Question about where best to put savings

MarcusMaximus

I received some inheritance money a while ago which I have in an access-on-demand deposit account in AIB. Along with my 2 current accounts this means that I have just under 200,000 with them. I know that under the DGS only 100,000 of that is protected. So my first question is, is it really necessary/advisable to put some of that into another institution so that no more than the guaranteed amount is in any one place? I would have thought that AIB or BOI etc. were pretty safe these days but I do need that money to be secure as I am depending on it to supplement my pension. Do most people spread their savings?

The second question is, if it is necessary to move some of the money, where is the best place to do so? My priority is to keep the money safe and secure rather than to invest it, though of course it would be nice to make some return. I also need to be able to access it when I want, preferably over the internet. I have looked into BOI but I'd need a current account there in order to open an on demand deposit account and they charge €72 a year for that privilege. EBS have no charges but it's branch only in terms of access. Raisin, Bunq etc. are attractive because of their interest rates and so on but I'm not sure I would trust them as much as an 'established' bank as I'm fairly risk-averse. Then there are prize bonds and the other State savings schemes. All a bit confusing..

So I wonder if anyone would have any advice on these two related issues. Thanks in advance.

billyhead

If you're risk averse state savings.

greyday

Are you currently receiving a pension?

If not, then load up to the limit on your pension and avail of the 20% or 40% free from Government, Bunq and Trade Republic are covered under the European Deposit scheme for 100K as well.

MarcusMaximus

Thanks for those replies. Yes state savings makes a lot of sense in my case, though I'm not sure which particular form would be best.

I think Raisin are also covered are they not? I'll have to look more into those less traditional banks.

I hadn't thought of loading up my pension. I do have a couple of smallish personal plans on the go. I'll be 66 and retiring in July so they will mature then but I still have time. Would I be better off putting the money there than into a savings/deposit account? I was thinking of going the annuity route so would lose 'possession' of the funds but could consider an ARF if there was enough in it.

28064212

State savings require a minimum three year term. Prize Bonds give a pretty mediocre return, unless you get very lucky.

Bunq are covered by the Dutch Deposit Guarantee: https://www.bunq.com/en-ie/blog/understanding-deposit-guarantee-in-european-banking. Your money would be about as safe as can be. The issue with Bunq and the other fintech companies tend to be their customer service (or lack thereof).

MarcusMaximus

Yes it would be important to be able to communicate with them if needs be. At least with an Irish bank you can go in and talk to someone!

So state savings are not immediatly accessible as a rule? Wasn't aware of that but then I've only just started thinking about all this. I would really prefer to just leave the money where it is if it were safe to do so but with all that's going on in the world you never know.. Not too worried about return, though that's probably short-sighted of me.

billyhead

https://www.boards.ie/discussion/comment/121858613#Comment_121858613

State savings are accessible at any time however you need to leave them in long term to maximise the interest returns. If you don't need quick access to you're money there the best bet.

MarcusMaximus

Ok thanks for that, will certainly consider it.

I’ve been reading some bad reports about Bunq and people’s experiences around account security as well as other issues. Hard to know if these neobanks are any less reliable and secure than the high street banks but my cautious nature is saying to steer clear, despite the very attractive interest rates. Will keep researching though.

greyday

Talk to a financial advisor, the pension is a no brainer if you can put money into it.

MarcusMaximus

Ok. I do have a good financial advisor - someone at Mercer who is the broker for my Aviva pension - but I'm never sure how unbiased their advice might be as they are surely out to push their own products..

Can you give me an idea of why putting money into my pension would be a better option than keeping it in a savings/deposit account?

Jim2007

https://www.boards.ie/discussion/comment/121862158#Comment_121862158

Before this goes any further you need to come up with a clear on what your objective is, because right not you are making no sense.

• You are concerned about the safety of your money, but you have made a conscious decision to place 200k with a financial institution in the full knowledge that it is not covered by the government guarantee
• You want internet access to the funds but are concerned about the on line players
• You want access to the funds but would now consider putting beyond that easy access in a pension fund
• You have an advisor with a well know firm but don't trust them
• And so on

I'm temporarily closing this thread until you contact me directly with some clarification.

MarcusMaximus

https://www.boards.ie/discussion/comment/121862624#Comment_121862624

Thread open again thanks!

I just want to say that I have got a lot out of everyone's contributions here and am now clearer about my options. So the discussion has been worthwhile, to me anyway.

Nothing surprises me now

Just to say when you're 66, you have free banking with BOI and AIB.

MarcusMaximus

Right. I was aware of that with AIB but not with BOI. Thanks.