Good savings plan/investment for 2012

Nappy

I plan to save 150-200€ a week in 2012. I want to buy a house in a year or 2 so need to sort my down payment and i can worry about mortgage later. Can anyone recommend a good savings plan for this type of saving for 1-2 years. All i care about is ROI, would like to hear any suggestion or alternative. It would be a weekly 150-200€ for 1-2 years. Would be greatful for any advice.

Regards

Nappy

SyntonFenix

http://www.rabodirect.ie/investments/regular-investor/default.aspx

soddy1979

First - figure out how much of a down payment you will need.

Let's say 20K

Second - figure out when you will need it.

Let's say 3 years

Third - Figure out how much you can save.

Let's say 200 pm.

Fourth - do the maths.

You need to earn 60% per year.

Five - conclusion, you need to save more.

Seriously though, you should try to work it out, because if you are set on buying a house, you need the safest form of investment at the required rate to pay your deposit. Figure out how much you need, or at least estimate it. Then you can work out how much return you should aim for and in turn you can choose your investment product.

Nappy

I need 10K, I need it in 2 years, I plan to save €100 a week, which adds to €10,400 after 2 years before any interest. I don't mind taking some risk with about half the savings. I'm looking to have the 10K as fast as possible. The maths adds up, I just want to speed tup with any savings/ investment veheicle.

I looked at the rabo direct savings/investment plan, I may consider this for half the savings. Any other suggestions would be greatly appreciated, I'm a beginner who really wants to put some money down and take risk or two.

Cheers!

okiss

Nappy if you are saving money for a house and you need this money within in the 2 to 3 years I would not save in funds like the rabodirect funds.
The reasons I say this are that the value of these funds can fall and you also have to pay more than dirt tax rate back to the revenue when you cash in these funds. These funds are designed for a longer term savings because of this.
If you look up the nca.ie website and put in your details under the regular savings it shows the current rates that each bank is offering.
After you having saved in one of these accounts for a year I would advise you to look at the interest rates available then for the lump sum you have as the rate can fall on these accounts after a year.
You could also consider an post savings certs the 5 and a half years ones - they pay interest dirt free every 6 months so you can cash them before this time frame with 7 days notice and they can put the money into you bank account. For more info see www.statesavings.ie
He is some information on them
The NTMA's Savings Certificates grow every 6 month as follows
……………………GROSSED UP................ACTUAL NET "After Tax"
……………………RETURN.…AER………….AER......RETURN
Year…..½……..1.37%....2.75%..........2.01%....1.00%
Year 1…………. 2.88%....2.88%..........2.10%....2.10%
Year 1 ½……..4.52%....3.00%...........2.19%....3.30%
Year 2…………..6.30%....3.11%...........2.27%....4.60%
Year 2 ½……..8.49%....3.34%...........2.44%....6.20%
Year 3………..10.96%....3.56%...........2.60%....8.00%
Year 3 ½…...13.70%....3.78%...........2.76%..10.00%
Year 4……..…16.71……...4.00%..........2.92%...12.20%
Year 4 ½…….20.00%....4.21%..........3.07%...14.6%
Year 5…………23.97….....4.49%..........3.28%...17.50%
Year 5 ½…….28.77.......4.84%..........3.53%...21.00%

The “Grossed Up Rates” on the left hand side of the table is there for comparison so that you clearly see the rate that you would need to receive from an alternative deposit product where all the interest earned is subject to DIRT at 27%. (dirt rate is now 30%)

shangri la

Would the 10k be your total deposit?

Banks are currently looking for at least 20% deposit from most applicants which means you can buy a 50k property.

then again, that may buy you a 3 bed semiD in SCD in 3 years.

JTMan

Nappy wrote: »

I plan to save 150-200€ a week in 2012. I want to buy a house in a year or 2 so need to sort my down payment and i can worry about mortgage later. Can anyone recommend a good savings plan for this type of saving for 1-2 years. All i care about is ROI, would like to hear any suggestion or alternative. It would be a weekly 150-200€ for 1-2 years. Would be greatful for any advice.

Regards

Nappy

A detailed guide to all savings plans is here: http://www.askaboutmoney.com/showthread.php?t=90481

It would seem that the EBS 'family saver' regular saver plan may suit you.