Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Where to put medium term savings?

  • 08-01-2017 11:28pm
    #1
    benjamin d
    Registered Users, Registered Users 2 Posts: 921 ✭✭✭


    On advice from the accommodation and property forum I'm posting this here.

    I'm currently at least 4-5 years off buying a house and want to know if there's anything in that time frame I can do with my savings rather than sitting doing essentially nothing in a deposit account?
    I have a deposit account with KBC at 0.6%, and a regular saver with Nationwide UK at 2%. These are the best available AFAIK. I also have a small amount in linked finance but that's neither here nor there.
    I'm hoping to save 10k per year for the next few years but it seems a waste to have it sit there doing nothing for me.
    I know options are limited but if anyone has an idea I'm all ears.


Comments

  • #2
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,377 CMod ✭✭✭✭Nody


    Well 5 years would be on the lower end for stocks but at a significant risk which would no really be suitable to what you're saving for; hence I'd look at short term interest/bonds funds or 5 year government bonds. The return will not be more then a percentage or two a year but it would beat a bank account.


  • #3
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    benjamin d wrote: »
    On advice from the accommodation and property forum I'm posting this here.

    I'm currently at least 4-5 years off buying a house and want to know if there's anything in that time frame I can do with my savings rather than sitting doing essentially nothing in a deposit account?
    I have a deposit account with KBC at 0.6%, and a regular saver with Nationwide UK at 2%. These are the best available AFAIK. I also have a small amount in linked finance but that's neither here nor there.
    I'm hoping to save 10k per year for the next few years but it seems a waste to have it sit there doing nothing for me.
    I know options are limited but if anyone has an idea I'm all ears.

    Depending on your income you may be able to get significant tax relief by making a bes scheme investment for a four year fixed term. There is much lower risks doing it Ltd rough a full day such as the ones operated bdo or bvp however the 2016 funds are closed as of yet and the 2017 funds are not yet available for investment.


  • #4
    benjamin d
    Registered Users, Registered Users 2 Posts: 921 ✭✭✭benjamin d


    CIARAN_BOYLE wrote: »
    Depending on your income you may be able to get significant tax relief by making a bes scheme investment for a four year fixed term. There is much lower risks doing it Ltd rough a full day such as the ones operated bdo or bvp however the 2016 funds are closed as of yet and the 2017 funds are not yet available for investment.

    I had a look at the literature for it and it seems quite confusing. Are the projected returns including what's saved through the income tax relief or is that an added bonus?
    If so, the projected return of 9.73% includes my tax relief meaning that the returns on the investment itself will be very little?


  • #5
    benjamin d
    Registered Users, Registered Users 2 Posts: 921 ✭✭✭benjamin d


    Nody wrote: »
    Well 5 years would be on the lower end for stocks but at a significant risk which would no really be suitable to what you're saving for; hence I'd look at short term interest/bonds funds or 5 year government bonds. The return will not be more then a percentage or two a year but it would beat a bank account.

    I think locking my savings in something like that is probably not worth the hassle of having my cash available if needed.
    Instead of an extra 1% on 10k I'd possibly be better off throwing another 2k or so in linked finance at c.10%(6ish after tax), leaving me with most of my cash in case of emergencies?


Advertisement