Current account mortgage deposit or investment

K

Kelt

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I have a new current account mortgage with First Active for 175000 euros, rate 3.29%. I have 30000 euros deposited in this account at the moment. I have another 25000 euros right now and the full amount of the SSIA, I guess around 20000 euros to come next summer. I am just wondering, as I don't need that money if it is better for me to deposit all of that money onto the current account mortgage or to invest it, say for example on the new irish EFT. I am not a big gambler when it comes to money by the way, more of a saver.
Thanks
 
You won't get a better rate than 3.29% in the current terrible deposit market. I would definitely put it into the current account. The other possibility, which alot of people might recommend is to put it into a selection of good shares, advised by a qualified broker. Diversifying between property and the stock market is generally speaking, a good idea.
 
As has been pointed out putting the money in the mortgage current account is a good way to get a good (by deposit standards) guaranteed return on your money. To get better returns would generally involve undertaking some level of risk. Investing in the stock market would be one such course of action. Note that deposits and equity investments have significantly different risk/reward profiles (deposits = low, equities = moderate to high) so they are not directly comparable as alternative strategies. There's always the option of using some of the money to offset against the mortgage and some to invest elsewhere. It's difficult to recommend specific strategies or products in the absence of much more detailed information about your overall personal/financial circumstances, existing investments, attitude to risk/volatility, investment timeframe(s) etc. etc. If in doubt get independent, professional advice.
 
Put it off the mortgage, as stated above, at least until you find something better to do with it

Spend plenty of time doing your research and don't rush into anything too hasty

Remember there is no rush to investing
 
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