to earn maximum interest on my money



## Astro_man (9 May 2008)

I would really appreciate some guidance on what would be the wisest way to invest my cash to make as much interest as possible for the next cuple of years.
Im 27.... still living at home.
I have saved pretty hard since ive started working full time.
Throughout this time i have put away as much spare cash as i could into my local credit union...a total of 50K. This gave me 900 interest last year.

I also had 30K invested this with RaboDirect.
*RaboDirect give 4.3% interest on the entire balance*
So this year i said..."lets merge all of it into RaboDirect".
So i now have 80K with RaboDirect.
Already this year, the interest i have gained with 80K in RaboDirect is 966 Euro
(in just 3months!). Thats approximately 60 Euro interest weekly.

This year i also opened up a FA Regular Saver  for up to €1K p.m. at 7.15%

I also have 10K wrapped up in shares...but unfortunately due to lack of experience thats only worth 7,600 Euro at present. Im with Apple, so things are looking up at the moment.
If i can make it back to 10K again or near, im getting the hell out of shares.
But then again, have you seen the share graph for Dragon Oil?
That looks like a good investment???! Anywayyyyyyy!

So in summary, im thinking of buying property perhaps in the next 2/3 years and i want to make my money earn as much interest as possibe until i do.
Does my current system make sense...? Too many eggs in RaboDirect?
Perhaps i could distribute it more clever
Once again, i would really...really appreciate any suggestions on what would be the wisest way to invest my cash.


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## ClubMan (9 May 2008)

To maximise deposit interest returns you will most likely need to open a number of term or demand and regular saver deposit accounts from those listed in the _Financial Best Buys _forum. How to do this is covered in innumerable threads already. You should search/browse for these.


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## iggy (9 May 2008)

Stick it all in Northern Rock...5% and your money is all 100% guaranteed by H.M. government.


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## askU (10 May 2008)

Open Three esavings accounts with First Active. One in your name one in  your partners/parents name and a joint account. Holding up to €15,000 in each at 5.22% APR ( this can be done
See Corkjoe


> to maximise the interest rate on two accounts under €15k (1st one was in joint name with wife)


 http://www.askaboutmoney.com/showthread.php?t=58818&page=16

€15,000 x 3 accounts = 45,000
Rabo:                  = 4.3%
First active esaver = 5.22%
Difference            = 1.12% 
45000 x 0.0112 x 0.8(DIRT)= €403.20 

This alone will earn you an* extra*  €403.20 p.a. on €45,000

You can do the same with halifaxs flexi-saver.(3 accounts) _*5.15%*_  on up to €10,000 (bonus interest for first year only)  €10,000 to €250,000 maximum.  [broken link removed] for this. Interest paid quarterly. But after 12months it is _*4.00%

*_Rabo:                  = 4.3%
First active esaver = 5.15%
Difference            = 0.85% 
30000 x 0.0112 x 0.8(DIRT)= €204 

you an* extra*  €204 with by doing this.

403.20 + 204 = *€607......Total of extra earned!!*


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## Superman (10 May 2008)

You can do better than Rabo at the moment:
Northern Rock give you 5% - for an unlimited amount.  Currently probably the safest bank in the world as it is backed by the British government. (Someone correct me if I'm wrong).
AIB give you 5% up to €10k for their 7 day notice account.
First Active give you 5.22% up to 15k. (note do not allow it to go over 15k).

Once you've parked your money in these, you can start drip feeding it into the regular savings accounts - which have higher interest rates of 7% or so:

Anglo  7% up to €1000 per month.
Halifax 7% up to €350 per month.
AIB Regular Saver Account - 7.3% up to €300 per month. (Must have an AIB account)
Irish Nationwide Regular Saver: 7.35% up to €1000 per month
EBS Regular Saver: 7% - up to €1000 per month.
First Active Regular Saver 7.15% up to €1000 per month.

Note the regular saver accounts do have a minimum investment per month - generally this is small though (€20-€100 depending).  The best optimised savings regime would be to open all of the above regular savings accounts, then "dump" your money from the 5% accounts into the 7% accounts as quickly as possible, then  once all of your savings are earning 7%, drop your regular savings to the 7% accounts to a level where your savings match your earnings.


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## oldtimer (10 May 2008)

Ecellent posts by askU and Superman - its all covered simply. Just a slight correction re regular savers - EBS no longer offer 7%. Could substitute Bank of Ireland easy saver @ 7% per month up to €500. However watch max amount one can save - once it goes over €5,000 rate drops.


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## ft5j60j (11 May 2008)

im in the same boat as Astro_man except I have 185k built up in savings, he is my plan I want max return on my savings. 

My plan is to get a loan for 50k for a flash car and my interest on my savings will pay for the loan!!


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## camlin90 (11 May 2008)

ft5j60j said:


> My plan is to get a loan for 50k for a flash car and my interest on my savings will pay for the loan!!



Would you not be better off to buy the car in cash - unless you can get a lower interest rate on your loan than the net rate on your savings (unlikely) !

Think of it this way - you can either borrow from the bank or "borrow" from your savings - if the bank is charging 7% and you're getting 4% on your savings after tax, it's a no-brainer!

You should also be able to negotiate a cash discount with the garage if you buy the car in cash up front.


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## ft5j60j (12 May 2008)

point taken, any more input to this?


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## ClubMan (13 May 2008)

ft5j60j said:


> point taken, any more input to this?


On what specifically?


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