# Is there a risk free way of returning >5% in 12 months



## Stylus (18 Feb 2010)

Is there any investment to get a risk-free return rate of >5% (100% capital guarantee) on a 12 month timeframe ?

I have an amount >50k available but not interested in managed funds or shares or 2/5 year bonds right now. 

thank you.


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## ringledman (18 Feb 2010)

Unlikely. 

No investment in the world is 'risk free'.

The government or bank may promise to return you all of your cash. They don't promise it will be worth what it originally was. 

I think you would be lucky to get 2-3% over a 12 month period from any cash/bond account.


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## Senorito (24 Feb 2010)

Northern Rock 2.5% demand account is as close as you will get. The bank is being prepared to be sold on and the UK goverment is removing its blanket guarantee. That said, I still think they are guaranteeing up to £50k. Would check it out further if you plan to open an account. Dont take my word on the figures.

Other than that, you haven't a hope of finding a *risk free* return of 5%. If you do, will you let me know so I can use it myself.

Dave


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## falabo (16 Aug 2010)

*returning 4.5% per year*

yes there is a way to return close to 5%. I am getting 4.5% but that's abroad (in Euros)...   no DIRT or any such crap.


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## mercman (16 Aug 2010)

falabo said:


> I am getting 4.5% but that's abroad (in Euros)...   no DIRT or any such crap.



Maybe but what is the risk factor ?? And if you don't want to pay Tax that is fine but the longer you leave the more it will cost you in Interest and Penalties.


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## Horatio (17 Aug 2010)

mercman said:


> Maybe but what is the risk factor ?? And if you don't want to pay Tax that is fine but the longer you leave the more it will cost you in Interest and Penalties.


 
Isn't it possible he is not liable for any such tax & therefore related interest & penalties?


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## Rory Gillen (23 Aug 2010)

I am fairly sure that there are several of the bank debt instruments covered by the 'Eligible Liability Guarantee' (ELG scheme) that yield somewhere between 4.0-4.5% on a 12-18 month view. THE ELG scheme provides a full state guarantee. However, there is a minimun size for dealing, it could be €50k - you should have a chat with a Dublin-based broker who deals in these debt instruments if you have one.


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