# Low risk deposit 200k



## Ryan (18 Mar 2022)

My grandparents in their mid 80s have downsized and have approx €200,000 left over. Inheritance tax won’t be an issue but looking for ideas on low risk short to medium term options given their age.

i think splitting it is probably best but rates are so terrible these days it’s hard to know where that’s not risky and easily accessible.
My idea is to split into 2 an post accounts?


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## jpd (18 Mar 2022)

Sounds very sensible but they will be losing monel in real terms, of course with inflation at 5+% and interest at 0.05%


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## NoRegretsCoyote (18 Mar 2022)

Are they on means-tested pensions?

Big cash savings can hugely interfere bwith entitlements.


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## moneymakeover (18 Mar 2022)

I think.. Over 65 dirt exempt

At .05% interest rate on savings account they will earn €100 per year


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## Ryan (18 Mar 2022)

No means tested pension, they have contributory pension and a very small private pension. Only thing would be Medical Card


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## Ryan (18 Mar 2022)

jpd said:


> Sounds very sensible but they will be losing monel in real terms, of course with inflation at 5+% and interest at 0.05%


What about putting half it in something like a 4 year national solidarity bond or savings certs? Then keep some more open an easy access deposit, mindful they don’t do online banking or anything. They don’t have a big income so I think it would be good for them to have access to cash enabling them to do things they wouldnt afford ordinarily


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## ClubMan (20 May 2022)

Are they living at home?
Might they need to move to a nursing home at some stage?
Or for medical issues?
If they are not likely going to need the money for that sort of stuff then maybe they should start blowing it treating themselves and/or close to them?


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## Steven Barrett (20 May 2022)

Had a similar case just the other day. Advised the daughter to use State Savings plans. Interest rates are low but they can access the money at any time without penalty. Your grandparents don't need investment risk at their age. Yes, there is inflation risk with leaving the money on deposit but they won't be worrying about their money falling by more than that. 

On another point, most life companies have an age limit for new business. They don't want to be on Prime Time because an 85 year old was told to put money into an equity fund that has fallen by -40% and there are 5 years early exit penalties for taking their money out early. 


Steven
www.bluewaterfp.ie


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