Savings Accounts

Any financial gurus here?

I have €5,400 in a Post Office Savings Bond which will mature this week. The Post Office offer me several reinvestment options. I can reinvest the sum into another Savings Bond for a period of 3 years which will pay me a guaranteed tax free return of 10%, equivalent to 3.23% per annum. I can reinvest it in a Post Office Savings Certificate which has a guaranteed tax free return of 21% over a 5 year 6 month period, equivalent to 3.53% per annum. I can lodge it to my AIB 7 day notice deposit savings account which currently pays me 3.75%AER (3% after DIRT) per annum but is a variable rate. Or I can do something else entirely... so long as it is relatively risk free.

Prize bonds might be an option. I have a relatively small amount invested in bonds and I've won small amounts of money fairly frequently.

http://www.prizebonds.ie/

I've got €100 or something in Prize Bonds which I was given for my 21st birthday from a relative. Never won anything on them but then again I suppose you need to buy in a larger frequency than that.

I'm a bit dubious about putting my money into Anglo or anything like that. I'm aware everything is covered by the State Guarantee but that doesn't help me much if the Government can't pay up .

Prize bonds have zero inflation protection. Except if you win in one of the draws. Which is based on luck.

I think I will probably put it into AIB. There is a marginal difference in interest rates but I can access it on 7 days notice online in AIB whereas it is tied up for a few years with An Post.

You could split it up and put some on longer term deposit for a better return, but longer draw down period.

Depends on when you think you will need it I suppose.

I decided to put it all into AIB for the moment added with another bit I had to put into savings. I can remove it from there at anytime (well 7 days notice) anyway so if something better comes available I can take that opportunity. With interest rates so low anyway it might be unwise to tie money up for a longer period of time.

I've great trust in RaboDirect.