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House Deposit Savings

  • 07-10-2013 9:53pm
    #1
    Woshy
    Registered Users, Registered Users 2 Posts: 1,429 ✭✭✭


    My parents have given us money for a deposit for a house (we are very very lucky). For a good few reasons we do not want to buy a house for another 2 years or so but we will be receiving the money soon and I need to decide what to do with it in the meantime.

    I'm sure this has been asked before but I've had a look through the forum and nothing has jumped out at me.

    Would it be best to put it in a savings account (e.g. the KBC savings account with 3.5% interest) or is there some kind of better option? I'm a bit unsure if we would be able to use the KBC account because it says no lump sum lodgements. I'm not sure if that means you cannot open the account with a lump sum (we would have around €28,000) We plan to continue saving ourselves as well over the next 2 years to add to it as well which makes me think a savings account would be best, as we'd like to add to it. I just want to make sure we are doing the most sensible thing with the money. Any suggestions? I've been looking at deposit accounts but the rate of return seems to be lower than it is with a regular savings account but then we may not be able to to open a savings account with the sum of money we have.


Comments

  • #2
    Sarn
    Registered Users, Registered Users 2 Posts: 3,110 ✭✭✭Sarn


    You can't open a regular savings account with a lump sum. Generally the best instant access/fixed account rate for a lump sum is 2.4 - 2.5% AER.

    If you are risk averse what you could do is put it in an instant access account and drip feed it into a regular saver account with a higher rate of interest. The only issue is that rates keep moving downwards. A fixed term account would avoid that issue.

    This link has some details on the available rates.


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