Means Tested Medical Card (>70): Notional Interest

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MrViking

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I am helping an elderly relative with applying for a medical card (over 70, means tested). Does anybody know the rate of notional interest the HSE applies to savings over the €36k threshold?

Also, do they apply the same notional rate to all forms of savings (bank deposit v equities for example)?

Thanks
 
Can't find it online - and I'm sure that you checked already - but why not just apply and see what the outcome is? And appeal if necessary/merited?
 
The notional rate is set quarterly. But here's the key piece:
"Savings and similar investments of €36,000 for a single person and €72,000 for a couple are disregarded. A notional rate of interest is applied by the HSE to the balance. Alternatively, the HSE will apply the actual rate if you provide a certificate of interest paid on savings in the last full calendar year."

For equity investments, provide the full details of dividends, and they will use that.
 
RedOnion said:
The notional rate is set quarterly. But here's the key piece:
"Savings and similar investments of €36,000 for a single person and €72,000 for a couple are disregarded. A notional rate of interest is applied by the HSE to the balance. Alternatively, the HSE will apply the actual rate if you provide a certificate of interest paid on savings in the last full calendar year."

For equity investments, provide the full details of dividends, and they will use that.
Click to expand...

Got it - I can see us building a strong application by being really clear on “actual” income arising from portfolio. Thanks for that.
 
MrViking said:
Got it - I can see us building a strong application by being really clear on “actual” income arising from portfolio. Thanks for that.
Click to expand...
So it is only the income from savings that are taken in to account, not the actual amount of savings?
 
I have some money invested in Saving Certificates and Savings Bonds. The interest is paid at the end of the term. It is about 1% at best.

The money is invested for three years or five years. I do not get an annual interest income.

How is this interest received means tested as it is not an annual interest?
 
Maybe based on the annualised returns at the end of these pages? But only the HSE can clarify for sure so maybe ask them?

Ireland State Savings - 5 Year Savings Certificates | Products | State Savings

Our 5 Year Savings Certificates are a secure and straight forward way to save and earn interest on your savings over the medium term.
www.statesavings.ie www.statesavings.ie

Ireland State Savings - 3 Year Savings Bonds | Products | State Savings

Our 3 year Savings Bonds are the ideal way to save and earn interest on your savings over the medium term.
www.statesavings.ie www.statesavings.ie
 
Grizzly said:
I have some money invested in Saving Certificates and Savings Bonds. The interest is paid at the end of the term. It is about 1% at best.

The money is invested for three years or five years. I do not get an annual interest income.

How is this interest received means tested as it is not an annual interest?
Click to expand...
The notional rate used is based on actual interest rates available from Irish banks. So its currently less than 1%. Just let them use their notional rate if you're currently applying.
 
The HSE notional rate is usually much higher than the actual rate so if you are borderline on the income level it's best to use the actual rate. Your savings Bonds will show the amount of Interest you will get at the end of the term so I would simply divide that figure by 3 for the yearly rate.
 
Black Sheep said:
rate so if you are borderline on the income level it's best to use the actual rate. Your savings Bonds will show the amount of Interest you
Click to expand...
Sorry, I misread that the poster was receiving 1% per annum rather than over the term of the savings.
 
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