Q – I have € 139,000 after repaying my mortgage from the sale of an investment property and am going to do nothing for at least 6 months to a year. Any ideas on where to put the money to make a gain for this short period ? Rates are still awful and I also need it to be safe. Marjorie – Bray Co Wicklow

A – Safety and preservation of your capital Marjorie – 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 once the deposit taker is regulated by the Central Bank of Ireland but you can relax certainly for 6 months as it was the proceeds of a sale so as a single person, you would have 6 months’ capital protection up to € 1million !

Best demand account ? AIB Bank has the best Irish offering at 0.25% on demand…0.1675% after 33% DIRT tax.. I am not including the overseas banks such as Bunq and Raisin.ie as there are complications to make your own self-assessment returns to Revenue each year.

The National Treasury Management Agency (NTMA) who look after 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 their 10 year National Solidarity Bond offers 22% tax free on maturity ( equivalent to a gross rate of 3% each year ) In emergencies you only have to give 7 days’ notice to withdraw from this NTMA investment but lose the interest on that amount withdrawn. Best government short term deposit ? Prize Bonds – a joint venture with FEXCO. You cannot withdraw for the first 3 months, then can cash in after 7 days’ notice but you could also win as you are in the draw from day one – the prize fund was tripled on 1st October last ! Minimum € 25 – maximum € 250,000 per person. Good luck.


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