Looking to invest tax money until end of year

M

Moneytalks2

Guest
I'm self employed and pay my tax in October. I put away money every money into a BoI reserve deposit a/c to cover this lump sum in October. I would like to put the money into fund or some some sort of a/c that will provide me with better returns that I am currently getting with BoI. The a/c needs to be flexible in that I can withdraw a lumpsum in October to pay for my tax. I am currently putting away approx. 3k every month.
Any suggestions where to put my money - I don' want anything too volatile as can't risk losing my tax money.
Thanks
 
The safest house is Post Office Prize Bonds - used to be a popular one with the single - self-employed as any winnings were tax free, and you could cash them in any time. But I think in today's world of higher interest rates, you should be able to get at least 4.5%-5.5% for your savings. For no catches instant withdrawals and non-regular saving amounts, NIB regular saver acc or Rabo direct give best rates for your amount (3*12 = 36k)
 
NR is actually 4.3% at the moment. All rates quoted here are gross CARs so deduct 20% to reflect the "cost" of DIRT.
 
Would Moneytalks2 not need to open a monthly interest account, as the money will be on deposit for fewer than 12 months? Or have I got my NR account set up wrong!!
 
No - if you choose annual interest with NR for example but withdraw before a full 12 months is up then you get the accrued interest credited. It makes sense to choose annual interest payment to avail of the higher rate (0.25% higher I think?) even if you will not deposit money for a full 12 months and if you don't need the interest paid monthly (e.g. as a supplementary income stream).
 
ClubMan said:
No - if you choose annual interest with NR for example but withdraw before a full 12 months is up then you get the accrued interest credited. It makes sense to choose annual interest payment to avail of the higher rate (0.25% higher I think?) even if you will not deposit money for a full 12 months and if you don't need the interest paid monthly (e.g. as a supplementary income stream).
Click to expand...

Bottom - better see if I can change that! Thanks ClubMan.
 
You can change it online by logging into your NR account and going to My Accounts -> Interest Details -> Continue -> Interest Frequency.
 
ClubMan said:
You can change it online by logging into your NR account and going to My Accounts -> Interest Details -> Continue -> Interest Frequency.
Click to expand...

Done - that should earn me, oooh, loads I should imagine.

Thank you again.
 
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