An Post Interest Rate

P

PDCAT

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Hi

I was wondering could anyone here help with regards to this rate. i have 180k to deposit which i won't need for a period of time.
i was looking at depositing it in Irish Nationwide at their rate of 3.50% for 1 year. I know this interest is subject to Dirt Tax at 25%.

Then, i noticed on best buys, the An Post rate. Had a look at their rate for both Saving Certificate (5.5 yrs) and Saving Bonds (3 yr) and seems fairly good

From what i could make out on 180K the 3 yr rate would give me 18K interest and the 5.5K rate would give me 37.8K interest with no DIRT Tax applicable. Just wondering have i my figures correct here. There website gives the interest on 1K over each year.

For example after 5.5yrs at 1K you recieve 210 euro interest and in 3yr rate on 1K you receive 100 euro interest.

Also with regards to Deposit accounts with An Post, is all my money guaranteed or is only 100,000 euro guaranteed as with irish banks/building societies. I will be depositing 180K in a joint account with my wife (maximum allowed for joint account is 240K).

Also noticed, most people on this site are not depositing with An Post but with Banks/Building Societies. Is there a reason for this? Am i missing something? Or is it the length of time you need to keep your money in An Post that is a turn off for most people.

Anyway, thanks for you help in advance.

Rgds
Paul.
 
Hi Paul,
I think you would find that a lot of people here actually have taken out An Post Savings Certificates and/or Bonds. I have recently signed up for the Certificates.
However, you need to ask yourself a few questions before you sign up. The most important is probably: Will you need access to the money in the 3 year (Bond) or 5.5 year (Savings Certs) period? If you think you will need some or all of the money then this may not be the best home for your money because of the way in which the interest is added.
Your calculations are correct if you leave the money there for the full term.
 
Agreed, the principal reason people do not have money with An Post is that the typical person cannot lock their money away for 3-5.5 years. (Although you can exit early subject to interest penalties).

If you can lock for that period, then you will not find a better rate.
 
Thanks Guys for your replies. Lots to think about, but do not need any of these funds and have other savings that i can dip into if i need to. Think i might take up the 5.5yrs an post rate.

Thanks again for you help.

Rgds
Paul.
 
Just to clarify regarding withdrawals.
With the Bonds interest is added yearly and with the Certs it's every 6 months. You can withdraw at any time. However if you withdraw the day of the interest being added you won't lose anything. That gives some flexibility - right?
 
This thread is very informative with regarding to Savings Certificate and Savings Bonds from An Post especially oldtimer's (as usual helpful :)) contributions.
 
149oaks said:
Just to clarify regarding withdrawals.
With the Bonds interest is added yearly and with the Certs it's every 6 months. You can withdraw at any time. However if you withdraw the day of the interest being added you won't lose anything. That gives some flexibility - right?
Click to expand...

Well not really - e.g bonds, if you withdraw on the 1st anniversary you get 2.2%, second anniversary 5.2%, maturity 10%. Interest is added in such a way as to incentivise you not to withdraw before maturity
 
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