# An Post Childcare plus instalments savings - the best option?



## Mily (19 Apr 2010)

Hi there,
I am looking for somewhere to save monthly child benefit payments over a long period of time. However, we would like the option to withdraw in an emergency.

It seems to me that the An Post Childcare plus instalments savings offering an AER of 3.37% and no tax is the best rate about. Am I missing something? I don't see this product recommended or considered by others on this site. Is it the effective term of 6 years that puts people off? Is it considered that if interest rates are due to go up this is not the best place for money?

Any view would be appreciated.

Many thanks
Mily


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## doubledeb (19 Apr 2010)

I'm thinking your baby is quite young and you have no other children?


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## Mily (21 Apr 2010)

Yes, it is our first baby that is four months old


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## Guns N Roses (11 Jan 2013)

I am also interested in saving monthly Children's Benefit payments over a long time and have also looked at the 6 Year Childcare Plus deposit account from State Saviings.

Can anyone offer any advice on this financial product?


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## Lightning (12 Jan 2013)

Guns N Roses said:


> I am also interested in saving monthly Children's Benefit payments over a long time and have also looked at the 6 Year Childcare Plus deposit account from State Saviings.
> 
> Can anyone offer any advice on this financial product?



Some thoughts ...

This is a very unique deposit product that is a mixture of been a regular saver product and a term deposit product. It would only suit those that can save for the next year, then want to stop saving into the account and leave the money for 5 years. 

6 years is a long period of time. The interest penalties are significant on this account. Hence, you are best only considering this if you are pretty sure that you will not need the money for the next 6 years. 

You take on upward interest rate risk by fixing at such a low rate for 6 years.  Conversely, the low rate is one of the better rates currently available for that time horizon.


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## Guns N Roses (12 Jan 2013)

CiaranT said:


> Some thoughts ...
> 
> This is a very unique deposit product that is a mixture of been a regular saver product and a term deposit product. It would only suit those that can save for the next year, then want to stop saving into the account and leave the money for 5 years.
> 
> ...


 
Thanks for the reply CiaranT.

My wife and I would be in secure employment and would be confident that we wouldn't need the money.

Our aim is to save most or all of our Child's Benefit Payments to create a fund that could be drawn down for college. Therefore we would be happy to lock it away for the long term. We would like to get the maximum return we can with minimum risk. This saving product stands out as it is Tax Free.

Can you or anyone else recommend any other long term saving product you would recommend to achieve our goal.


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