Hi Larry, I am not a financial expert like many of those who post on this site, but judging by the date you give (you seem to have been unlucky not to get in a month earlier) you seem to have this product detailed below:
“Rates on bonds bought from June 2013 Onwards
The maximum maximum gross return possible is now 35% over 10 years.(reduced from 50%)
The annual rate of 1% interest remains the same but the bonuses have been reduced .
If you cash in the bond at the end of 5 years you will get a 6% Bonus.
At the end of 7 years you will get a 13% Bonus and if you keep the bond for the full 10 years you will get the highest 25% Bonus. DIRT will be payable on the basic interest – but not on the bonuses.
A 35% gross return over 10 years is 3.05% AER . After DIRT this comes to 2.79% AER.
An investment of €1000 in solidarity bonds for 10 years will result in a balance of €1317 Net”
If so, then I think you are mistaken (but it is an easy mistake because of how they present their annual statements) in thinking that on an investment of €22,000 your maturity value is €27,500. This is the figure it may give on the statement but the €5,500 maturity interest that is shown (as being due in July 2023) relates only to the 25% tax free bonus you get if you leave it in for 10 years. So when it matures in July 2023 you will get this €5,500 tax free (giving you the €27,500 you mention), but An Post also has a separate account in your name into what interest at a rate of 1% a year is being paid for the ten years. This is what deduct DIRT on).
This gives the very confusing headline figure of 35% interest for 10 years. So the product is basically structured so that it pays a fixed rate of 1% (less DIRT) for each of the ten years and then an additional tax free 25% bonus after ten years.
Like I say, I know this because I had one of the original (Issue No 1) 10 year bonds that matured this year, which was meant to pay 50% overall but the maturity notice only showed 40% and when I phoned they explained that the other taxable 10% is still sitting in an account in my name waiting to be closed whenever I want. (As it still seemed to be earning 1% I left it there). So, unless I am totally mistaken, you will find that in July 2023 you will also have an additional roughly €2,200 (less DIRT) waiting to be paid out.
The way they structured this bond was so unnecessarily complex that after Issue No 3, An Post just made it a straight forward tax free product (with interest not paid in two different confusing ways) in every Issue from then on.
One thing to say about An Post is that they are very helpful on the phone (with none of the 40 minutes listening to jingles like some places) and if you give them a ring they will hopefully confirm all this and you may be looking at a slightly better return that you currently think you are looking at.