Best place to save or invest €20k??

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

Have you read the best buys :

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

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

http://www.statesavings.ie/products/Pages/default.aspx (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
• Early withdraw is possible but is subject to interest penalties. Interest is not accrued on a daily basis, it is accrued each six months from date of purchase. You can withdraw at any time during the term but you will loose any non accrued interest.
• Deposit Protection: Unlimited via Irish government sovereign debt guarantee.

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Thanks for the above folks.

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?

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

A compound interest calculator is here.

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

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

Michael B said:

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

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Pro: Great return.

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

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.

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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.