Prize Bond vs 5 Year Fixed State bond

galway_blow_in said:
Absolutely dreadful experience, I put 60 k in spring of 2021 in the ten year bond
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I'm surprised you put that much away in this, that was almost the lowest low of the interest rate cycle. Are there any penalties for withdrawal of money early .
I wonder is there a way of buying into bonds maybe a year or two before maturity ?
 
joe sod said:
I'm surprised you put that much away in this, that was almost the lowest low of the interest rate cycle. Are there any penalties for withdrawal of money early .
I wonder is there a way of buying into bonds maybe a year or two before maturity ?
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I put it there as an emergency fund , there was no talk of increasing rates in spring 2021 , anyway there is no penalty for early withdrawal, tax free rate is sub 1% , yield on UK Gilts were nearly 4.3% when I bought, I see the UK as every bit as safe as Ireland in terms of default risk regardless of how crazy things were for a month or so in London
 
galway_blow_in said:
put it there as an emergency fund , there was no talk of increasing rates in spring 2021
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Well there was alot of talk about inflation as the covid lockdowns ended then, nothing in the Irish media albeit but internationally yes especially in the US as they were already experiencing inflation. Even as far back as 2020 when the Evergreen tanker blocked the suez canal the seeds of the inflation had been planted as shipping costs exploded.
That's good that you are getting your money out of this with no penalty except the inflation penalty affecting all deposits
 
joe sod said:
Well there was alot of talk about inflation as the covid lockdowns ended then, nothing in the Irish media albeit but internationally yes especially in the US as they were already experiencing inflation. Even as far back as 2020 when the Evergreen tanker blocked the suez canal the seeds of the inflation had been planted as shipping costs exploded.
That's good that you are getting your money out of this with no penalty except the inflation penalty affecting all deposits
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It served a purpose at the time, anyway the NTMA are a shambles to deal with
 
masterboy123 said:
Hi All,

I want to invest around €10k and wondering which would fetch me a better return?
  • Prize Fund rate currently 0.35%.
  • 5 year bond = 3% Total Return.
Any advice/opinion please.
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i deal with linked finance rates good 7 to 11 pc app........default very low 173 loans default 5.......i would i
RonnieShinbal88 said:
Obviously lending to small companies (like pubs, restaurants, tanning salons etc.) is riskier if we hit a bad recession so that's something to consider, once you lend the money out it's gone and you have to wait for it to come back in monthly loan repayments!
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Just a quick follow up,received my refund a few days ago but not a cent in interest despite owning the bond for eighteen months, I rang state savings ( NTMA) and was told “ no interest for first three years “

The product is advertised as paying 1% per annum ( tax free ) so it’s slightly misleading i would argue
 
ClubMan said:
Where is it advertised like that? As opposed to saying that the AER is c. 1%?

10 Year National Solidarity Bond | Products | Ireland State Savings

The 10 Year National Solidarity Bond offers the highest return on your investment.
www.statesavings.ie www.statesavings.ie
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That's not a State Savings advertisement.
AER on a fixed term product such as this is what you earn at the end of the full term.
It's clearly stated in the product information (which you agree to have read when signing the application form) that there is no return if the bond is cashed in before the 4th year.
 
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galway_blow_in said:
The product is advertised as paying 1% per annum ( tax free ) so it’s slightly misleading i would argue
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Hardly misleading, they literally have a table of interest credited in each year on the website and brochures. You've confused per annum and AER

galway_blow_in said:
AER = interest earned in a year as stated at bottom of above link
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This bit is a little misleading but much like the state savings, you didn't bother to click the link and read that sentence in full context of the paragraph it was written.

AER is used to standardize comparison of different products. It can't tell you when interest is paid or the penalties but it is accurate over the full term.
 
_OkGo_ said:
Hardly misleading, they literally have a table of interest credited in each year on the website and brochures. You've confused per annum and AER


This bit is a little misleading but much like the state savings, you didn't bother to click the link and read that sentence in full context of the paragraph it was written.

AER is used to standardize comparison of different products. It can't tell you when interest is paid or the penalties but it is accurate over the full term.
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I’ve read the terms and conditions and I’m not entitled to interest and even after three years, would only be entitled to .25% but the product is somewhat misleading
 
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