Q. Deposit interest rates are still low and likely to decrease but not at the same rate they increased, so do you have any suggestions for alternative investments that might make better returns ? I have € 23,000 to invest for up to 5 years. Padraic – Longford
A. Thanks Padraic. Yes interest rates are not expected to rise as they are now on a downward trend…mortgage holders will be pleased. It comes down to that old adage – if you want growth you have to take some risk. There are many forms of alternative investments… stock market, property, precious metals, art, rock n roll memorabilia ( a guitar used by John Lennon in 1965 was sold for over $2million recently in Julien’s Auctions NY ) first edition books, philately (stamps), numismatics (coins), diamonds, classic cars. You can even work out the return on the humble prize bond – divide the winnings received by the amount held to determine the percentage return… if you are receiving more than 1.5% over the year you are doing well as it is a net figure. You could of course invest in yourself – do a Masters, take up a new interest, start a hobby. A word of caution : if you do not understand the investment you are being asked to put your money into or it is too good to be true, stick to the deposit account until you are sure about the investment. There are too many scams about and you need to be careful – take professional advice.