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Should I put a large amount of money 20-40k into a savings account?

  • 18-11-2020 7:37pm
    #1
    sweet_trip
    Closed Accounts Posts: 275 ✭✭


    After 2 years of house hunting with a flimsy mortgage that can't net me anything beyond a terraced slum house. I'm giving up on the dream of owning a nice little house with a garden.


    So I have 50k in total. I'm still working and about to start renting due to a number of reasons.



    I've looked at bank savings accounts, but to be honest it's all extremely confusing to me. I'm terrible with numbers and maths.
    Bonkers is telling me most bank savings accounts only have an AER of between 0.1 and 0.5% AER.

    I presume this means I get that % of my total deposit per year? That seems pathetic to me.


    I was thinking of putting about 40k into something for the future.



    Is there any feasible way to turn my savings into something better?


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,036 ✭✭✭✭Geuze


    The main interest rate is zero at the moment, so all deposit rates are practically zero.

    The best deposit rates are listed on AAM:

    https://www.askaboutmoney.com/threads/savings-best-buys.90481/


  • #3
    Lenar3556
    Registered Users, Registered Users 2 Posts: 1,711 ✭✭✭Lenar3556


    sweet_trip wrote: »
    After 2 years of house hunting with a flimsy mortgage that can't net me anything beyond a terraced slum house. I'm giving up on the dream of owning a nice little house with a garden.


    So I have 50k in total. I'm still working and about to start renting due to a number of reasons.



    I've looked at bank savings accounts, but to be honest it's all extremely confusing to me. I'm terrible with numbers and maths.
    Bonkers is telling me most bank savings accounts only have an AER of between 0.1 and 0.5% AER.

    I presume this means I get that % of my total deposit per year? That seems pathetic to me.


    I was thinking of putting about 40k into something for the future.



    Is there any feasible way to turn my savings into something better?

    There are savings bonds which can offer decent returns, but with associated risk - they are funds which are invested in the stock market. You could speak to a financial broker about these, but I would tread carefully.

    If you are planning on putting it away for a while you could look at the An Post solidarity bonds.


  • #4
    Shedite27
    Registered Users, Registered Users 2 Posts: 9,469 ✭✭✭Shedite27


    sweet_trip wrote: »
    After 2 years of house hunting with a flimsy mortgage that can't net me anything beyond a terraced slum house. I'm giving up on the dream of owning a nice little house with a garden.


    So I have 50k in total. I'm still working and about to start renting due to a number of reasons.



    I've looked at bank savings accounts, but to be honest it's all extremely confusing to me. I'm terrible with numbers and maths.
    Bonkers is telling me most bank savings accounts only have an AER of between 0.1 and 0.5% AER.

    I presume this means I get that % of my total deposit per year? That seems pathetic to me.

    I was thinking of putting about 40k into something for the future.

    Is there any feasible way to turn my savings into something better?
    Unfortunately rates are so low at the moment, nothing is going to give you a return in the savings world. Even €40k at 0.5% AER gets you €200 a year. Not gonna get you much further on the house market.

    As it's the deposit on your house, I'd be slow to put it into anything too risky. Prize Bonds are nearly as good as you'll get. Won't give any guaranteed return at all, but ya might get lucky, and at least won't lose your money.


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