Ulster Bank -V- State Savings

harriet

Registered User
Messages
62
Trying to get my head around this one and would appreciate if someone who has a better knowledge of how to calculate rates to give me some advice.

UB are trying to sell me the Index Growth Tracker Bond Series 2 but have told them I am already considering the 5 and a half year State Savings Cert.

On a like for like basis I calculate a return of €21k over 5 anda half years on my my €100k on the Savings Cert into my hand with no tax and approx €3818 pa

Without taking into consideration the 7.5% tracker bonus with UB am I correct in saying the return on the same €100k would be €100k @ 18% less 30% DIRT equalling €12600 over the 5 year term.

Including the bonus should it apply after the 5 years what would the total interest less DIRT be on the €100k.

Thanks
 
Assuming the 7.5% bonus is based on the 100k along with an 18% guaranteed return €25,500 less life insurance tax currently 33% which is €8415 so €17,085 after tax.
 
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