1 year Investment advice

lfc33

Hi,

I currently have 110,000 euro split between accounts at Permanent TSB and the Credit Union. It's a deposit for a house but due to circumstances we won't be buying for at least 18 minutes. Anyone any advice on a low- risk investment for the next 12 months?

Bizness

lfc33 wrote: »

Hi,

I currently have 110,000 euro split between accounts at Permanent TSB and the Credit Union. It's a deposit for a house but due to circumstances we won't be buying for at least 18 minutes. Anyone any advice on a low- risk investment for the next 12 months?

Low-risk = cash I guess and whatever bank, credit union or An Post savings offers the highest interest - might be a fixed term account e.g. 12/18 months. Max of the 100k in an account if the institution is regulated by the Irish Central Bank, and as long as the taxpayer stays solvent, then your shekels should be guaranteed to that amount in case of the firm going bust.

If a deposit for a house, and you are a first time buyer, you should get a rebate for the Dirt paid on the interest income once you buy the house, up to a deposit value of 20% of the house.

I quote
"In Budget 2015 a relief from DIRT for first time buyers was announced.

This applies to savings used by first time house buyers towards the deposit on a house. This is to apply to houses bought between 14th Oct 2014 and 31st December 2017.

The refund of DIRT will be for up to 4 years prior to the purchase date – and will apply to the amount of DIRT charged on deposits up to the value of 20% of the purchase price.

So – if a house costs 200,000 Euro – a first time buyer will be able to claim a refund of DIRT paid on the first €40,000 that they have had on deposit up to the date of purchase. The refund will be for up to 4 years of DIRT.
IE – a simplified example : If they had €40,000 it in an account paying 3% interest – for the past 4 years if we say the average DIRT on that would have been 33% . That would mean DIRT of about €1600 over 4 years. Under this refund scheme – that €1600 would be refunded by Revenue."

Link: moneyguideireland.com/dirt-refunds-for-first-time-buyers-budget-2015.html

Brussels Sprout

lfc33 wrote: »

Hi,

I currently have 110,000 euro split between accounts at Permanent TSB and the Credit Union. It's a deposit for a house but due to circumstances we won't be buying for at least 18 minutes. Anyone any advice on a low- risk investment for the next 12 months?

househero

You want free advice from a chat forum on what to do with €110,000

Spend a grand on a psychologist

Hey Hey My My

househero wrote: »

You want free advice from a chat forum on what to do with €110,000

Spend a grand on a psychologist

Well thats not very nice to the OP :P

OP congrats on saving such an amount; realistically the only thing you can do in that short amount of time is to lock it up in a 12/18 month account to gain the most interest. Spread it between banks too to minimize risk

Kristopherus

PTSB Interest First is your best option. Pays 2.37% interest and you get your money within a month of depositing it.

Hey Hey My My

Kristopherus wrote: »

PTSB Interest First is your best option. Pays 2.37% interest and you get your money within a month of depositing it.

Then deposit the interest into another bank to earn more interest

Boardnashea

Kristopherus wrote: »

PTSB Interest First is your best option. Pays 2.37% interest and you get your money within a month of depositing it.

This rate is Gross for 18 months. Gives an AER (Annual Equivalent Rate)of 1.6%. This is in the better end of rates currently available but not the best.
I usually look for rates on http://www.askaboutmoney.com/threads/term-deposits-fixed-lump-sum-savings.101813/