Duke of Marmalade
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Re: An Post Installment Savings : offering 20% after 5 years, avg annual compound 3.7
I want to correct some loose info in this thread.
Instalment Savings are a 6 year product with the first year for the collection of the instalments.
The CAR is 3.37% per the An Post website
Savings Certs with a 5.5 year term and 21% growth (CAR 3.58%) are a better bet.
Annual deposit accounts are subject to 25% DIRT and levies and PRSI (I think). Don't be surprised if this increases.
Longer term deposit accounts and insurance products are subject to DIRT (exit tax) at 28% though insurance policies are not subject to levies. I think most "long term" deposits are structured as annual so that the DIRT is in fact 25%.
IMHO Savings Certs are the best value medium term deposit style investments around. No way can you get 3.58% after tax guaranteed for 5.5 years anywhere else. As soon as this crisis abates and it already is beginning to, deposit rates will fall back below the mortgage rate.
I want to correct some loose info in this thread.
Instalment Savings are a 6 year product with the first year for the collection of the instalments.
The CAR is 3.37% per the An Post website
Savings Certs with a 5.5 year term and 21% growth (CAR 3.58%) are a better bet.
Annual deposit accounts are subject to 25% DIRT and levies and PRSI (I think). Don't be surprised if this increases.
Longer term deposit accounts and insurance products are subject to DIRT (exit tax) at 28% though insurance policies are not subject to levies. I think most "long term" deposits are structured as annual so that the DIRT is in fact 25%.
IMHO Savings Certs are the best value medium term deposit style investments around. No way can you get 3.58% after tax guaranteed for 5.5 years anywhere else. As soon as this crisis abates and it already is beginning to, deposit rates will fall back below the mortgage rate.