State Savings (NTMA) bonds and certs looking good

kamakaze J said:
If I plan on only saving for 2 years + 1 day is there any point in going for the 3year one rather than the 5year 6months one so as the interest rate is better on the longer term one?
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If you put €1,000 in savings bonds, after two years it is worth €1052. If you put €1,000 in saving certificates after two years it is worth €1046.
 
Sorry, I tried really hard to figure this out before posting. Those returns don't reflect the AER rate for either of those plans.

Can you please explain? Thanks a million ....
/M.
 
Thanks,

Never thought to scroll down to the 2nd page of their PDF brochure- I see the difference in rates their now.
 
Manuel,

Click on the link in the best buys and a PDF opens up- the actual rates to compare year one and year two are on the second page- missed it when I looked aswell.

Edit: I should clarify- the PDF opens up after you clink the second link; i.e the one on this page; http://www.statesavings.ie/products/Pages/default.aspx
 
CiaranT said:
Official speaking, the IMF/EU/ECB have primary creditor. Everyone else, including State Savings, have secondary creditor status. Secondary creditors would be subject to a haircut if there is a debt restructuring.
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No-one has commented on this - is that true?

From statesavings.ie:
How are State Savings™ protected?
When you put money into State Savings™ you are placing
your money directly with the Irish Government.
The repayment of all State Savings™ money is a direct,
unconditional obligation of the Government of Ireland.
• There is no upper limit on the amount protected
 
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Yes it is true, the creditor status of State Savings is pari passu with private investors in Irish sovereign debt. The CDS market gives a good judge of that risk level.

On a related note, I have heard further rumours, and it can only be described as rumours, that State Savings are going to cut rates soon. If you are happy with State Savings, then now might be a good time to open an account.
 
As a matter of interest are rates variable or are they fixed at the rate when purchased for the term applied for.
 
dewdrop said:
As a matter of interest are rates variable or are they fixed at the rate when purchased for the term applied for.
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The State Savings instant access and 30 day notice account products have variable rates.

The 3 year, 5 years, 5 years 6 months and 10 years products are fixed at account opening stage.
 
Hi Guys, just want to get some advice. I have 100k in Rabo at mo @2.25, I assume with dirt going up 33% and deposit rates coming down its a no brainier to go to the 5.5 year state certs. I can hopefully go without the money for this time as I have 20k in credit union for any forseeable issues. What ye think?
 
Savings Bonds

Does the account opening date apply from the day you hand over the money in the p.o.
 
Re: State Savings

I've noticed that interest is accrued every six months on saving certificates and every 12 months on savings bonds.

It's something to be aware of when cashing them in. If you make a withdrawal before the relevant anniversary then interest isn't payable for that period.
 
pudds said:
Does the account opening date apply from the day you hand over the money in the p.o.
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Yes. A receipt is handed to purchaser and the new account applies from date as stated on that receipt. The receipt bears a number and this is the official number which will appear on the bond or certificate when posted to purchaser at later date. This official bond or certificate will be dated from the day you hand over the money in the p.o.
 

Correct in general but it varies.

The 10 year bond, for example, pays most, but not all, interest on maturity date and not annually. Also, some of the products pay a lower AER rate in earlier years.
 

that's good to know, thanks oldtimer, I will be in the P.O tomorrow so hopefully no interest rate reductions will happen over night which is probably unlightly.
 
I plan on getting to the Post Office over the coming days to open a 3 year bond, I have photocopied my documents, do I need to bring originals.. anyone with experience of this ?
 
Palerider said:
I plan on getting to the Post Office over the coming days to open a 3 year bond, I have photocopied my documents, do I need to bring originals.. anyone with experience of this ?
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- Bring the originals - the clerk actually photocopies them. As you already have them photocopied you could offer the clerk these but they should ask to check the originals.
 
Is there a benefit to purchasing several bonds of smaller amounts rather than one large bond?

If one large bond is held and a partial en-cashment is required in a year or two does this affect the rate and terms paid on the remaining bond amount?

E.g. if 100k is invested and 51.1k is taken out on the first anniversary (or 52.6k on the second anniversary) will you still get 55k when the bond matures on the third anniversary?
 

After withdrawals what ever funds remain until maturity will get the full rate.

A lovely and very helpful girl I met in the head P.O. today actually pointed this out to me even though I didn't request any details.
 
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