# National Solidarity Bond - Saving for child's future



## mozzer (4 May 2010)

Hi,

I'm thinking of putting some money into the National Solidarity Bond - a return of 47.5% nett after 10 years so for very €1000 put in and left for 10 years, you get €475.

Does this seem like a good idea?

Mozzer


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## z107 (4 May 2010)

You will also have to take inflation off of that, and that you won't have access to your money for ten years.
Personally, I'm not very confident that this money will be very safe.


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## Towger (4 May 2010)

Money available with 7 days notice.


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## NHG (4 May 2010)

I was of the same idea, was thinking of moving my 6yr olds money from the credit union to the national solidarity bond as this money will not (hopefully) be need for at least 10 years or more.


If the money is needed before the 10 years then it only gets a very basic interest rate. 

Not 100% sure what to do yet.


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## TSThomas (4 May 2010)

Doesn't seem worth it unless you're absolutely positive you'll not need to withdraw.

http://www.statesavings.ie/products/Pages/NationalSolidarityBond.aspx

50% Gross over 10 years (AER 4.14%) consisting of:

10% In 10 annual payments of 1% which are subject to DIRT at the prevailing rate (currently 25%)
40% Tax free lump sum at the end of 10 years


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## oldtimer (4 May 2010)

I think the terms and conditions are very restrictive compared to saving certificates. Over ten years €1,000 in this bond gives €475 into the hand, but the bulk of that money doesn't qualify until the ten years are up. Over eleven years Saving certificates give €420 into the hand but look how this money is tiered over the term e.g. half way through the term saving certs will pay half the interest - this bond will pay far less. The options with saving certificates are far better and for the few euro over the term would be my choice.


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## TheJackal (5 May 2010)

oldtimer said:


> i think the terms and conditions are very restrictive compared to saving certificates. Over ten years €1,000 in this bond gives €475 into the hand, but the bulk of that money doesn't qualify until the ten years are up. Over eleven years saving certificates give €420 into the hand but look how this money is tiered over the term e.g. Half way through the term saving certs will pay half the interest - this bond will pay far less. The options with saving certificates are far better and for the few euro over the term would be my choice.


 
+1


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## Lightning (5 May 2010)

Well said Oldtimer, good advise.


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## dazeconfuse (25 May 2010)

This is very helpful, thank you. Do you have an opinion on whether these are totally secure?


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## Chris (25 May 2010)

dazeconfuse said:


> This is very helpful, thank you. Do you have an opinion on whether these are totally secure?



Here's my 2c:
1) "Solidarity Bond" is Orwellian New-speak for a "WeMessedUpAndAreTotallyBroke Bond"
2) Do you believe Cowen and Co. that the debt is managable, even though they were wrong on ALL other economic predictions and only listen to what they want to hear, and not what they need to hear?
3) Do you believe Morgan Kelly who predicted the crash and believes that it is a mere factor of time and not if Ireland goes broke?

Personally I won't be touching any government bonds, Irish or other, with ten foot pole, but don't take that as a recommendation.


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## dazeconfuse (25 May 2010)

Thanks for that Chris, it's good to hear an honest opinion! Would you have an opinion about where _is_ safe to put your money, if the worst comes to the worst?


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## brendanyumo (25 May 2010)

dazeconfuse said:


> Thanks for that Chris, it's good to hear an honest opinion! Would you have an opinion about where _is_ safe to put your money, if the worst comes to the worst?


The safest would be gold or silver.If you want to invest in currencies then your best bet will be the Norwegian and Swiss currencies.Do your research before investing.


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## Chris (26 May 2010)

dazeconfuse said:


> Thanks for that Chris, it's good to hear an honest opinion! Would you have an opinion about where _is_ safe to put your money, if the worst comes to the worst?


There are two things you need to consider: (1) will Ireland default (2) has the euro a chance of surviving.
To protect yourself from Ireland defaulting you should avoid Irish government bonds of all sorts including post office certs. Personally I have also moved cash out of the country, as you never know how desperate a governemnt may get.
On the second point brendanyumo has already made good suggestions:



brendanyumo said:


> The safest would be gold or silver.If you want to invest in currencies then your best bet will be the Norwegian and Swiss currencies.Do your research before investing.



Also look at this thread for some suggestions: http://www.askaboutmoney.com/showthread.php?t=137727

Bottom line is that you need to make up your own mind based on information available. Please don't take any of the above as a recommendation, but rather as things to consider before making a decision.


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