State Savings Certs, Qs

[Andy_and_lou]

I've looked through best buys and wondering the following:

1. How much notice do you have to give before withdrawing?
2. Can you withdraw all money at once?
3. Will you loose all interest accrued or only some, how does that work?
4. How safe are they ie would you invest in them?

Thanks In advance

 

[Lightning]

1) None/days.
2) It seems that you can withdraw all the money at once.
3) See below.

State Savings: Savings Certificates 17th issue
5.5 Years 3.53% (A normal deposit account would need to be paying *5.04% to match this rate because this product is not subject to DIRT at 29% which is the 'special DIRT rate' for long term deposits) Best 5.5 year rate
Note 1: €120,000 maximum
Note 2: Early withdraw is possible but is subject to interest penalties. Interest is not accrued on a daily basis, it is accrued each six months from date of purchase. You can withdraw at any time during the term but you will loose any non accrued interest.

4) Your money is invested in the Irish national debt. Personally, I will not have my savings in the Irish national debt right now with default a real possibility. There are a few threads on this topic.

 

[dockingtrade]

what happens in the case of default. Do you get some kind of asset/equity swap , discount or is it just on hold until recovery.