What would you do with a significant sum of money to invest short term?

lintdrummer · 22-08-2021 9:21pm #1

Myself and my wife are in the final few weeks of wrapping up the sale of our house. This was our first house and not an investment property so we will not pay CG on the profit from the sale. We are moving to a different county and will rent in the medium term before buying again, hopefully in a cooled off market.

In the interim, we will have a significant lump sum. In excess of €300k. What would you do with this money if you were in this situation? Would you invest it?

We would need access to the money in a fairly short time if the right property comes up to buy so it can't be locked in for a set term.

Is a standard savings account the only real option?

Thanks.

3DataModem · 22-08-2021 9:30pm

If you want immediate access and don't want to take risk, then a standard savings account is pretty much the only option. Try and find a back that doesn't charge negative interest rates.

massdebater · 22-08-2021 10:38pm

Yeah if you absolutely need to use that money and don't want to get a mortgage for the new house, a savings account is your only realistic option.

The J Stands for Jay · 22-08-2021 10:47pm

https://www.boards.ie/discussion/comment/117790821#Comment_117790821

2 seperate bank accounts would be the best option, die to the bank guarantee.

lintdrummer · 23-08-2021 12:09am

Thanks for the responses all, the 2 separate accounts is a great idea. No takers for putting the lot into bitcoin no? 😛

lintdrummer · 23-08-2021 12:12am

I was also just looking at prize bonds... Maximum €250,000 per individual. Could be an option? After 90 days of holding you can cash them in with a 7 day turnaround.

massdebater · 23-08-2021 1:58am

https://www.boards.ie/discussion/comment/117791148#Comment_117791148

Longer term, sure. Short term, no one knows, so no!

I wouldn't bother with prize bonds tbh, you'd probably make more from the interest in the bank and not worth the 90 day lock up.

lintdrummer · 23-08-2021 10:57am

https://www.boards.ie/discussion/comment/117791345#Comment_117791345

Ya if it was longer term I'd probably invest some of it in bitcoin but the situation doesn't suit. I'm not sure about making more with a savings account...

Seems most savings accounts offer 0.01% interest on amounts greater than 50k. So in a year the 300k would make €20 after tax. That is unless you go for a fixed term which doesn't suit either if we need to withdraw early.

massdebater · 23-08-2021 3:20pm

https://www.boards.ie/discussion/comment/117792133#Comment_117792133

I only did a quick search and saw Ulster bank at 0.1% so I was basing it on you making $300. I'm not sure what accounts are actually available for you, maybe that's not realistic. A bunch of terrible options, unfortunately.

lintdrummer · 23-08-2021 8:56pm

https://www.boards.ie/discussion/comment/117793489#Comment_117793489

Ya but you need to fix the term to get those rates. So not a runner unfortunately. You're right, options are limited, that's why I think the Prize Bonds are actually a decent bet for us. No issue withdrawing the money in a hurry after the first 90 days. State backed. Might make 0.2% or more if we get lucky and if not well we won't have lost out on much considering how little the banks are paying.

borderfox11 · 14-09-2021 5:33pm

The problem with investing in volatile assets in your situation is when the time comes to buy your house the asset you invested in may have gone down, the more volatile the asset the more it may have gone down

if you need the money at short notice then a savings a/c is the only option really

What would you do with a significant sum of money to invest short term?

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