# Best place to save or invest €20k??



## familyguy (4 Oct 2012)

I had a sum of 20k approx in a long term fixed rate savings plan with AIB which recently matured. I received my final interest payment and not the bank are desperate for me to come in and put my savings into another plan with them but I know that interest rates have taken a dive.

I'm not at all savvy in terms of investments or finances hence this post.
I see there is a sticky thread on an EBS option which looks inviting.
This is basically rainy day money which I am trying to avoid having to delve into so I could potentially lock it into another say 5 year fixed rate account if the terms were attractive and it offered a decent return interest wise.

I would welcome any fundamental advice on what the best options are.
I don't know enough about stocks or shares to go delving into those markets so its most likely a matter of what is the best financial institution around to save my money with.

I'd appreciate any help you can offer?

Thanks


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## Billo (4 Oct 2012)

Have you read the best buys :

http://www.askaboutmoney.com/showthread.php?t=101813


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## Lightning (4 Oct 2012)

If you are genuinely happy to lock for as long as 5 years, then consider the below product. 



> *State Savings: Savings Certificates 17th issue*
> 
> 5 Years 6 Months 3.53% (A normal deposit account would need to be paying **5.04%* to match this rate because this product is not subject to DIRT at 30%.) ***High Rate***
> Maximum: €120,000
> ...


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## familyguy (4 Oct 2012)

Thanks for the above folks.


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## Michael B (4 Oct 2012)

Hi I am in a similar situation with approx the same amount of money to save. I have it in a low yielding account as I am nervous to ''lock it away'' as things are still so unpredictable. What would be the total if the 20k was put into this for the 5yrs 6 mnths?


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## Lightning (5 Oct 2012)

24,204.39 EUR at the end of the 5 years 6 months term. 

A compound interest calculator is here.


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## Michael B (5 Oct 2012)

Thanks Ciaran. Sounds like a solid option. Would you have any points or info on pros/cons?


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## NewRoss (15 Oct 2012)

Just wodering what the current thoughts are on the Irish government not being able to repay this in 5 odd years time? Thanks.


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## Lightning (15 Oct 2012)

Michael B said:


> Thanks Ciaran. Sounds like a solid option. Would you have any points or info on pros/cons?



Pro: Great return. 

Cons: Long period of time, sovereign risk, no online access.


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## Lightning (15 Oct 2012)

NewRoss said:


> Just wodering what the current thoughts are on the Irish government not being able to repay this in 5 odd years time? Thanks.



Exact same risk as Irish sovereign debt. 5 year bonds have dropped significantly in yield terms in recent months but still have a large spread over German bonds. Risk of default is far from zero.


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