State Savings (NTMA) bonds and certs looking good

The Irish 10 year bond is now yielding 0.33% today. Meanwhile, the NTMA pay retail State Savings investors 1.50% AER tax free for 10 years. Big difference between the largely institutional rate and the retail rate.
 
Last edited:
Ciaran it's a good point.

The difference is that in 2012 it was yielding over 12% and if you had purchased then you would now be sat on a substantial tax free capital gain as a private investor.

The bond market and state savings really are different things entirely.
 
hi would you recommend to invest in the 10 year bond or which? I have money saved which im not sure what to do
 
This thread seemed to die an awful debt. Maybe it was the new rate of 16 percent that changed people's opinion. I think people should remember that its still a really good investment considering the DIRT is paid at 33percent on deposits in banks.

KBC only lets you save 3% for money up to 15 thousand.
 
CiaranT said:
A few corrections ...



DIRT is 39%.



Cap is 40,000 EUR.



Been a while since the NTMA have had 'new rates'. 16% is the gross rate for 10 years. 1.50% AER tax free is the comparable rate.
Click to expand...


few corrections for you

No, How is that gross? when there are no taxes on the state savings ?

Would it not be 1.6% per year ?
 
1.60% AER tax free means 1.60% per year.

The gross rate is the rate earned over the lifetime of the term deposit.

Comparable rates are quoted on an annual basis.
 
Will be interesting to see if more cuts come on Sunday 4 June or if the NTMA wait until bank holiday weekends later in the year.
 
No indication other than State Savings rates are once again out of sync with deposit rates and sovereign yields.
 
Hi all,

What are current thoughts on state savings?

16% ten year return is pretty poor I think. Considering it was previously 45%. I presume when it says tax free, that means both dirt and cgt? In any case it's not overly enticing
 
settlement said:
Hi all,

What are current thoughts on state savings?

16% ten year return is pretty poor I think. Considering it was previously 45%. I presume when it says tax free, that means both dirt and cgt? In any case it's not overly enticing
Click to expand...

But it's guaranteed.
 
settlement said:
Hi all,

What are current thoughts on state savings?

16% ten year return is pretty poor I think. Considering it was previously 45%. I presume when it says tax free, that means both dirt and cgt? In any case it's not overly enticing
Click to expand...

"Pretty poor" is a relative term. It's pretty good compared to other risk free investments.
 
noproblem said:
But it's guaranteed.
Click to expand...

Yes, I know. But a guaranteed investment that will likely be outstripped by inflation is not much good in my eyes. I know the stock market is not guaranteed but it seems to me taking a 'risk' with it and getting an average return worth many times over this return is worth it for vast majority of people (excepting perhaps those near retirement).

dub_nerd said:
"Pretty poor" is a relative term. It's pretty good compared to other risk free investments.
Click to expand...

I suppose compared to other risk free investments in Ireland. But outside of Ireland it's common to have interest rates of 4% and higher without having to put away money without touching it and losing interest.
 
settlement said:
I suppose compared to other risk free investments in Ireland. But outside of Ireland it's common to have interest rates of 4% and higher without having to put away money without touching it and losing interest.
Click to expand...

Would you care to name these risk free investments that pay a coupon of 4%? Are there investment costs involved and is the return tax free?

It sounds almost too good to be true...
 
You must log in or register to reply here.
Menu
Log in
Register