What to do in the age of %41 DIRT & 0.5% Interest

imitation

Hey guys, I'm looking for a safe savings method for the bulk of my savings that has a decent interest return, I used to use Rabodirect and my banks saving account, but there is little saving to be had now.

I was thinking of the tax free options like savings certs or prize bonds, are there any other good & secure savings accounts like these about ?

Deiseboy01

imitation wrote: »

Hey guys, I'm looking for a safe savings method for the bulk of my savings that has a decent interest return, I used to use Rabodirect and my banks saving account, but there is little saving to be had now.

I was thinking of the tax free options like savings certs or prize bonds, are there any other good & secure savings accounts like these about ?

I am looking for something similar. Am saving for the kids education. Have a decent lump sum away on deposit and adding some of the children's allowance each month. Getting nothing from the banks so would be interested to know what options are out there for long term low risk lump sum savings with the added clause that I'll be adding a little each month.

euroboom13

RISK.... the reason rates are like this is because nobody is taking on risk, if you are willing to risk your nest egg potentially going down you would have, A good chance of getting in on the start of an investment cycle that is setting up to rise all ships.

Money and governments are trying to push savings into riskier investments to encourage growth.

It is a very good time to get rid of the false security of capital, and get into assets.

But RISK is the key.(if you can't break from the security blanket of capitol you are stuck with 0%1% return for now)

Equities and assets have potential to go up or down but it would seem we are at a fairly safe point now.
BUT NO REWARDS WITHOUT RISK.

I understand it is important to preserve wealth but the returns at the moment are an insult, and I do hope someone else has a golden goose for yeah.

imitation

Yeah but Im aiming to keep above inflation rather than try and make 10%. I also dont have an accountant or the scale to make something like shares or property work. I need something short term to keep monthly savings in.

Kristopherus

Of all the current interest rates that have little or no risk, the State Savings Schemes have to be considered the safest option at present.

www.statesavings.ie

euroboom13

I don't think capitol or cash will keep up with inflation even with a reasonable interest rate,i don't think capitol/cash ever keeps up with it.

My money is in equities.Good capitol appreciation /potential dividends.
Fees costly to start ,but e1000 investments holding there own after about 6mths .

If you can wait till you save up to 1k,and then pick a reliable stock,i think you will be quiet happy with your investment in the next 5yrs.
Sometimes risk is undervalued ,The time is now, while our governments keep penalising savings.

i think cash/capitol is high risk now.Zero return and not keeping up with asset prices at all.

But I do see why you feel capitol retention is risk free,i just think capitol/cash is the new risk.
Hope that makes sence

fash

Reduce risk by putting 75% in best savings account you can and 25% in equities etc.

Cute Hoor

imitation wrote: »

Hey guys, I'm looking for a safe savings method for the bulk of my savings that has a decent interest return, I used to use Rabodirect and my banks saving account, but there is little saving to be had now.

There is no safe savings method that will offer a decent interest return right now. The state savings paltry returns are probably the best (in that you won't have to pay tax on interest) available right now. A word of caution on the state savings though, you are signing up for a reasonably significant period of time at a low fixed interest rate, rates can really only go one way from here imo, upwards (BOE are expected to increase rates shortly), and the rate you get now is fixed for the duration of the scheme you sign up for.

No risk, no reward!

Xidu

put 70% in savings and 30% in shares.

do some research and put money in some start up companies.
When the start up companies take off, you will make huge money from it.

An example is Nest, the company google bought at $3.5 billion.

Cute Hoor

Xidu wrote: »

do some research and put money in some start up companies.
When the start up companies take off, you will make huge money from it.

An example is Nest, the company google bought at $3.5 billion.

I'd be a bit dodgy about this Xidu if 'imitation' is looking for a safe haven. True you have the possibility of making huge money if the startup takes off, but there is also the significant risk of losing all if (when) it goes belly-up. Even the venture capitalists get caught in many startups.

RobertKK

Stick it in Google, everyone loves those shares....