post office query ???

[faolteam]

Saving certificate query ???
i had a saving certificate for nearly over 15 years and 6 months, but i recieved a letter the other day from aN Post, and they7 said that the national treasury manangemnet had decided not to extend the period for the certificate,

and they give u 3 options cash it in

or reinvest all or part in thh current 12th issue of saving binds or the 17 th issue of saving certificates details,

please note that the reinvestment of existing accounts on maturity of on maturity will be excluded for the purpose of calculating maxium investment limist except were the holder subsequently purchases pr seeks to purchase further saving bonds

any clues folks from what i can see its really which is best the 12th issue or the 17th issue, heres apr =

Well i can tell u that i accumulated 163% interest in 15 years and 6 months

but the :

SAVING BONDS CURRENT 12th issue

guaranteed return of 10 % tax free over 3 year period

equivalent to an average annual rate of 3.23% if held for the full term

individuals may invest a mininmunm of 100 euro


SAVING CERTIFICATE CURRENT 17TH ISSUE

guaranteed return of 21 % tax free over 5year 6 MONTH period

equivalent to an average annual rate of 3.53% if held for the full term

individuals may invest a mininmunm of 50 euro


ANY IDEAS


thanks

 

[oldtimer]

Depends on your personal circumstances and how long you intent leaving the money in savings. If you need good interest in the short term saving bonds or saving certificates are not for you. If you intend leaving for longer period, over 3 years, they may be considered. Although their interest rates are not attractive at the moment, with rates dropping they could be attractive in the not too distant future. Bonds and Certs have their advantages, State guaranteed and DIRT free. Personally I think saving certs offer better value over the longer period. Certificates have interest added every 6 months while Bonds interest is added every 12 months so it important to watch anniversary dates. Remember interest is not added daily. At the moment Certs pay 3.53% per annum but to get this rate they must be left to maturity i.e. 5.5 years. This would equate to around 4.4% when comparing to products DIRT related. Hope this helps.

 

[Lightning]

Keep in mind that the 2 options that you listed above are not your only choices and you are likely to be better off (even after DIRT) with a non-An Post Term Deposit.

A one year term deposit with Anglo (current the 1 year TD market leader) will give a 6% return which is better than any of the An Post rates. A 3 year term deposit with Anglo Irish gives 15.76% return or 5% on an annual basis.

Shop around.