10 Year National Solidarity Bonds

[Basicilly09]

For 10 Year National Solidarity Bond it states the below in case of early redemption. Does anyone know how this calculation works in practice?

"Repayments made before the first anniversary date will receive a bonus payment based on Principal being repaid at the rate of 0.15% based on the number of days on deposit (excluding date of repayment)"

"Repayments made between anniversary dates will received a bonus payment at the rate of 0.15% based on the number of days on deposit on the total of the repayment (Principal + Bonus) value at the last anniversary date. (excluding date of repayment)"

Thanks

 

[Homer]

It sounds fairly straightforward to me. If you cash the bonds in mid year, you get the value at the beginning of that year plus interest at the rate of 0.15% p.a. over the period since the end of the previous year.

Therefore, if you cash in €10,000 worth of bonds after 4 months, you get

€10,000 x 1.0005 = €10,005.00

If you cash in after 5 years and four months, you get

€10,060 x 1.0005 = €10,065.03

Above figures are not precise because it depends on the number of days in each month.

 

[upupup]

I was looking at these bonds also and thought they might be appropriate to me. My problem is how residency affects the payment of tax on any gains. Could someone please direct me to a definition of resident as far as the 'tax free for residents' rules apply?

An example is a person having to leave the state to seek work for 3-4 years and is a non resident for income tax etc (> 183 days per annum outside the state) but still domicile in Ireland - how is residency applied in this scenario?