Advice please re State Savings

[bmd1001]

I'm a complete novice but would like some advice. Basically I have about €30000 (life savings!!) to invest. I am looking for the safest place to put it. I believe the Government Bank Guarantee is coming to an end and so I was wondering if there is any more security with either the An Post Savings Bonds, National Solidarity Bonds or Savings Certificates. While i would like to earn some interest, my main concern is security. When I read the bumph you get from An Post it states "When you put money into State Savings you are placing your money directly with the Irish Government. The repayment of all State Savings money is a direct, unconditional obligation of the Government of Ireland". While this seems to give a bit more peace of mind than a bank investment without the government bank guarantee, i then think of the politicians in this country and wonder whether the quote above regarding the security of the State Savings is worth the paper its written on! Any advice ( in simple, laymans terms) would be appreciated.

 

[Sue Ellen]

My motto is best not to put 'all your eggs in one basket' so if it were me I would split it 2 maybe 3 ways as you do say security is the most important aspect of your investment rather than highest rates.

The Savings Certificates or Bonds give a good rate and if you have a look at the AAM Best Buys you should be able to make up your mind on where else you might save something.

Another option to have a read is http://www.nca.ie/nca/compare-savings-investments

 

[dub_nerd]

Personally, I would (and have) chase the best rate available, within reason. Imagine a scenario in which the Irish sovereign defaults. Do you think the domestic banks will be in good shape? You could go with large international banks like Rabo, but the rate will be fairly derisory at present. Even if you pick a less risky institution there are other risks, such as currency risk. Will the euro be around in five years in its current form? And these are systemic risks which cannot easily be avoided even by splitting your deposits.

Although you cannot avoid risk, you should be prudent within reason too. I reckon State Savings strike a reasonable balance and give you the best return. Personally they were my first port of call.

 

[LDFerguson]

I'm a complete novice but would like some advice. Basically I have about €30000 (life savings!!) to invest. I am looking for the safest place to put it. I believe the Government Bank Guarantee is coming to an end...

Just to be clear - the Eligible Liabilities Guarantee (ELG) scheme is coming to and end this month, but the older Deposit Guarantee Scheme is continuing indefinitely. Anyone with a deposit of €100,000 or less in an Irish bank is still covered by the Deposit Guarantee Scheme after March, with no change. The removal of the ELG scheme only affects people with over €100,000 in a single bank covered by this scheme.