best yearly return on €100K

Looking for advice on the best deposit account rates over 1 year, for €100K.

Basically want a yearly return on this money so as to make annual payments off mortgage from the interest generated, while keeping the €100K intact.

Any advice on how to do this appreciated, i.e. how to set this up in the best way possible in order to make yearly payments of the mortgage. (No other aim except that).

Afraid I'm not well up on these things at all....

Thanks,

PCOCP.

The best 1 year term deposit rate is 3.5% with Anglo or 3.5% with INBS. Nationwide UK pay 3.4% for a 1 year term deposit.

Simply, once the year has expired, wire the interest to your mortgage account and wire the principal into a brand new 1 year term deposit. Check the best rates at the time.

There is a bit of work involved but only once a year.

Over the course of 12 months, is the yearly return deposit account a better option than say the 3 or 5 month options currently available?

If I put €100K into the 3 month or 5 month options currently available from EBS, and after the 3 or 5 months re-deposit the original lump sum again in the same way, wont I get a better return over 12 months?

Or after 3 or 5 months are you precluded from re-depositing the money after getting the return? i.e. is it a once off situation??

Confused non financial person.....

If you go for the 3 month term deposit, then you will need to open a new account in 3 months time. The new account might be at a different rate.

If you just want the highest rate and you are happy to lock for a year then you will not go far wrong with a 3.5% one year term deposit.

OK, thanks for that,

Any chance you could do the numbers for me on €100K at 3.6% over 5 months??

Just want an explanation of how its calculated and what the DIRT liability is.

Sorry, but I dont know the difference between APR/AER etc.....

Appreciated.

100,000 * 0.0364 * (5/12) * 0.75 = 1,137.50 eur.

Thanks for the formula. Appreciated.