# best place to move 10,000 from credit union



## Genius (7 Sep 2007)

hi all,

Have 10,000 in credit union account last couple of years earning lowish interest around 2-3%.
I do not need this money and was wondering of any suggestions best place to put it short or long term.

Some details....
age 30
hold rabo account - full 10,000 amount in it
hold northern rock acccount - full 10,000 amount in it
1 aib accounts regular saver - 300 monthly 7.00% rate
1 aib on line account - 1000 monthly 4.50%
1 b.o.i account - 1000 monthly 6.75% rate
1 aib equities ssia full amount up last xmas just carried on with full amount each month. 

all of above learned from this site thank you very much 
i have a small company pension nothing much.
not in avc`s.... the whole pension avc thing still confused.

So 10,000 to play with lot of bases already covered.
What to do next???
Seems a shame just to leave it there even tho if anyone reading this is from the credit union please don`t be offended as you very generous people did see it in your hearts to send me to two world cups 
ole ole ole for the C.U.
Thanks in advance for any suggestions.


----------



## Sunny (7 Sep 2007)

Sounds like you are well covered apart from your pension. If you don't understand the whole process, get some independent advice


----------



## GeneralZod (7 Sep 2007)

Have you bought a home yet? If not I'd keep the 10k accessible rather than putting it into a pension AVC. Also 10k isn't a limit for Northern Rock, in case that wasn't just a typing error, you could just put it in there at 4.5% less DIRT (on-line a/c) until you decide what to do with it.

If you really don't need it then pension AVCs will have tax rebates of up to 47%. Markets have fallen a bit recently, they might fall further before going up again. If you've got a mortgage you could reduce the term and total interest to be repaid by making a lump sum repayment.


----------



## ronaldo (7 Sep 2007)

You say in a previous post that you earn €500 net per week which I put at about €30,000 p/a gross. This means that you are in the lower tax-bracket and are not making a 'huge' mistake by not contributing more to your pension whilst you are saving for a house deposit. If you consistently do enough overtime to put you in the higher bracket, you should definetely consider AVC's.

Is your company contributing anything to your pension. The two primary rules of pensions are:

Always contirbute enough to take advantage of your companies contributions. Not doing this is like turning down a payrise.
Always contribute as much as you can afford (up to the maximum allowed for your age) whilst you are paying tax at the higher rate.
Also, you mention that you want to buy a home in the next 2-3 years. Therefore, you should invest in a high-interest account where your money is secure as opposed to in the stockmarket or anywhere else.

Perhaps it's a mistype but, from reading your post below, it looks like you think that €10,000 is the maximum you should keep in a Northern Rock account. This isn't the case and you can keep as much as you want there at the same rate. Therefore, Northern Rock is probably the best place for your credit union money. 

As you appear to be saving €2,300 per month, I assume that you are feeding the savings accounts primarily from your Northern Rock account. The €10,000 from your Credit Union, when lodged in Northern Rock can help finance the savings account a bit longer.

As I can see it, at the moment, your primary goal is to save as big a deposit for your house purchase in 2-3 years as you can.

With regards to the AIB equities SSIA that you are now continuing, what are the charges on this product? If the charges are more than 1% per year on fund value, is there any particular reason why you chose to save with AIB as opposed to a cheaper supplier?

In general, it is a bad idea to invest in equities when you have plans for the money in less than 5 years time. However, depending on where your invested (Ireland, UK, USA, etc.) markets have dropped recently and, depending on your appetite for risk, it may be worthwhile continuing to average in until the markets recover.


Edit: Sorry, my posts crossed with alot of GeneralZod's reply - it takes me ages to post a reply cause I'm dealing with emails at the same time.


----------



## Sunny (7 Sep 2007)

ronaldo said:


> You say in a previous post that you earn €500 net per week which I put at about €30,000 p/a gross.


 
If the OP earns €500 a week, how is he saving €2300 a month in regular saving accounts plus the other €253 that he continuing to pay into his old SSIA equity account while maintaining full balance in Rabo and Northern Rock (or thought it was the max balance)


----------



## ronaldo (7 Sep 2007)

Sunny said:


> If the OP earns €500 a week, how is he saving €2300 a month in regular saving accounts plus the other €253 that he continuing to pay into his old SSIA equity account while maintaining full balance in Rabo and Northern Rock (or thought it was the max balance)


 
I'm not sure but I'm assuming the majority of it's from savings and not from his salary.


----------



## Genius (3 Oct 2007)

Sorry for delay in getting back writing was away Rugby world cup 

My Company pension is poor...... company pays 10euro we pay 7euro it`s crap.
Looking into avc`s this week or next.
Question should i go with company avc or can you organise your own?
What would be advantages?disadvantages of both?

As for payin into regular savings accounts yes this comes from rabo account not wages?

Ronaldo good stuff on your BLOG keep it up well done.
Good head on your shoulders.

Thanks all for replies.


----------



## Genius (3 Oct 2007)

*AIB Regular saver account* 
Min 20 max 300 a month

If you look below my first year of this account interest it looks quite poor interest is paid twice a year april/oct.
As the balance is less in account at april than in oct is this a *sneaky catch* by AIB.


*Date     **Description      **Debit   **Credit  **Balance*
00-02-07 REGULAR SAVINGS    300.00     300.00 
00-03-07 REGULAR SAVINGS    300.00     600.00  
00-04-07 INTEREST ALLOWED    3.43      603.43 
00-04-07 REGULAR SAVINGS    300.00     903.43 
00-05-07 REGULAR SAVINGS    300.00     1,203.43
00-06-07 REGULAR SAVINGS    300.00     1,503.43 
00-07-07 REGULAR SAVINGS    300.00     1,803.43 
00-08-07 REGULAR SAVINGS    300.00     2,103.43 
00-09-07 REGULAR SAVINGS    300.00     2,403.43
00-10-07 INTEREST ALLOWED   44.38     2,447.81


----------



## ClubMan (3 Oct 2007)

Genius said:


> As the balance is less in account at april than in oct is this a *sneaky catch* by AIB.


Eh? They pay 7.1% gross _CAR _and this is on amounts drip fed into the account (i.e. only funds 12 months in the account actually earn 7.1%). I don't see anything sneaky about this. Basically 7.1% on 12 monthly installments of €300 is not the same as 7.1% on €3,600 since not all of the money is on deposit for a full year. See this calculator for working out the effective interest earned on amounts drip fed into an account.


----------



## Darando (3 Oct 2007)

ClubMan said:


> See this calculator for working out the effective interest earned on amounts drip fed into an account.


 
which one? Its in some strange language!!!!


----------



## ClubMan (3 Oct 2007)

Darando said:


> which one? Its in some strange language!!!!


The one that I linked to. Unfortunately  displaying odd (e.g. _Greek _or _Cyrillic_) characters instead of in _English _and I don't know why.


----------



## maddad (3 Oct 2007)

Hi,

what about First Active esavings account----5.22%?


----------



## Genius (3 Oct 2007)

Sorry about that clubman my mistake just wary when it comes to the banks & my own naviety when it comes to all things financial.

Simple question 300 a month will i earn more interest in this type of account over the rabo account.Nevermind the 5% interest on first 10,000
(that`s already in there) wondering should i be saving into rabo or drip feed the 300 into above AIB acount which i`m currently doing?

Looks like from what your saying i will be earning full interest now on savings there for 12months.

p.s. got same thing on link to calculater. in Arabic i think now i`m really confused


----------



## ClubMan (3 Oct 2007)

€300 at 7.1% is obviously going to earn more than €300 at 5% odd! Lodging the lump sum to the highest yielding lump sum account and then drip feeding to the most suitable (e.g. least restrictions, best rate guarantee - probably _EBS_?) highest yielding regular saver account(s) will obviously maximise your overall deposit interest returns. This has been dealt with ad nauseum in many existing threads on the whole lump sum plus regular saver account strategy threads.


----------



## Genius (3 Oct 2007)

Cheers Clubman,
Enough said.
Thanks.


----------



## oldtimer (4 Oct 2007)

Just to give a practical example of interest earned on a regular saver account, last October i started a regular saver with Anglo irish bank - €1000 per month for 12 months. I received interest after DIRT €340.94.


----------



## ClubMan (4 Oct 2007)

The calculator that I linked to above will show you what you will earn on regular saver accounts. If you play about with the browser text encoding settings or try different browsers as I mentioned in the original thread then you should be able to get it to display in _English_.


----------



## Persius (4 Oct 2007)

The reason that interest calculator page is displaying as Greek is cause you are using the "symbol" font for part of the page

View the source and you will find <FONT face=Symbol> just where the page turns to greek. See http://www.alanwood.net/demos/symbol.html to see why this is the case.

"The more standards-compliant browsers, such as Firefox, Netscape 6+, Opera 6+ and SeaMonkey (formerly Mozilla), do not support non-Unicode fonts such as Symbol, and correctly display the normal Unicode characters instead. For example, they display D instead of Δ for decimal code point 68."

Hope this helps


----------



## Genius (6 Oct 2007)

Going back to first thread.
Company pension poor company pay 7euro weekly we pay 5euro.
Was thinking of putting 20% of salary into pension.
Questions.
Should i use company pension AVC`s
Set up seperate pension.
Who to talk to to get best advice.
Unfortunatly my company doesnt seem interested in giving any advice.no-one to talk to face to face.Dublin based.


----------



## Genius (6 Oct 2007)

As in first thread.
all of above learned from this site thank you very much 
i have a small company pension nothing much.
not in avc`s.... the whole pension avc thing still confused.

So 10,000 to play with lot of bases already covered.
What to do next???

Company pension we pay 7euro company 5 euro weekly.
Want to put 20% of salary into pension.Only paying high tax on about 4000 euro of salary thru overtime.
Questions.
should i do it by way of AVC`s or pension.
Should i do it with my company or set my own outside of company.
31st oct deadline to recieve taxback last year.Any ideas.
Was going to stop SSIA money use this to fund pension.
Have 30 to 40k in high interest accounts and drip feeding e.t.c 
Would it be better to use some of this money each year as once off AVC or to put into pension.
ANY IDEAS PLEASE ADVICE NEEDED.
wOULD LIKE TO PUT THIS PENSION THING TO BED ONCE & FOR ALL.
THANK YOU.


----------

