Term | AER | Interest | Your Return |
---|---|---|---|
Year 1 | 0.00% | 0.00% | €100,000.00 |
Year 2 | 0.50% | 1.00% | €101,000.00 |
Year 3 | 0.66% | 2.00% | €102,000.00 |
Year 4 | 0.74% | 3.00% | €103,000.00 |
Year 5 | 1.17% | 6.00% | €106,000.00 |
Year 6 | 1.29% | 8.00% | €108,000.00 |
Year 7 | 1.37% | 10.00% | €110,000.00 |
Year 8 | 1.54% | 13.00% | €113,000.00 |
Year 9 | 1.66% | 16.00% | €116,000.00 |
Year 10 | 2.01% | 22.00% | €122,000.00 |
Term | AER | Interest | Your Return |
---|---|---|---|
Year 1 | 0.00% | 0.00% | €100,000.00 |
Year 2 | 0.75% | 1.50% | €101,500.00 |
Year 3 | 0.83% | 2.50% | €102,500.00 |
Year 4 | 1.11% | 4.50% | €104,500.00 |
Year 5 | 1.74% | 9.00% | €109,000.00 |
As these are state savings do we need to concern ourselves with the 100,000 DGS, or are they automatically guaranteed and if so is there any overall maximum.You are correct. The current return on 5 year Savings Certs is 9% total (1.74% AER) and it is tax free.
The maximum investment per issue of Savings Certs is €120,000 per issue. The current issue is Issue 25. A new issue generally corresponds with a rate change, so there is no way of knowing when Issue 26 will appear. So you are limited to €120,000 for the time being, and when issue 26 arrives along it will be possible for you to invest another €120,000 at that time. Note that the limit of €120,00 is product specific, so you can invest €120,00 in each of the different products (Savings Certs, Savings Bonds, National Solidarity Bond, and up to €250,000 in prize bonds)
If your investment is open ended, I.e. you have no fixed date when you will need the money, you could also consider National Solidarity Bonds. These are a 10 year product. But as with any State Savings product, you can withdraw at any time. The return on these is as per the following table. So if you put your money in this rather than the Savings Certs, and took it out in 5 years you would get less, but if you left it for another few years you would do better.
Term AER Interest Your Return Year 1 0.00% 0.00% €100,000.00 Year 2 0.50% 1.00% €101,000.00 Year 3 0.66% 2.00% €102,000.00 Year 4 0.74% 3.00% €103,000.00 Year 5 1.17% 6.00% €106,000.00 Year 6 1.29% 8.00% €108,000.00 Year 7 1.37% 10.00% €110,000.00 Year 8 1.54% 13.00% €113,000.00 Year 9 1.66% 16.00% €116,000.00 Year 10 2.01% 22.00% €122,000.00
The annual return in the case of 5 year Savings Certs is as follows:
Term AER Interest Your Return Year 1 0.00% 0.00% €100,000.00 Year 2 0.75% 1.50% €101,500.00 Year 3 0.83% 2.50% €102,500.00 Year 4 1.11% 4.50% €104,500.00 Year 5 1.74% 9.00% €109,000.00
There are other options out there which offer better rates in the short term, and while they may not have the same State Guarantee that State Savings do, many do benefit from guarantees such as the €100,000 Deposit Guarantee Scheme (DGS)
The guarantee in relation to State Savings is separate from the DGS and is in fact broader and stronger. ALL savings with State Savings are guaranteed by the state, up to the limits you are allowed to invest.As these are state savings do we need to concern ourselves with the 100,000 DGS, or are they automatically guaranteed and if so is there any overall maximum.
Rest assured
The repayment of all State Savings money is a direct and unconditional obligation of the Government of Ireland. Funds saved in State Savings Fixed Term products and Prize Bonds are placed in the Central Fund of the Exchequer and are used to fund Government expenditure. They form part of the National Debt of Ireland.
100% protected by the State
All of your savings, no matter how much you save with us, is protected by the State. At State Savings there is no upper limit of the amount protected, and there is no expiry or end date for this protection.
Thank you that's good to know.The guarantee in relation to State Savings is separate from the DGS and is in fact broader and stronger. ALL savings with State Savings are guaranteed by the state, up to the limits you are allowed to invest.
See here
Thank youAbsolutely not
If you deposit € 100,000 with AIB and get back € 103,000 after 2 years, then the € 3,000 is subject to DIRT at 33% - so you will get € 102,100
There is no capital gains tax involved
Year 1 (2020) | 70,035 | 0.05% |
Year 2 (2021) | 70,175 | 0.12% |
Year 3 (2022) | 70,350 | 0.17% |
Year 4 (2023) | 70,700 | 0.25% |
Year 5 (2024) | 72,100 | 0.59% |
Year 6 (2025) | 73,500 | 0.82% |
Year 7 (2026) | 74,900 | 0.97% |
Year 8 (2027) | 77,000 | 1.20% |
Year 9 (2028) | 79,100 | 1.37% |
Year 10 (2029) | 81,200 | 1.50% |
Low risk = Low return
High risk = High return