# State savings new issue



## alwaysonit (1 Jun 2022)

Who is expecting a new batch to be announced soon?
Are you expecting better or worse rates than the current issue?
From memory the new issues are usually released around bank holiday weekends - with one coming up and none having been released in a while I would not be surprised to see a release in the coming week.


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## noproblem (1 Jun 2022)

alwaysonit said:


> Who is expecting a new batch to be announced soon?
> Are you expecting better or worse rates than the current issue?
> From memory the new issues are usually released around bank holiday weekends - with one coming up and none having been released in a while I would not be surprised to see a release in the coming week.


What's your reasoning for assuming new rates?


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## NoRegretsCoyote (1 Jun 2022)

noproblem said:


> What's your reasoning for assuming new rates?


The cost of market funding for the state has increased about 100bps over the last 18 months and generally state savings rates track this (with a lag).

That said the state's cash borrowing needs are only €1bn this year and is set to turn negative over the next few years, so not much need for new funds.


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## tallpaul (1 Jun 2022)

With deposit interest rates likely on an upward curve, I would not rush into any new purchase of the current issues. I have one savings cert maturing towards the end of June and will wait as late as possible before renewing.


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## noproblem (1 Jun 2022)

tallpaul said:


> With deposit interest rates likely on an upward curve, I would not rush into any new purchase of the current issues. I have one savings cert maturing towards the end of June and will wait as late as possible before renewing.


I've seen no predictions or advice on where deposit rates are heading from any of our soooooooo knowledgeable financial gurus.


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## alwaysonit (2 Jun 2022)

noproblem said:


> What's your reasoning for assuming new rates?



I didn't assume new rates.
I think there is a chance there will be a new issue soon because
1 - Historically new issues have been released over bank holiday weekends
2 - There has not been a new release in a while


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## tallpaul (2 Jun 2022)

noproblem said:


> I've seen no predictions or advice on where deposit rates are heading from any of our soooooooo knowledgeable financial gurus.


But you did see that inflation is now at 8.1%? Obviously one of the measures to counteract inflation is raising interest rates. It is logical to consider that deposit rates would move in line with any increase.


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## noproblem (2 Jun 2022)

Why?


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## noproblem (2 Jun 2022)

tallpaul said:


> It is logical to consider that deposit rates would move in line with any increase.


Probably me, but why would they?


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## joe sod (2 Jun 2022)

noproblem said:


> Why?


because the ECB is raising interest rates and stopping QE also the interest rates on irish government bonds has risen alot lately, i doubt the irish government would be able to deny "the little people" their rate rise


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## DirectDevil (3 Jun 2022)

Some people might prefer just an increase in the maximum holdings instead


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## mcriot29 (3 Jun 2022)

Ecb rate rises two this year .25 each time .
So I would expect a 10 year state savings rate of around 30 percent by end of year


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## Savvy (3 Jun 2022)

mcriot29 said:


> Ecb rate rises two this year .25 each time .
> So I would expect a 10 year state savings rate of around 30 percent by end of year


That would equate to a AER of 2.65%. Not sure they would be that generous just yet.


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## noproblem (3 Jun 2022)

mcriot29 said:


> Ecb rate rises two this year .25 each time .
> So I would expect a 10 year state savings rate of around 30 percent by end of year


There's hope so


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## messyleo (4 Jun 2022)

Savvy said:


> That would equate to a AER of 2.65%. Not sure they would be that generous just yet.



Agree - I think going back to the 19% after 10 years level (at most) they had for quite a while, is more realistic by year end.


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## noproblem (4 Jun 2022)

gravitygirl said:


> Agree - I think going back to the 19% after 10 years level (at most) they had for quite a while, is more realistic by year end.


Go on lads and girls, someone's paying you to keep us happy today. That's just ludicrous.


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## Allpartied (10 Jun 2022)

Savvy said:


> That would equate to a AER of 2.65%. Not sure they would be that generous just yet.


If inflation is hitting 7 or 8% a year, thats not very generous.


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## DCSF (5 Sep 2022)

Any updates about on a new issue??


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## noproblem (5 Sep 2022)

DCSF said:


> Any updates about on a new issue??


You must have a big wad to shuffle


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## DCSF (5 Sep 2022)

noproblem said:


> You must have a big wad to shuffle


I can neither confirm nor deny that allegation


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## mcriot29 (7 Sep 2022)

I was on the phone to them setting up my online banking with them I asked about any new issue.
Guy told me they always here talk well before it happens but not a word yet so I guess nothing this month anyways


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## Sarenco (7 Sep 2022)

10-year Irish government bonds are now yielding around 2.2%, which makes State Savings products look pretty unattractive at the moment.


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## Groucho (7 Sep 2022)

Sarenco said:


> 10-year Irish government bonds are now yielding around 2.2%



Is that tax free?


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## Sarenco (7 Sep 2022)

Groucho said:


> Is that tax free?


Interest payments on Government bonds are subject to income tax but there’s no CGT on capital gains.


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## horse7 (8 Sep 2022)

Are you sure about that, this is a quotation from NTMA:   Fixed Term Products, Instalment Savings and Prize Bonds winnings are not subject to Deposit Interest Retention Tax (DIRT) and are exempt from Income Tax, Pay Related Social Insurance and Capital Gains Tax in Ireland.


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## Sarenco (8 Sep 2022)

State savings products are tax-free but the question related to government bonds.


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## mcriot29 (8 Sep 2022)

Government bonds you pay income tax prsi etc on them


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## noproblem (3 Oct 2022)

alexsmith468547 said:


> Will savings interest rates go up in 2022 Ireland?
> 
> 
> *ECB rates will be rising again in 2022* – so we expect some small increases in deposit rates over the coming months. You can get interest rates at online banks in Europe that are as much as 200 times bigger than the tiny 0.01% offered by the main banks in Ireland.


Give us a link to all of those banks and rates please?


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## ClubMan (3 Oct 2022)

noproblem said:


> Give us a link to all of those banks and rates please?


And also the characteristics of such accounts... E.g. demand, notice, fixed term, lump sum, regular saver, min/max balance, etc. I can't imagine that there are too many banks offering 2% gross on deposits/savings (and I'm discounting UK/£ accounts for obvious reasons).


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## DCSF (26 Oct 2022)

gravitygirl said:


> Agree - I think going back to the 19% after 10 years level (at most) they had for quite a while, is more realistic by year end.


Anyone hear anything as yet?


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## noproblem (26 Oct 2022)

DCSF said:


> Anyone hear anything as yet?


Not so much as a whisper. My advice is, believe nothing unless you hear it from me first and you might be waiting a while


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## losttheplot (26 Oct 2022)

ClubMan said:


> And also the characteristics of such accounts... E.g. demand, notice, fixed term, lump sum, regular saver, min/max balance, etc. I can't imagine that there are too many banks offering 2% gross on deposits/savings (and I'm discounting UK/£ accounts for obvious reasons).


You can find 2% on Raisin.ie. 2yr Fixed term. 3% for 5 years. Both are with a French bank
There's a referral bonus of €50 if you're interested.


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## ClubMan (26 Oct 2022)

losttheplot said:


> You can find 2% on Raisin.ie. 2yr Fixed term. 3% for 5 years. Both are with a French bank
> There's a referral bonus of €50 if you're interested.


What's the tax treatment in that case?


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## losttheplot (26 Oct 2022)

ClubMan said:


> What's the tax treatment in that case?


Some banks deduct Witholding Tax at their domestic rate, if you supply Tax Residency Certificate, they refund it. Others don't. You make a declaration to revenue in your tax return


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## irbx (26 Oct 2022)

losttheplot said:


> Some banks deduct Witholding Tax at their domestic rate, if you supply Tax Residency Certificate, they refund it. Others don't. You make a declaration to revenue in your tax return


Is it taxed as income or dirt?


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## losttheplot (26 Oct 2022)

irbx said:


> Is it taxed as income or dirt?


DIRT as far as I know.


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## DCSF (26 Oct 2022)

noproblem said:


> Not so much as a whisper. My advice is, believe nothing unless you hear it from me first and you might be waiting a while


Surely if the ECB hike rates again tomorrow deposit rates will have to start moving up?


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## noproblem (26 Oct 2022)

DCSF said:


> Surely if the ECB hike rates again tomorrow deposit rates will have to start moving up?


Why would you think that?


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