State savings 3 year bond - should i buy?

Looking to move some of my savings into a 3 year state savings bond to earn a little more interest, say 10-12k. Is there any reason to avoid these bonds, is there a risk that i could loose my money?

You can see the details here: statesavings.ie/Downloads/Brochure2.pdf
If they arent advisable whats the safest place to put money for 3 years and earn a similar return?

cheers

Hi Cyrus

Check out my post on How to protect deposits

The outlook is too uncertain and you should avoid any fixed term products.

Brendan

But does early withdrawal not reduce the interest rate?

YES - understandably, if cashed in early,
the rates are adjusted to reflect the shorter time period
for which the money has been on deposit
3 year Savings Bonds rates are as follows -

AER (Annual Equivalent Rate)
End .......Grossed.......Net After
Year.......Up Rate......Tax Rate
1.......... 3.01%........2.20%
2.......... 3.52%........2.57%
3.......... 4.42%........3.23%


The total overall return in percentage terms is
End .......Grossed.......Net After
Year.......Up Rate......Tax Rate
1...........3.01%........2.20%
2...........7.12%........5.20%
3.........13.70%.......10.00%