# €700 To Invest Monthly.



## Lex Foutish (26 Aug 2009)

A friend earns around €700 net per month, outside of her main job, and doesn't need to use it. And she probably won't for a long time. 

What are her best investment (savings etc.) options? She's not one for taking risks so I'd imagine she'd only consider safe options. She's in her early thirties.


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## Lightning (26 Aug 2009)

Your friend is probably best of with the Ulster Bank regular saver product, I would encourage her to keep an eye on the rate. 

See the regular saver best buys here: http://www.askaboutmoney.com/showthread.php?t=20747



> Best rate if you want to save for a few years
> First Active: Regular Saver / Ulster Bank: Regular Saver (Discuss)
> 4.00%
> Regular lodgements required (standing order only): Minimum €1 a month; Maximum €1000. Interest paid on first working day of each quarter. Maximum balance €100,000. Online access to account. Optional ATM card.



On demand best buys that may also be worth considering are here:http://www.askaboutmoney.com/showthread.php?t=102329


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## Lex Foutish (26 Aug 2009)

Thanks, Fungus. I don't think they're covered by the Irish Government's guarantee but are covered by the U.K. Government. Am I right there? Would that guarantee cover deposits in Ireland?


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## sam h (26 Aug 2009)

Does she own a house?  She might want to consider paying the €700 towards that.  I know some people reckon with the low interest rates it's not the most prudent option, but I thiink there is something very satisfying about knock years off your mortgage....plus the rates won't stay low forever.


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## Lex Foutish (26 Aug 2009)

No, Sam. She owns her house (small and fully paid off) and isn't interested in investing in property of any kind, I'd say. But that advice is very good, generally speaking. Thanks.


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## jhegarty (26 Aug 2009)

Is she declaring the extra money for tax purposes ?


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## Lex Foutish (27 Aug 2009)

jhegarty said:


> Is she declaring the extra money for tax purposes ?


 
Yes, the €700 approx is a figure net of tax etc.


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## jhegarty (27 Aug 2009)

Lex Foutish said:


> Yes, the €700 approx is a figure net of tax etc.



Then would pension payments be a tax efficient option ?


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## Lex Foutish (27 Aug 2009)

I think it might be, especially as she has no short term need to access the money, wherever she puts it. Will pass the suggestion on, J, thanks.


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## Rusty Cogs (11 Sep 2009)

fungus said:


> Your friend is probably best of with the Ulster Bank regular saver product, I would encourage her to keep an eye on the rate.
> 
> See the regular saver best buys here: http://www.askaboutmoney.com/showthread.php?t=20747
> 
> ...


 
Can someone clear up on question I have. Anglo's 5% rate is quoted as the best regular saver option on offer but it states that it's ECB + 2% where as other regular savers (AIB) quote ECB + 2.5% but are not listed as better than Anglo. How come Anglo's rate is considered the best ?

In my case, I need 12k in 12 months time and need to saved accordingly.


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## Guest128 (11 Sep 2009)

Anglo's is guaranteed to be at least ECB + 2% at all times. It may be higher, which it its, as its 5% *at the moment*. 

AIB's is guaranteed to be at least ECB + 2.5% at all times. It may be higher, which it is but its as good as Anglo's 5%. Hence Anglos *current* rate is better. If they were both to reduce to the minimum the AIB's would be better.


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## elcato (11 Sep 2009)

Anglos is limited to one year where UB is not so in your case anglo is better. If you were saving for a few years then Anglo forces you to 'empty' out the lump every year.


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## Rusty Cogs (11 Sep 2009)

FLANDERS` said:


> Anglo's is guaranteed to be at least ECB + 2% at all times. It may be higher, which it its, as its 5% *at the moment*.
> 
> AIB's is guaranteed to be at least ECB + 2.5% at all times. It may be higher, which it is but its as good as Anglo's 5%. Hence Anglos *current* rate is better. If they were both to reduce to the minimum the AIB's would be better.


 
Sorry, I don't understand this post at all. How is Anglo + 2% better than AIB +2.5%. Is it that Anglo's rate always floats +2% while AIB just happens to be +2.5% atm ? i.e. AIB's rate is better today but if the ECB rate were to rise, Anglo's rate would exceed AIB's ?


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## mercman (11 Sep 2009)

Just do your friend a favour and do not let them be enticed by fantastic deals on offer by Investment Companies or their agents.There is enough posts on AAM  and otherwise to know that dealing with Irish Financial Providers can be a very time consuming and very risky business.

We are part of the EU and there are plenty of very large product providers that might be able to assist.


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## Lex Foutish (11 Sep 2009)

Thanks, Mercman. She's not really a gambler so she'll be opting for a fairly safe and guaranteed option, I reckon.


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## mercman (11 Sep 2009)

Even with guaranteed products, tell her to read the small print thoroughly. Remember anything that looks to good to be true normally is !


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## Guest128 (11 Sep 2009)

Rusty Cogs said:


> Sorry, I don't understand this post at all. How is Anglo + 2% better than AIB +2.5%. Is it that Anglo's rate always floats +2% while AIB just happens to be +2.5% atm ? i.e. AIB's rate is better today but if the ECB rate were to rise, Anglo's rate would exceed AIB's ?



AIB's rate is not better today! For most regular saver accounts there is a minimum interest rate and a current interest rate. The minimum is the lowest that the rate can go to and its usually linked to ECB, as in Anglo and AIB. However, _usually_ the rates are above this (and dont change that often). 
The Anglo current rate is 5%, which is above the minimum and has been like this for a few months. The current AIB rate is 3.5%, which is just above its specified minimum. So you can see that at the moment the Anglo rate is higher, even though AIB has a high *minimum*.

If the ECB were to rise the *minimum *of both would rise accordingly, although each bank again can raise or lower the rate as long as they are above this. For example, the Anlgo rate about a year ago was 8%. They lowered this back to 5%, which was allowed at its still above the minimum. Similarly, the AIB one was 5% and they lowered it to 3.5%. 

You need to keep an eye on the *current *rate as well as the minimum rate.


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## Rusty Cogs (11 Sep 2009)

Thanks for taking the time to explain that to me.


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