Savings Account for Child?

Sigh!

I’d a similar letter from BoI, a drop from 2.5% to 0.25%. I’ll be moving that but haven’t researched it yet.
I also have two EBS accounts which are just shy of the €5k, so I may have to move those too.

Not sure about EBS but the BOI account stays at rge lower rate once you exceed the limit, even if you bring it under again.

For BOI, 0.25 rate only applies to over €5000. Below €5000, 2.5% rats still applies..

Mousehelp said:

For BOI, 0.25 rate only applies to over €5000. Below €5000, 2.5% rats still applies..

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Until 13th November, whereupon 0.25% applies regardless of balance.

Have accounts for children in both EBS and BOI. Don’t need access gif another 5 years minimum so I think moving them both to saving cert looks like the best option.

Just came on this thread to find alternative to the kids PTSB accounts and I see everyone got a similar letter. PTSB is dropping the rate to 0.01%, with no limit to the saving. So for every 10k saved, you get the princely sum of ONE euro (before DIRT). Might as well put it under the mattress for all it's worth.
I already have my own savings with An Post, I'll open an account for the kids, it looks like it's the only viable option left

Have started to receive letters from NTMA that our child saver accounts are maturing. Children are still under 10. There are lump sums in them that will either sit idle, we have to write to them to reinvest or move them elsewhere.
Considering we won't be touching the funds for at least another 8 years, what is the wisest thing to do now?
Anyone on here in a similar position?

Thanks

irishproduce said:

Have started to receive letters from NTMA that our child saver accounts are maturing. Children are still under 10. There are lump sums in them that will either sit idle, we have to write to them to reinvest or move them elsewhere.
Considering we won't be touching the funds for at least another 8 years, what is the wisest thing to do now?
Anyone on here in a similar position?

Thanks

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An post 5 year bond perhaps

Thanks will look at that

What about looking at a fund, such as Prisma 4, managed by Zurich?

chases0102 said:

What about looking at a fund, such as Prisma 4, managed by Zurich?

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Is that cash based?

irishproduce said:

Thanks will look at that

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Th 5 Year State Savings Cert pays 5% in total, which is 0.98% AER

If your timeline is 8 years, and you are considering the above, you should also consider the 10 Year National Solidary Bond and plan an early encashment. The following are the early encashment rates:



This doubles your money in the last three years (so 10% rather than the 5% you'd get from the Savings Cert) and has a further decent upside should you be in the happy position to leave the money site for the additional year or two.

The success of this strategy is predicated on interest rates remaining very low for the term you are talking about. It also offers capital security. There are plenty of options that have the potential to exceed these returns, but most of these do not have capital security.

An option worth looking at for those saving for a childs future (as opposed to investing a capital sum) is another State Savings option, The Instalment Savings product. Save a fixed amount monthly for 12 months, then leave it for a further 5 years. It currently pays 5.5% (.98% AER) at the end of the term (which is six years in total). There is a rollover option at the end of the 12 months and the monthly amount may be altered at rollover. Early encashment is poor. This is more of a savings product than an investment option.

I was faced with this dilemma last year when considering a christening present for a goddaughter. I thought of investing a few thousand but locking it up for such a long time with the potential for pretty poor returns was off-putting. (I had done for another goddaughter's christening over 25 years ago and she got a world tour out of the proceeds the year she was 21, but that was a very different interest/investment rate environment) I thought of splitting it into three or four piles and buying shares in global brands. In the end I gave it to her parents in cash as her contribution to the decoration and fit out of the new house they were just moving into (with the stipulation that it paid for the fit out of her room etc) as a more practical option. No right answer really !

urfirst or urmoney accounts with Ulster Bank pay 0.95% according to this here:



Of course interest is subject to DIRT unlike State Savings.