# National Solidarity Bond 4 years v State Savings 3/5.5 years



## TheJackal (7 Feb 2011)

Now that the 4 year National Solidarity Bond has been announced, I'd like to compare it to the 3 & 5.5 year State Savings rates currently on offer.
http://www.statesavings.ie/products/Pages/default.aspx

Like the 10 year National Solidarity Bond, this 4 year product is not fully subject to DIRT.

Has anyone been able to work out what % rate a normal deposit account would need to be paying to match this rate? This should allow for an easier comparison of the 3/4/5.5 year options.


As a sidebar, I also note that for the thread *Term Deposits (Fixed Lump Sum Savings)*, the 4 & 10 year rates are not on the list of highest term deposit rates (but are further down).
http://www.askaboutmoney.com/showthread.php?t=101813


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## Black Rock (7 Feb 2011)

Take the net after tax figures as shown on back page (p.6) of NTMA Brochure 1 or 2 or 4 from the State Savings website which are as follows
……………………………………….………..….*Net..........TOTAL* 
*NTMA State Savings …………………..AER........ RETURN *
3 year Savings Bonds ………....…………..3.23% 10.00%
4 year National Solidarity Bonds ……..3.31% 13.92%
5 ½ year Savings Certificates……………3.53% 21.00%
10 year National Solidarity Bonds….…3.95% 47.30%

Divide these figures by 73 and multiply by 100 (grossing up for 27% DIRT) to provide the following answer to your question

…………………………………………………….*Gross…….TOTAL *
*NTMA State Savings …………….......AER.........RETURN *
3 year Savings Bonds …………………......4.42% 13.70%
4 year National Solidarity Bonds ……..4.53% 19.07%
5 ½ year Savings Certificates……………4.84% 28.77%
10 year National Solidarity Bonds…....5.41% 64.79%


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## Lightning (7 Feb 2011)

TheJackal said:


> As a sidebar, I also note that for the thread *Term Deposits (Fixed Lump Sum Savings)*, the 4 & 10 year rates are not on the list of highest term deposit rates (but are further down).
> http://www.askaboutmoney.com/showthread.php?t=101813



Hi there, 

Thanks for your feedback on the best buys. 

I have listed a selected number of terms at the top of the thread. Not all terms. 

Locking your money away for 10 years is very unsuitable for most savers. I don't want to encourage people to do this.


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## Lightning (7 Feb 2011)

Black Rock said:


> Take the net after tax figures as shown on back page (p.6) of NTMA Brochure 1 or 2 or 4 from the State Savings website which are as follows
> ……………………………………….………..….*Net..........TOTAL*
> *NTMA State Savings …………………..AER........ RETURN *
> 3 year Savings Bonds ………....…………..3.23% 10.00%
> ...



Hi Black Rock, 

Thanks for your analysis. 

I will add 4.53% as the "normal deposit account rate" comparison to the best buy thread.


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## Lightning (8 Feb 2011)

Blackrock, 

I cannot reply to your 3 private messages, you sent me on this topic, as you have blocked everyone from sending private messages to you.

I suggest you post your suggestions here or unblock private messages and I will reply. 

Thanks


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