I need a safe place for my short-term money

QI HAVE €139,000 after repaying my mortgage from the sale of an investment property and am going to do nothing for at least six months to a year. Have you 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.

ASAFETY and preservation of your capital, Marjorie – they are the two most important aspects to your query. Safety, in that your funds must be guaranteed to be repaid by the deposit taker. All Irish deposit takers are currently guaranteed by the Government’s Deposit Guarantee Scheme up to €100,000 per person, once the deposit taker is regulated by the Central Bank of Ireland, but you can certainly relax for six months as the money was the proceeds of a sale, so as a single person, you would have six months’ capital protection up to €1million.

Best demand account? AIB has the best Irish offering at 0.25% on demand, 0.1675% after 33% Deposit Interest Retention Tax (Dirt). I am not including the overseas banks such as Bunq and Raisin.ie as there are complications in making your self-assessment returns to Revenue each year.

The National Treasury Management Agency (NTMA), which looks after the State savings on behalf of the Government, including An Post Money, offers safety and good value but its offerings are more long-term. Its ten-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you only have to give seven days’ notice to withdraw from this NTMA investment but lose the interest on that amount withdrawn.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 can’t withdraw for three months, then can cash in after seven days’ notice. You are in the draw from day one – the prize fund was tripled last October. Minimum €25 – maximum €250,000 per person. Good luck.