Lumpsum options?

[Bonnie865]

Long time lurker but first time poster

We've just received a €100k+ [nett of CGT] from the sale of a directorship, we don't have a mortgage, literally no debits. We already have some accounts with PTSB in 21 and 90 day accounts but we're looking at other options for security. We're not looking into long term accounts, but thinking of putting say €45k into Investec in a one year fixed A/c returning 4%

Any suggestions on the balance? as we don't want it tied up and would like easy access to it if need be

Thanks E&C

 

[Brendan Burgess]

Hi Bonnie

This really depends on your investment objectives and investment horizon.

There is no such thing as security any more. In fact, there never has been. If you put all your money on deposit long term, it runs the real risk of being severely devalued by inflation.

If you put it in banks, there is the risk that the banks will go bust. The safest bank is probably Rabobank, because it is inherently safe. Northern Rock is next as it's covered by the British government guarantee.

If you are investing long-term, you should make sure that you are maxing your contributions to your pension funds.

The alternatives to deposits are property and shares. Both are risky. In the long term, the reward should compensate for the risk. We don't allow speculation about Irish property prices on Askaboutmoney, but I think most people would agree that there is risk involved.

A porfolio of shares should give you a good long term return. You probably should invest at least part of your assets in shares.

Brendan

 

[Lightning]

Any suggestions on the balance? as we don't want it tied up and would like easy access to it if need be

If you are looking for an instant access account with a good rate, then the best rate currently for under 100K is Anglo Irish @ 3.60%. See the best buys thread, for more details. All deposits with Anglo are guaranteed by the Irish state.

As indicated above there are options beyond deposits worth considering.