national recovery bond

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maura said:
Does anyone know if there is an update on this bond?
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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
 
It's not a very impressive return. I wonder who they are hoping will invest.
 
What's the verdict then? - One to avoid?

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

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