NEED MY REDUNDANCY LUMP SUM TO BE SAFE
Q – At 47 years of age, I was made redundant and have € 63,000 to put on deposit. I have nothing planned at this moment but may use the money in about 6 months to start my own little business. Where is the safest and best rates at the moment ? Mick – Mullingar Co West Meath
A – You are absolutely right Mick – safety and best rates : that is the order in which you should prioritise your redundancy. The National Treasury Management Agency (NTMA), a government body, manage all the state savings products from Savings Bonds, Saving Certificates to the National Solidarity Bonds ( both the 10 year and the 4 year offering ) plus the Prize Bonds via post offices or online. All guaranteed by the government – maximum investment is € 120,000 per person and € 250,000 for prize bonds. All the Irish deposit takers are guaranteed by the Deposit Protection Scheme which guarantees up to € 100,000 per customer per institution in deposit takers regulated by the Central Bank of Ireland. This guarantee also includes credit unions. Best rates ? All the state saving products are ALL better than the best bank or building society deposit offerings BUT shortest term is 3 years. Outside of the State Savings products, Bank of Ireland’s 6 month fixed deposit account rates at 1.51% Annual Equivalent Rate is the best on the market ! So effectively let me put it this way, after 6 months, you can look forward to a net interest sum of € 318.68 after DIRT tax ! Best demand deposit interest rate is An Post Money’s 0.75% ( net 0.5025% ) I might be tempted to invest in the Prize Bonds for those 6 months… Roll on your business.