Confusion over state solidarity bonds

[Estelle]

I have invested a lump sum of money in state solidarity bonds that will mature in ten years.

I could save 500 a month right now. I got a letter from An Post saying that I can save into this ten year solidarity bond monthly. I don't understand how the interest and 10 year bonus will be applied on a ten year bond if I'm saving monthly. Can anyone tell me how this works?

I tried ringing An Post and speaking to someone in my local post office but they didn't explain it and weren't in helpful form.

 

[The Ghoul]

You can save monthly but each bond is a fixed term deposit

Eg
Buy a 10 year bond in February 2013. Interest paid in February 2014, 2015 etc. Matures in February 2023
Buy another 10 year bond in March 2013. Interest paid in March 2014, 2015 etc. Matures in March 2023

You can buy bonds "manually" when you like or can setup an account that will automatically purchase a bond when the amount of money in the account goes over a certain threshold. You might save regularly into this account but each time a bond is purchased, the money is going into a fixed term deposit.

 

[Estelle]

Thank you so much for that reply The Ghoul. You clarified what 2 an post workers could not. I definitely do not want to do that with my money so Ill be leaving that alone. Thanks a million again you saved me making a big mistake.