Q – I have € 188,000 from the sale of my house and am not rebuying for at least 6 months to a year. Any ideas on where to put the money to make a gain for this short period ? I also need it to be safe. Patrick – Co Wicklow
A – Safety and best rates Patrick – they are the two most important aspects to your query. Safety in that your funds MUST be guaranteed by the deposit taker to be repaid. All the Irish deposit takers are currently guaranteed by the government’s Deposit Protection Scheme up to € 100,000 per person per institution once the deposit taker is regulated by the Central Bank of Ireland. The National Treasury Management Agency (NTMA) a government body who look after all monies including the state savings on behalf of the government including An Post monies offer safety and good value but their offerings are more long term. Take the National Solidarity Bond – it now offers 22% tax free after a 10 year term which is equivalent to receiving 3% gross each year from a DIRT deducting deposit taker (DIRT tax is currently 33% of interest earned ). This is the BEST deposit investment in Ireland. To withdraw you only have to give 7 days’ notice but you lose all interest earned on that withdrawn amount. Best non NTMA deposit on demand ? An Post’s 0.75% or 0.5025% after DIRT tax ! On your € 188,000 after 6 months you would receive € 472.35 into your hand with DIRT tax deducted. Better than nothing…though you could also invest in as safe Prize Bonds. Well done on selling the house and best wishes with the new home when you buy it.