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.
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State Savings (NTMA) bonds and certs looking good
- Thread starter The Ghoul
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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.
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.
Are you likely to need the money at any stage over the next 10 years?
quickinvestor
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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.
KBC only lets you save 3% for money up to 15 thousand.
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.
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.
quickinvestor
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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 ?
The NTMA are now issuing 5 year debt at a negative rate.
The gap between NTMA State Savings rates and both sovereign yields and deposit rates continues to grow.
The gap between NTMA State Savings rates and both sovereign yields and deposit rates continues to grow.
Is there any indication that rates might change on Sunday Aug 6th 2017 - as Monday is a public holiday?
settlement
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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
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
But it's guaranteed.
"Pretty poor" is a relative term. It's pretty good compared to other risk free investments.
settlement
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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).
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.
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...
