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Public Sector Magazine

Investing wisely Savings and Investments –Where to invest now? A guide to smart investments from Investwise.

For the first time in a generation, Net Deposit Interest Rates (after tax) have fallen below CPI in Ireland. With close to €80bn still held on deposit by Irish savers, there is mounting pressure on these investors to look for alternatives. This has also opened up opportunities for the banks and investment firms to promote a bewildering range of investment options that look attractive and play on exactly the type of pressure savers are feeling at the moment. So, what are the alternatives? Firstly, with DIRT rates increasing to 41% in January, Permanent TSB and KBC have a range of ‘interest-first’ accounts across terms from 12 months to 2 years. As these accounts pay the interest up-front, they will make the most of current DIRT rates (33%), which may still be available. This is a good opportunity to save 8% on DIRT. Once investors decide they want a higher return than the current deposit rates they must move up the risk scale and take some level of risk. The obvious alternative to deposit accounts being promoted heavily at the moment is an investment into ‘Capital Guaranteed’ structured products. These are investments which promise some form of guarantee on your initial investment, along with the potential to achieve higher returns linked to an assets. These structured products are typically linked to a stock market

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the Public Sector Magazine

David Quinn, Investwise

index or third party fund. On first inspection this seems like a great deal. You have very little risk of losing your money, and could get strong stock market based returns. However, it is only when you

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