# where to save ?



## toasties_ (9 Apr 2019)

hi I recently got giving an inheritance from an aunt I never met 20K there was a group part of it I was to meet an advisor but he has cancelled a few times now I just want to put half away now an let it grow I don't understand all about interest rates an stuff im 32 never had this much money before any advise really appreciate it?


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## David1234 (9 Apr 2019)

Unfortunately it's not going to be growing too much on deposit given the tiny rates at the moment.

Do you have any debt or plans for large expenditure in the short to medium term?


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## toasties_ (9 Apr 2019)

I do want to upgrade my car need few things in my flat done ect also I have a 2 year old so book a few trips ect next year all that keeps coming up to be best is state savings when I try compare suppose putting half away will still be good idea anyway ?


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## PaddyBloggit (9 Apr 2019)

Credit Union. It's accessible and would be good to have a healthy balance there if you ever needed a CU loan towards a car upgrade.

€20k is a nice sum ... don't fritter it away. It's a nice fall back if you are ever stuck.


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## so-crates (9 Apr 2019)

Having an accessible fund somewhere is a good thing. It may be something you need in the future and it is certainly something that provides comfort. If you don't have an existing savings account it might be a good thing to consider using some of the money for. Having a couple of months income saved would make a good rainy day fund.

First thing to do is to sit down and write out a list of the things you need and put a cost on that (e.g. the few things on your flat). Then a list of the things you would like and a cost on that (e.g. the car and the trips). That will give you an idea of what you want to spend out of your inheritance and what money will remain to put into savings.

Best of luck with it and don't feel like you have to sit on all of it or most of it. It is an inheritance for you, you should use some of it for what you would like to do/achieve.


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## toasties_ (10 Apr 2019)

thanks that helps just some my close family telling me to put good bit away to let grow but I have noticed there not much  interest on that type of things these days il look into  maybe leaving most of it in the credit union thanks


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## so-crates (10 Apr 2019)

Unfortunately, interest rates are at an historic low so "letting it grow" isn't a realistic option. Basically you will get next to nothing in interest and then the government will tax it (except for the State Savings of course - which makes it by far the best buy). Any "growth" is limited to start with, taxed to the hilt and wiped out by inflation to finish with. 
So if you put €10000 into State Savings (to get the best rate), after 5 years you would have the princely sum of €10,500. €500 is not to be sneezed at but would you realistically want to tie up that €10000 for 5 years?

if you wanted to have money you could access quickly, you would find the rates are even worse.

Higher returns are really only accessible with more speculative investments and those are much riskier and far from guaranteed.

So while it would be prudent not to splurge your windfall, don't bank on letting it grow either. Hold some for a rainy day and put some to work for things that you need first and want second. The person who willed you the money trusted you to choose what is best for you, trust yourself too.


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## toasties_ (11 Apr 2019)

thanks I think state for 5 years might be best option for me as I can still keep aside some of the other half for rainy day also have a clearer head now thanks


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## Zenith63 (11 Apr 2019)

If you think there's a possibility you would leave the money in for 10 years (say you're building up other savings anyway), then the 10 Year Solidarity Bond offers 50% more interest than the 5 year.  Granted it's 50% of a small number, but still a noticeable difference.  You can always take the money out early (you'll take a haircut on the interest rate for doing so), so try not to think too much of the money being "locked in".


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## EmmDee (11 Apr 2019)

Someone asked the question in the first post or two but it might have been forgotten about - if you have any outstanding loans - especially credit card or overdraft or anything similar - paying those off will "make" you a lot more money than a deposit or state savings. You can pay 15-20% on unpaid credit card amounts so you actually make a lot more money clearing those.

After that - credit union is great if you think you'll need them at some point in the future. And returns are so low even with state savings that you're not losing much by having some with the credit union. I'd also say that if you can use some of it as the start of a savings "habit" that might actually be the biggest benefit.

You could mix all of the above - use half for the things you need (or want) short term, put €2.5k in state savings, €2.5k in credit union and maybe decide to put something small into the credit union every week - even €5. Then every year maybe put that saving into the state savings - gives you a history in the credit union and slowly builds up some savings for when you need it

Anyway - best of luck with it. As someone said above, get some benefit from it now


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## Lightning (14 Apr 2019)

toasties_ said:


> hi I recently got giving an inheritance from an aunt I never met 20K there was a group part of it I was to meet an advisor but he has cancelled a few times now I just want to put half away now an let it grow I don't understand all about interest rates an stuff im 32 never had this much money before any advise really appreciate it?



Suggest: 
(1) 10k lump sum @1.85% AER in a KBC Extra Regular Saver account. You must also open a KBC Extra Current Account but no fees provided you deposit at least 2.5k into the account per month which can be a wire in and out. 
(2) Drip feed the remaining 10k at 1k per month into your KBC Extra Regular Saver account.


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