Invest €5k for 1 year: what would you do?

ucd_guy

May be getting a lump sum of €5k and planning to invest it for one year - buying a car next year when I turn 25 and my insurance drops a bit!

So I'm wondering, out of all the savings and investment options out there, if you (hypothetically) got €5k to put away for a year, what would you do with it? Credit Union? Invest in some shares? Savings Account?

hmmm

I'd put it in the highest paying bank account I could e.g. Rabo/Northern Rock. For those investment types where you could lose money (e.g. shares) or where there is significant fees, 1 year is usually too short a period to be thinking of.

Barn Owl

Well mr ucd...I am in a similar situation, and as i like to check things out thoroughly, I have recently discovered, with a sum of that amount...believe it or not, the best thing to do would be to skip into the post office, or online and invest it in prize bonds! I know it sounds old fashioned and not a bit glamorous like the stock market..but believe me I have explored everything. Those dumbass accounts that you are told you will get so much interest in, really are just waffle. You get a paltry amount of interest and ideally have to leave it there for sometime. Whereas with prizebonds, you only have to leave them untouched for three months and then if you need it, you can take it out. Hey, you might win nothing, but then again, if you got a few 75euro wins, believe me, it would be better than the crumbs of interest from the banks etc. OR if you arent convinced, then go the rabo direct route! Better than a slap in the face with a wet kipper. I DO NOT WORK FOR THEM, I AM JUST AN INTERESTED WISE YOUNG OWL.;)

Thomas_S_Hunterson

Research a bit of Blue Chip, and try find one that pays a healthy dividend.

hmmm

Northern Rock for a year at 4%, will earn you 160 quid in interest after DIRT tax, I wouldn't call it nothing. Put it in a "blue chip" for a year and you might lose part of your 5k if the market goes against you in the short term. Prize bonds are a tax on those who don't understand what inflation is.

Idleater

hmmm wrote:

Northern Rock for a year at 4%, will earn you 160 quid in interest after DIRT tax, ...

Prize bonds are a tax on those who don't understand what inflation is.

As for the first, the other thing to consider about stocks and shares, is not only can the value drop, but you have to pay to buy in and pay to sell out.

Lol at the Prize bond tax
I have had a few Prize Bonds since I was born and have never won anything in 30 years.

I would go Rabo or ND for a guaranteed % rate over the year.

L.

Sonnenblumen

ucd_guy wrote:

May be getting a lump sum of €5k and planning to invest it for one year - buying a car next year when I turn 25 and my insurance drops a bit!

So I'm wondering, out of all the savings and investment options out there, if you (hypothetically) got €5k to put away for a year, what would you do with it? Credit Union? Invest in some shares? Savings Account?

How about buying a chimp and sit back for a whole year watching him enjoying peanuts.:D

Think about all the money you'll have saved!!