Lump sum to invest for period of 1 year

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seánieboy

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hi there i have a lump sum of €30000 and im coming into it in the next 2 weeks. The thing is i need this money in March of 2008 but in the mean time i want to invest it in some high interest account if thats possible i know A.I.B. have a high interest account and i also know that the B.O.I. have a rate also but the thing is i only need to invest it for a year what are the best options open to me including the 2 i mention above all answers would be appreciated
 
Check out the 'Best Financial Buys' Forum for several threads on this.
 
Northern Rock have a fixed one year deposit account at the moment with interest @ 4.25%. It is available for a limited period. From what you say it would best suit you. In a nutshell you will get €340 (DIRT deducted at 20%) into your hand for every €10,000 you invest in it for a year.
 
oldtimer said:
Northern Rock have a fixed one year deposit account at the moment with interest @ 4.25%. It is available for a limited period. From what you say it would best suit you. In a nutshell you will get €340 (DIRT deducted at 20%) into your hand for every €10,000 you invest in it for a year.
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Isn't Northern Rock 4.15% from Jan.
 
Just to clarify the above..

Northern Rock's demand online will pay 4.15% from January and you can get access to the funds on demand. However, they have a 1 year bond open at the moment which guarantees 4.25% fixed for one year only. Access to funds is a little more restricted and it reverts to a different type of account on maturity.
 
Open savings accounts with BOI, Halifax and PTSB so you could save up to 2750 per month (double that if you use open ones for your partner as well) at better rates than deposit accounts and then remove your funds and reduce your contributions to the minimum 30 (60) euro a month.
I would have recommended Anglo but I think they don't don't allow withdrawals. You could keep the remaining money in a demand deposit account like NR and drip feed it into the savings account as needed.
I don't know if the AIB savings account allows withdrawals, if so you could do that as well.
There is another thread about this drip feeding into savings account approach.
 
Janman07 - thanks for clarifying the 4.25% fixed rate re Northern Rock. You saved me the task of going over it again.
Clubman -disappointed with you, thought you were on the ball with everything. You are not reading my threads - I posted the 4.25% on previous thread, see ''will regular saver accounts increase.''
As far as I can see Seanieboy's best option is the 4.25% fixed with NR.
DirtyH20 - You are correct, Anglo do not permit withdrawals. AIB have no restrictions regarding withdrawals but their drawback is their max per month is €300. Cannot understand why you mentioned PTSB. As far as I know they pay only 4.75% on their regular saver and at that you have to give 21 days notice for withdrawal.
Regular saver accounts are now moving up at attractive rates. As of to-day (Wed 13th Dec) the best are as follows -
AIB - 6.60% - max is €300 per month
Bank of Ireland - 6.25% - max €1000 per month
Halifax - 6.20% - max €750 per month
Anglo Irish Bank - 6% - max €1000 per month.

So €3050 per month could be saved, double it to €6100 per month with partner. Not bad for above 6% average - and rising.
 
I'm guessing that you'll be using this money to fund your Budapest apartment purchase, so another option might be to transfer the money to Hungary and avail of local interest rates, which are the highest in Europe. One bank has a 12% introductory offer for the first three months, but around 8% is possible with most banks for money invested over a 12 month period.
 
budapest said:
I'm guessing that you'll be using this money to fund your Budapest apartment purchase, so another option might be to transfer the money to Hungary and avail of local interest rates, which are the highest in Europe. One bank has a 12% introductory offer for the first three months, but around 8% is possible with most banks for money invested over a 12 month period.
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What about the currency risk?
You're not comparing like with like.
 
As he will be transferring the money to Hungary anyway in a year's time, the risk is decreased. Depending on his own personal circumstances, it might make sense to transfer the money sooner rather than later and avail of high deposit interest rates for the time being.
 
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