Announcement a National Solidarity Bond to be introduced

[Brendan Burgess]

aimed at small investors in the new year

[Towger]

National Solidarity Bond
It is proposed to establish, early in the New Year, a new National Solidarity Bond to assist the financing of the capital investment programme underlying this Budget (i.e., the bond will not be used to fund additional spending).

The bond will be in addition to the current range of “State Savings” products (savings bonds, savings certificates, prize bonds, national instalment savings and the Post Office deposit account).

The main features of the new bond will be:-

• investors can choose to invest for a five, seven or ten year period;
• interest will be paid annually;
• investors will be entitled to a final redemption bonus on maturity as an incentive to leave their funds invested - the bonus will be different for each investment period;
• full details of the tax treatment of the bond will be provided in Finance Bill 2010;
• it will be possible to invest in the bond by lump sum or by occasional payments;
• the bond will be available through the following channels
  • internet,
  • telephone,
  • direct debit,
  • at your local Post Office.

The bond will be sold by An Post on behalf of the National Treasury Management Agency (NTMA). Further details will be announced by the NTMA early in the New Year.

[Fatphrog]

I wonder will it be better than the existing savings bond and certificate which are currently the best fixed term 3 and 5 year investments.

[Eithneangela]

Another SSIA! Bring it on!

[j26]

Originally Posted by Eithneangela

Another SSIA! Bring it on!

Methinks so, but at least it would be focused on getting something built, hopefully schools - prefabs don't really cut it for long term schooling

[roro123]

Originally Posted by Eithneangela

Another SSIA! Bring it on!

I thought the previous SSIA was done to take money out of the economy because it was overheating. Sounds to me like the government is now relying on this form of finance because they can't get cheaper credit from the international markets. I wonder what the Moodys Rating will be like.

[Eithneangela]

Isn't that fine - all that moolah sitting in various Financial Institutions vying with each other with really good interest rates - why not offer a 5-year savings opportunity via a Government vehicle (unless it's Anglo Irish Bank!) to people who have money to invest and would be willing to lock it into a Government-backed scheme?

[Sunny]

It won't be SSIA like in any shape or form. Won't even be that generous because they won't want to see an outlow of funds from the banks and also won't want to discourage people spending.

[VOR]

Originally Posted by Sunny

It won't be SSIA like in any shape or form. Won't even be that generous because they won't want to see an outlow of funds from the banks and also won't want to discourage people spending.

You're so right. He could have overcome this by including a pension option. It would have meant that the switch to the bond would come from pension money and not from bank outflows. It would also have given the government access to the money for a longer term. And it may have delivered a much needed pension mindset.

[gotta!]

This bond was just being discussed on Newstalk and Eddie Hobbs advice was that if the Govt is only offering it at a flat rate of return stir clear of it as the govt will be screwing over investors but if the return is linked to inflation where in the markets inflation is believed to increase over the next coming years people should seriously consider it as an investment opportunity!

[brigade]

Is this the same thing that was mooted by David Begg of ICTU.
Any word on the timeframe for this to be introduced.

[cork]

Has anybody heard anything on this?

Whan is the Finance Act due?

[Dexysgirl]

Is there new information on this????

[Corcaigh abu]

They have kept this very quiet and i wonder is it just one of these flash in the pan announcements the govt love to make - to try and keep us quiet?

(Not a Jim Corr conspiracy theory though!)

[slumdogz]

Is there any news on this bond?
Will it actually happen?
Is it worth waiting for or going for the post office saving bonds?

[Squonk]

I read this on the Sunday Times. They are saying 2% interest rate and a bonus payment of up to 25%. The bond, to be launched next month, will be open to everyone.
http://www.timesonline.co.uk/tol/new...cle7061157.ece

[maura]

Does anyone know if there is an update on this bond?

[Brendan Burgess]

Discussion continued in this thread in the Investments Forum

http://www.askaboutmoney.com/showthread.php?t=137227