Best and Safest place to put savings

kala85

I currently have about 20k saved in a credit union. I want to know where is the safest place I can put this. Am I better off taking it out of the credit union and putting it into the NTMA saving certs or bonds. I would like it to be put away for a year or two and then be able to access it. The most important thing is that the money is in a safe place.

JTMan

Check out this best buy guide.

It is worth considering PTSB Interest First @2.5% for 2 years. You get the interest up front, the rate is the highest going for a 2 year period and you pay DIRT at the 2013 rate and not the higher 2014 rate.

kala85

Are all the banks and financial institutions now reasonably safe places to hold money?

JTMan

kala85 wrote: »

Are all the banks and financial institutions now reasonably safe places to hold money?

I would think 'reasonably safe' is a fair thing to say!

Deposits under 100k, or 200k for a joint account, have greater safety attached to them.

hfallada

If the banks havent failed now, they are not going to fail anytime in the future. Maybe try rabo as its instant access and the rate is ok,

JTMan

hfallada wrote: »

Maybe try rabo as its instant access and the rate is ok,

The OP wants to save for up to 2 years.

Rabo currently pays 2.00% AER variable on amounts up to 20,000 EUR. This rate, in light of ECB moves, and competitor moves, is very likely to decline. The majority of the interest earned will be taxed at 41%-45%.

PTSB pays 2.5% AER fixed for a 2 year period on sums over 10,000 EUR. Also, this will be taxed at 33% as the interest is up-front.

PTSB Interest First will give the OP a much better return for their money than Rabo.

hfallada

Fungus wrote: »

The OP wants to save for up to 2 years.

Rabo currently pays 2.00% AER variable on amounts up to 20,000 EUR. This rate, in light of ECB moves, and competitor moves, is very likely to decline. The majority of the interest earned will be taxed at 41%-45%.

PTSB pays 2.5% AER fixed for a 2 year period on sums over 10,000 EUR. Also, this will be taxed at 33% as the interest is up-front.

PTSB Interest First will give the OP a much better return for their money than Rabo.

But generally with fixed rate saving products, if you take your money out early you lose most of the interest. There is no point in saving anymore. You are better with low risk, decent dividend shares.

JTMan

hfallada wrote: »

But generally with fixed rate saving products, if you take your money out early you lose most of the interest. There is no point in saving anymore. You are better with low risk, decent dividend shares.

My point was simply that the OP, who can put money away for up to 2 years, is better off with PTSB Interest First rather than with RaboDirect On Demand.

Yes, of course with fixed term deposits, you normally either cannot withdraw or suffer a loss of interest if can you withdraw during the term, but the OP can put money away.

Equities are not for everyone. The broader point that investment products should be considered is however valid.

Slattsy

NTMA products for sure. 5 year Cert

JTMan

Slattsy wrote: »

NTMA products for sure. 5 year Cert

The OP wants a 1-2 year product. Not a 5 year product.

The NTMA do not pay good rates for this time horizon.

Slattsy

apologies