# Irish govt bonds vs retail post office savings certs



## Carolina (4 Nov 2010)

I have some cash in an post savings certs. Today it is reported that 10yr irish bonds are yielding 7%, yet 10 yr solidarity bonds only yield 4%. Are solidarity bonds equally safe compared to 10yr market bonds? If so, should I purchase market bonds through my broker rather than post office savings certs so that I can get the extra 3%?


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## Chris (4 Nov 2010)

Technically yes, you would be better off, but I would prefer to say that both are equally *unsafe*.


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## Sunny (4 Nov 2010)

Also bear in mind that Government bonds are not tax efficient as the coupons are regarded as income instead of interest.


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## jpd (4 Nov 2010)

So bear in miond your marginal tax rate - standard or higher


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## Grizzly (4 Nov 2010)

Sunny said:


> Also bear in mind that Government bonds are not tax efficient as the coupons are regarded as income instead of interest.


 
So if you are not in the tax net you are getting the interest/income tax free?


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## cullenswood (12 Nov 2010)

Chris said:


> Technically yes, you would be better off, but I would prefer to say that both are equally *unsafe*.



Is the National Solidarity Bond unsafe?   

If I had a 100k investment, am I not guaranteed to get 150k back in 10 years?


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## jpd (12 Nov 2010)

Grizzly said:


> So if you are not in the tax net you are getting the interest/income tax free?



Yes, although it is non strictly tax free but if you are below the tax thresholdthen obviously you have no tax liability


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## jpd (12 Nov 2010)

cullenswood said:


> Is the National Solidarity Bond unsafe?
> 
> If I had a 100k investment, am I not guaranteed to get 150k back in 10 years?



Well almost,  - assuming that the Irish Government ie Irish Taxpayer, does not renege on its debts.


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