Confusion

BJLake

Having read through lots of different data about savings a/cs etc I am now totally unsure of what I should now do with the amount of money I have.
I have a fairly large amount of money from the sale of my property which I intend to use to purchase another property abroad within the next few months. The purchase will be Euros, my question is, in light of pretty good savings rates from varous banks, mainly around net 4.30% etc, should I purchase Euros since the euro is on the move up and make a profit gain from doing that and transfer to my foreign account or, put the money in a savings account where I earn a reasonable net amount but which when calculated averages out at about the same profit as made from the euro. Having spoken to various banks I am really none the wiser! Can anyone who has been, is in the same position, maybe point me in the right direction.

DocProc

Your post reads a little bit along the lines of, "I have read a bit about the latest research into genetics. I am interested in genetics and need to get started with a job as a geneticstestistician next week. Please tell me where to apply so as to guarantee I get my new job."

Hey, slow down. In fact, read your post again. You are almost coming over with 76m considerations and want 117m answers for 1155m questions.

Keep it simple. You need to learn and experience some basic simple stuff first.

Why?

Well, because 'simple' and 'easy' doesn't necessarily mean 'less profitable'.

In fact, stick your money - "half in ICICI HiSAVE/half in Landsbanki's Icesave" - and you won't go far wrong.

tom188

Here are some points to consider/questions to ask yourself.

If you think youll get more euros to the pound in six months, then keep sterling.
If you think youll get fewer euros to the pound in six months, change now.

since the euro is on the move up

At the moment, but things can change.

Can you afford what you want now? Would the above make a difference? What if you could buy 25% less in six months time, or 25% more? (quite extreme cases hopefully).

Changing to euros now will eliminate any currency risk, but will not necessarily give the most profit. But it will offer certainty.

The difference in interest rates between UK and eurozone is a much smaller factor to consider than this exchange rate fluctuation, particularly over this timescale.