Hi

I'm trying to understand at what point me taking some of my money out of a UK instant access savings account and transferring into a € account would become profitable, ignoring for a moment the risks and transactions costs.

Assuming I can get 4.8% net on a £35K chunk then in 12 months I'd have made the pot rise to £36,680.

At today's exchange rate I can get €47,950 for £35K (0.73 € to £).

With a conservative estimate of 0.25% net interest per year (taking pot to €48,069.88) in a euro account then the exchange rate would have to become 0.77 € to £ so that converting back - to put towards a house, say - gets me more than my £36,680 (€48,069.88 * 0.77 = £37,0138).

Have I missed something?

Thanks

Dear OMG

Currencies this far forward????
Cant say if the interest rate differentials will remain the same.
You may be better looking to spread the risk.

Look at putting some (max of 20%) in a better return have a look at www.amasiscapital.com they or a company like them will do the spread.