Investing money from sale of house

Q

qwerty69

Guest
Hi,

I sold my home at the end of last year with the intention of buying - I even had a deposit down to buy a new house. After selling my own house I then saw the way that the housing market was going and I decided not to buy the other house and I got my deposit back. Phew! How lucky was that?

I made a substantial amount of money, for me anyway, from selling the house and I had it on deposit with a couple of banks. However because of the collapse in the housing market I am now starting to hear that some of the banks are coming under a lot of pressure.

Does anybody have any suggestions as to where the safest place is to invest some money. I don't mind if it has a low rate of return.

Thanks for any advise
 
Give it to the banks.
For every 1 euro you give the banks, they can loan 10, so think of it as charity.
With everyone pulling there money, the banks are hurting, and thus can't lend.

World markets to unstable at present to invest in anything really, but things should stabilize soon.

You're money will be safe with the banks - it is guaranteed to some degree, and the gov won't let a bank crash
 
There have been several posts answering this sort of question in the savings forum. Heres the gist of some of the excellent advice out there:

Northern Rock is the safest bank to have money in and also has some of the best rates. Money deposited there is 100% backed by Bank of England.

Rabodirect and National Irish Bank are both backed by Dutch and Danish rules which, particularly in the case of NIB are more generous in the event of a collapse (50k is safe, versus 90% of 20k for an Irish bank).

In addition Rabo is very strongly rated in credit ratings terms. The Post office also comes with certain state backing (however interest may be poor).

Below these in terms of security are Ulster and AIB... below that BOI, Anglo and Permanent TSB. Of course this is just guesswork to a certain extent. Nobody knows which (if any) bank is likely to go bust.

So I think your best bet is to spread your money between some of the 5% deposit accounts, say split between NR, Rabo, NIB, and AIB (or something similar).

Obviously you can invest the money instead; but in the current climate this may be risky and you should seek professional advice if you wish to invest in equities. Personally this money amounts to the bulk of your net worth, so I'd suggest putting the bulk into 'safe' products (i.e. deposit accounts) and a lesser proportion into some form of investment. The proportions will depend on your appetite for risk. Whatever your appetite, may I suggest you diversfy as much as reasonably possible!

So say you've 250k... heres what I would do:

150k in 5%ish deposits with AIB, Rabo, NR, NIB etc.
50k in some form of term investment product (3-5yr) with some capital security
50k into a handful of shares, minimum of 6-8 companies, none from the same sectors.

Like I said, thats just what i'd do, please seek independent professional advice if you do intend to do anything other than deposit accounts! And bear in mind that you may suddenly want access to cash to buy a house! Good luck!
 
As ever - see the Financial Best Buys forum and www.itsyourmoney.ie lists of the best deposit accounts/rates on offer and the many, many, many existing threads on these and how to mix and match them to maximise deposit interest. Also read the AAM and www.itsyourmoney.ie guides to savings & investments to get an idea of what other issues to consider when doing a personal financial review/plan with a view towards short, medium and long term savings/investments of different types (i.e. not just deposits).
 
I am in a similar situation. My advice is to stick it all in Northern Rock. You can squirrel away a few grand in a First Active account and AIB`s online 7 day account and Halifax`s Flexisaver account at slightly more interest( .25% ish) but NR offers 5% and all 100% guaranteed which is what you probably should be more interested in at present.
 
As I said there are innumerable threads at this stage which explain different options on mixing and matching high rate lump sum demand/term and regular saver accounts to maximise deposit interest.
 
Hi qwerty69,

Congrats on your good timing re the housing market. CGorman failed to mention the postbank premium saver product. We offer a tiered interest rate, the higher your balance the greater your rate. Also this is on demand so you can get at it whenever you like (€3k cash limit per day in the postoffice but can arrange an eft/cheque for you for a larger amount). As we have no loan book yet we have less exposure than some of the other banks. Anyway our latest rates on this product are as follows:

€250,000 -€1,000,000 5.00%
€100,000 -€250,000 4.70%
€50,000-100,000 4.70%
€25,000.00 - €50,000 4.55%
€10,000 - €25,000 4.50%
€0 - €10,000 1.00%


We'd love to have your business (it's proving very popular) Yes i do work at Postbank.

Cheers,
Col
 
No disrespect meant Collie but the OP was asking where the safest place was to put their money. I think your Postbank deposit protection scheme is only 90% up to a max of 20K! Northern Rock is all guaranteed.
I am open to correction though.
 
"World markets to unstable at present to invest in anything really, but things should stabilize soon."

we are not anywhere close to markets stabilizing
 
Collie10 said:
CGorman failed to mention the postbank premium saver product.
Click to expand...

Hi Col, I never said I was listing all the high rate accounts, I merely said there are many on offer and the OP should shop around/check best buys. I did indeed mention the Post Office/Postbank option... however I maintain that Northern Rock (among others) beats it hands down on interest rates and security.

However it's great to see another bank/institute represented on the boards - fair play!
 
You must log in or register to reply here.
Menu
Log in
Register