# Banks lobbying for another cut in NTMA State Savings rates?



## The Ghoul (14 May 2013)

A friend of mine said he heard this on the radio and thought it was in the print media too. I went looking and found this

http://www.irishexaminer.com/archiv...y-for-an-post-to-cut-deposit-rate-231090.html

Last year there were several reports in the media that the Irish Banking Federation was lobbying for a cut in State Savings rates. In December, rates were cut. Even after the cut the rates remained quite good compared to bank deposits due to reduction in bank interest rates, increase in DIRT in Budget 2013 and low inflation. 

Time for some more boot filling?


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## Lightning (14 May 2013)

Thanks for sharing this.

Reading between the lines of what the DoF and NTMA said, another rate cut for State Savings products seems highly plausible.


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## Lightning (19 May 2013)

The Sindo today have made reference to the banks lobbing for a cut in NTMA State Savings rates.


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## theresa1 (19 May 2013)

If State Savings rates are cut again within the next few months I for one will be very annoyed.


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## Lightning (19 May 2013)

Lock now to avoid getting annoyed!


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## The Ghoul (19 May 2013)

> If State Savings rates are cut again within the next few months I for one will be very annoyed.


Look at it this way though, many of us here on AAM filled our boots with SS products to a greater or lesser extent both before last December's cut and since the cut and there is still time for more boot filling. The fact that the banks lobbied for a reduction last year and are now lobbying again means that this was/is a decent strategy (assuming there is no haircutting or defaults later) 

Basically, when bankers are unhappy, Ghoul is happy  Some of my bonds will mature in 2014 so I won't be as happy then assuming the rate is cut but c'est la vie and who knows what the future will bring in any case.

Although I have to admit to feeling a little smug after reading that Sunday Indo article about smart money going into the Post Office. I well remember the slagging I got in 2006 when my SSIA matured and I told a couple of work colleagues that I was buying a savings bond with it rather than doing what they proposed (bank shares or a deposit for a BTL property!).


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## Silvera (22 May 2013)

I have been reviewing my savings options and have just (again) read over the various 3,4,5,6 and 10 year NTMA options. I have to say...why would I go with any other bank when the NTMA offer such good rates?!

CiaranT,

What do you mean by 'lock now'? 
Can NTMA rates be 'locked' at the time of purchase??


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## dub_nerd (22 May 2013)

Silvera said:


> I have been reviewing my savings options and have just (again) read over the various 3,4,5,6 and 10 year NTMA options. I have to say...why would I go with any other bank when the NTMA offer such good rates?!
> 
> CiaranT,
> 
> ...


 
The rates don't change after you buy or, indeed, at any time for a given issue. To [broken link removed]: "_Savings Bonds, Savings Certificates, Instalment Savings, and National Solidarity Bonds have fixed rates over the term of the investment so any money already placed in the existing issues of these products will continue to receive the old rates for the remaining term of the product._"

A question of my own: does anyone know if the maximum allowed investment in a product applies across all issues, or is per issue? In other words, can you buy the new issue if you are already maxed out on the previous one?


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## pudds (22 May 2013)

dub_nerd said:


> A question of my own: does anyone know if the maximum allowed investment in a product applies across all issues, or is per issue? In other words, can you buy the new issue if you are already maxed out on the previous one?



€740k is the max for an individual across the various products.


[broken link removed]


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## The Ghoul (22 May 2013)

dub_nerd said:


> A question of my own: does anyone know if the maximum allowed investment in a product applies across all issues, or is per issue? In other words, can you buy the new issue if you are already maxed out on the previous one?


I asked that question before and am pretty sure that the limits are per issue for all products. So, if for example, you have already have 120k of 17th issue saving certs, you can purchase a further 120k of the 18th (current) issue.


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## oldtimer (22 May 2013)

The Ghoul said:


> I asked that question before and am pretty sure that the limits are per issue for all products. So, if for example, you have already have 120k of 17th issue saving certs, you can purchase a further 120k of the 18th (current) issue.


Yes, you are correct, limits apply per issue for all products.


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## sixshooter (28 May 2013)

Hi,
Thanks for the clarity on €740k being the max for an individual across the various products.  But is there government deposit protection for 740K in this case?


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## theresa1 (28 May 2013)

The repayment of all State Savings™ money is a direct, unconditional obligation of the Government of Ireland.

There is no upper limit on the amount protected.
There is no expiry or end date for this protection.


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## sixshooter (28 May 2013)

Thanks Theresa1


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## theresa1 (28 May 2013)

Anybody any idea why the 6 Year Instalment Savings Product gets such little publicity from State Savings? 

[broken link removed]

Check out the website and Brochure Number 2.

It's another option to save €12,000 tax free after all.


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## Lightning (28 May 2013)

theresa1 said:


> Anybody any idea why the 6 Year Instalment Savings Product gets such little publicity from State Savings?



The product is for a very long period of time and the product is unnecessarily convoluted.   

The product is listed by the NCA and others as a regular saver product. In reality, it is a hybrid regular saver and term deposit product. It is a regular saver product for year 1 and a term deposit product for year 2 to year 6. Hence, in fact, it is more of a term deposit product than a regular saver product. 

There are very few people who want to save for 1 year, then stop, then keep the money locked away for 5 years. It is a strange set of saving circumstances.

The NTMA would be best off making changes to this product to simplify it. Make it a regular saver product or a term deposit product. Not both.


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## theresa1 (30 May 2013)

Totally agree Ciaran but in the unlikely event that a saver hit the €740,000 it's another option for saving €12,000 and get interest tax free.


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## cbreeze (31 May 2013)

There are very few people who want to save for 1 year, then stop, then keep the money locked away for 5 years. It is a strange set of saving circumstances.

Although the max you can save is 1k a month, once it is set up it rolls over after 12 debits, and it is the second best aer of the ntma products.


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