# national recovery bond



## irishlinks (29 Apr 2010)

maura said:


> Does anyone know if there is an update on this bond?



It was announced this evening. 1% basic rate with bonuses. Max possible is 50% over 10 years. Bonuses free of tax.
More details here http://www.*****************.com/national-solidarity-bond.html


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## Gervan (1 May 2010)

It's not a very impressive return. I wonder who they are hoping will invest.


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## z107 (1 May 2010)

What's the verdict then? - One to avoid?

For me, ten years is far too much risk verses (possible) return.


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## camel (1 May 2010)

It sounds ideal for someone who wants to put their money somewhere and not think or worry about it. Prevents them spending the money as much as anything else.

But 10 years is a long time. What will inflation be in 5 years time!? I think I'll do my bit and put in a modest amount, 3K or so.


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## brendanyumo (1 May 2010)

I've read a bit about this and listened to 'experts' on de radio.From what I've learn't I wouldn't touch it with a barge pole.An Post savings certificates offer a better rate and thats where I'm putting a few bob for my Son so he can get to college.


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## camel (2 May 2010)

brendanyumo said:


> I've read a bit about this and listened to 'experts' on de radio.From what I've learn't I wouldn't touch it with a barge pole.An Post savings certificates offer a better rate and thats where I'm putting a few bob for my Son so he can get to college.



Actually I'm not sure that's totally accurate. (From the Anpost.ie website) the AER on savings certificates is 3.53%. The AER on the solidarity bond is 4.14%. Which would make the bond better if you commit to the 10 years (as most of the interest is paid on the form of bonuses).


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## Tentman (2 May 2010)

camel said:


> Actually I'm not sure that's totally accurate. (From the Anpost.ie website) the AER on savings certificates is 3.53%. The AER on the solidarity bond is 4.14%. Which would make the bond better if you commit to the 10 years (as most of the interest is paid on the form of bonuses).


Remember as well, you dont pay DIRT on Savings Certificates, whereas you will with the Solidarity Bond. Not great IMHO.


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## Lightning (2 May 2010)

The 1% is fixed, not variable. 

From the State Savings website: "1% *fixed* interest paid annually for 10 years". 
Source: http://www.statesavings.ie/Downloads/NSBBrochure.PDF



> *State Savings: National Solidarity Bond*
> 10 Years 3.96% (A normal deposit account would need to be paying *5.28%* to match this rate because this product as the interest is not fully subject to DIRT)
> Note 1: €500 minimum, €250,000 maximum (€500,000 for joint account)
> Note 2: The bonus on this account is not subject to DIRT, the normal interest is subject to DIRT.
> ...


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## irishlinks (2 May 2010)

Tentman said:


> Remember as well, you dont pay DIRT on Savings Certificates, whereas you will with the Solidarity Bond. Not great IMHO.



Dirt is not payable on the bonus element of the Solidarity Bond.

The figure after DIRT on the Solidarity Bond is 3.96% (after 10 years)
The 3.53% on Savings Certificates is (after 5.5 years)

www.*****************.com


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## Brendan Burgess (4 May 2010)

I have set out an FAQ here

http://www.askaboutmoney.com/showthread.php?t=137311

Brendan


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